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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECS: Under an option A Contract, is an agreed schedule of...

If it was intended that the "schedule of rates" be used to assess compensation events then there would need to be some amendments to the standard clauses that otherwise state a CE should be assessed...

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Answered: NEC ECC: What about if the Contractor Employs a person who must...

People Cost under the SCC is based upon the time spent working in the working areas.  This is usually calculated as follows for 'employees'; the total of the applicable cost components divided by the...

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Answered: NEC ECC: Disallowed Costs - Defect

Cost of correcting Defects is often a 'bone of contention' on projects under the ECC contracts.  You rightly state that the cost is Disallowed where 'not complying with .... the Works Information'....

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Answered: NEC ECC: Under option C, are the costs of dealing with an...

I understand where you are coming from but the express wording of the contract says otherwise i.e. clause 11.2 (25) stated "Disallowed Cost is ... the cost of ... - preparation for and conduct of an...

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Answered: NEC ECSC: Subcontractor fee and Contractor fee applied to a...

Not quite. You are right in adding the 15% contract fee of the specialist onto his costs.You then need to apply the Contractor's "percentage for overheads and profit added to other Defined Costs"...

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Answered: NEC ECC: What options are available to the Contractor to employ...

If the subcontract is an ECS then you can omit work from the Subcontractor using a clause 14.3 instruction which would then become a clause 60.1(1) compensation event. Depending on which main option...

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Answered: NEC ECC: Omitting an activity schedule item?

You are required to Provide the Works in accordance with the Works Information, not the Activity Schedule. The Works Information does not require you to provide furniture so you won't be providing...

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Answered: NEC ECC: NEC3 constraints

Any constraints has to how the Contractor Provides the Works must be set out in the Works Information (by definition WI = .....  specifies and describes the works or states any constraints on how the...

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Answered: NEC ECC: No Sub-Contract Fee Stated in the Contract Data...

Oh, how many times have I heard this ... My understanding is that if no figure is stated in the Contract Data, then a "fair and reasonable" percentage would be imposed by the courts. (It is definitely...

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NEC ECC: Information for H&S file (as builts etc)...

If after Completion the Contractor has become somewhat unresponsive in providing information (requirements included in WI) to help with the H&S file, what options does the PM have to recover this...

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NEC ECC: Option B - Can a Compensation Event be added to the Scope of Works...

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Answered: NEC ECC: Disallowed Costs - Defect

As Andrew says, Defects are often a bone of contention, particularly on target contracts.  Clients often choose such contracts because they want to benefit from the Contractor's efficiencies - they...

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Answered: NEC ECC: Information for H&S file (as builts etc)...

One of the issues with any contract is where a party is obliged to do something, they don't do it and there is no corresponding remedy stated to address this breach.  It sounds like you are thinking in...

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NEC TSC: How does Contractor go about changing a main subcontractor in TSC?

If the contractor wants to change the subcontractor for no other reason than 'national procurement strategy' can the contractor do so? For example changing the subcontractor that maintains the chillers/ac

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Answered: NEC ECC: Stolen Equipment

Yes, Clause 84 requires the Contractor to provide the insurances stated in the Insurance Table, which includes loss of or damage to Equipment, at the replacement cost. Note that Equipment in NEC speak...

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NEC ECC: Does Contractor have to follow an instruction after Completion to do...

Under an ECC NEC3 contract does the Contractor have to follow an instruction from the Employer to do extra work after Completion has occurred?

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Answered: NEC ECC: Contractor's liability for delay due to change in...

It looks like the last action was your submitted CEQ (which I assume included an assessment of time) was not accepted by the PM and it looks like he has made a PM's quotation assessment which you do...

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Answered: NEC ECC: Does Contractor have to follow an instruction after...

This question has been asked previously, see link below;http://reachback.builtintelligence.com/12949/additional-instruction-completion-potential-disadvantages Notwithstanding the time issues, as...

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Answered: NEC ECC: Ownership of the weather risk and commercial opportunity

Without details of the amendment, I cannot give a meaningful / considered comment on whether the Employer or Contractor owns the weather - or to be more precise, to what extent and which weather...

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Answered: NEC TSC: How does Contractor go about changing a main subcontractor...

You can do this, but it would be by either : - when the Subcontractor's subcontract term finishes i.e. the the end of the 'service period'; or - via the termination procedures of the contract : this...

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