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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECC: Can time bar principles be applied to accepted CE's?

Interesting one ! Under NEC4, I would say the Contractor the time bar principle definitely cannot be applied retrospectively as an extra bullet point has been added to clause 61.4, which basically...

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Answered: NEC ECC: Tender Letter with Clarification not in the contract

Please can you amplify : - what is the description of the works? - what main payment option you are under? - what was in your tender justification letter ? (I assume this is from the Contractor) - what...

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NEC ECC: Change to working pattern

If the PM instructs the Contractor to change his working pattern from say a single day shift, 8.5 hour day, to double shift across a 17 hour period in a day is that the same as acceleration or for...

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NEC ECC: Can float be generated on the critical path and used to mitigate a CE

Float on critical path. ( NEC Option A) Can “Float” be generated between tasks on the critical path, and can it then  be used by any party, or is it still the Contractors float? For example there are...

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Answered: NEC ECC: Is there any status of exceptional acceptance of programme.

Yes - but depends on the wording here. I would much prefer "acceptance with comments" than exceptions. I am actually a strong advocate of "acceptance with comments", the comments being relatively small...

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NEC ECS: Providing grounds for rejecting a nominated Subcontractor

We have been instructed to go under contract  with a Subcontractor for scope which falls outside of our current Works Information, the reason being to provide a payment vehicle for the PM who tendered...

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Answered: NEC ECC: Can float be generated on the critical path and used to...

The answer should be b), but it depends on the timings of your Accepted Programme to see how easy this is to demonstrate. If the Contractor was running a week ahead this has created terminal float...

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NEC ECC: Project manager not supplying all the information to complete the...

A PC amount of 2000.00 was allowed for in the original BOQ for signage. The final amount when the project was completed was 50000.00. The project manager{PM} did not give the contractor  the signage...

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NEC ECSC: Can a Compensation Event occur after defects date

We have completed a project under ECSC contract and the defects date has now passed but an event has occurred which would ordinarily be a CE under clause 60.1(14). I appreciate that clause 61.5 states...

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NEC ECC: Option A vs. Option C Subcontract Fee %

In most circumstances, should the subcontracted fee % be higher on an option A than option C?  Option A states (22) Defined Cost is the cost of the components in the Shorter Schedule of Cost Components...

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Answered: NEC ECC: Does an Early Warning constitute a notice under clause 61.3

The early warning and compensation event processes are distinctly different. The time bar that you refer to is only on the notification of a compensation event. If you have notified previously an early...

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Answered: NEC ECC: Can a PM impose a date whereby a CE must be completed?

A Project Manager can try - but there would be no natural contract remedy if you then fail to meet that date. Key Dates have to be tied into the contract and can not be imposed mid-project. I...

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NEC ECC: Compensation Event Time Bar Clause 61.3

Under NEC3 ECC, to ensure a change to the Prices, the Completion Date or Key Date, the Contractor was required to ' ... notify a compensation event within eight weeks of becoming aware of the event ......

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Answered: NEC ECC: Option A vs. Option C Subcontract Fee %

You are absolutely right in your analysis ... not much more I can say !

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NEC ECS: If the subcontractor includes a risk register as part of his lump...

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NEC ECC: Option X5 and X7 delay damages

My completion date for the whole of the works is 31/10/17. Delay damages for Completion of the whole of the works are £5,000.00 per day Under X5 the section 1 completion is 31/10/17 with the amount per...

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Answered: NEC ECC: Does a CE need to implemented prior to payment?

Contractually yes, given that under option A a Contractor is paid upon completed items on the activity schedule, and that a compensation event does not make it to the activity schedule until it is...

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NEC ECC: Final Account time frame.

What is the time frame for  the QS  to complete the final account since final completion has been granted. He had all the information required to complete the final  account. From when are you...

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NEC ECC: Process to implement Clause X1 where no indices have been included?

We are currently working on a JV project which has clause X1 included in the contract documentation. We are aware that indices should be written into contract data part 1 but this has been overlooked,...

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Answered: NEC ECC: Option X5 and X7 delay damages

Firstly let’s point out that this is poor drafting/lack of understanding on the part of the Employer. I see this also with Key Dates – where the liability for missing a Key Date is what-ever cost the...

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