NEC TSC: What are the implications of an Employer's common law repudiation of...
The Employer as stated before terminated the Services of the Contractor based on R11 at Clause 91.2. As the contract was Task Order based, the Employer issued no more Task Orders in accordance with...
View ArticleAnswered: NEC ECC: Access to Work Areas, Standing Time CE
Two issues here : 1. If the events satisfy the definitions of a compensation event - which from what you say they do - then it is a compensation event and you can proceed to assess the effect by the...
View ArticleAnswered: NEC ECC: Option A - Cancellation Fees
Unfortunately the additional compensation event isn't clearly drafted it's not surprising that you're struggling to interpret it! Firstly what is the event that it is intending to compensate for?...
View ArticleAnswered: NEC FC: Framework Contract, what takes precedence?
Under the Framework Contract - which is really an agreement - each individual Package is let as a separate contract. Consequently, having signed up to that contract, the terms of that contact would apply.
View ArticleNEC ECC: Option B Recovery of business rates
The Contractor pays business rates on the site establishment (accommodation, stores and parking). The land that he uses belongs to the Client who provides it free of charge. For a compensation event...
View ArticleAnswered: NEC3 Option A: Contracotr is claiming Prolongation costs greater...
Clause 63.14 allows use of rates and lump sums to assess a compensation event IF the PM and Contractor agree, if there's no agreement then assessment is based on Defined Cost plus Fee. The PM only has...
View ArticleAnswered: NEC TSC: What are the implications of an Employer's common law...
The key point for me here is that there are two things (at least) being intermingled and it is important to separate them. There are a number of way to bring a contract to an end: 1) termination, a...
View ArticleAnswered: NEC ECC: Option B Recovery of business rates
This looks very much like a payment to a public authority for a charge which they are authorised to make. This being the case then it would be a separate Defined Cost and not covered by the People...
View ArticleNEC ECC: Are non-job specific items disallowable
Currently working under an Option C Are non job specific items allowable or disallowable costs? Items such as purchasing NEC Contracts, Guidance Notes and the like Clients Argument - Disallowable...
View ArticleAnswered: NEC ECC: Are non-job specific items disallowable
If they are used to Provide the Works they I don't see why they can't be a valid Defined Cost where the documentation is specific to the project, that is Main Option C, rather than the entire suite of...
View ArticleNEC ECC: Option A delayed start - claim for equipment held on standby off site
PM has requested quotations for costs associated with delayed start. Contractors EWN and correspondence identified off-site equipment held pending instruction to access the works. CECA rates in...
View ArticleAnswered: NEC ECC: Option A delayed start - claim for equipment held on...
There are, in my view, two ways to approach this; a strict view on the contract and a broader "first principles" review. Under a strict contract view presumably they value at nil because the first part...
View ArticleAnswered: NEC ECC: Are non-job specific items disallowable
First, I absolutely agree it is not disallowable, it falls under no heading of disallowable cost. The problem is, and here I am going to disagree with Andrew, these items are clearly overhead items and...
View ArticleAnswered: NEC3 Option A: Contracotr is claiming Prolongation costs greater...
I think I slightly disagree with Neil here. I think it is relevant to understand what the original prelim cost was. 63.1 for assessing compensation events provides that the changes to the Prices are...
View ArticleNEC ECC: Change in the WI between tender and construction - what should have...
At tender the WI (drawings) included a note regarding "drainage connections will be rationalised during construction where possible". The connections shown were into the main combined sewer for which...
View ArticleNEC ECC: Option B Recovery of business rates
The Contractor pays business rates on the site establishment (accommodation, stores and parking). The land that he uses belongs to the Client who provides it free of charge. For a compensation event...
View ArticleAnswered: NEC ECC: Change in the WI between tender and construction - what...
I think the note is irrelevant as it is so vague. The Contractor should have priced for what was shown on the drawings. The issue of the rationalised construction drawings are a change to the WI which...
View ArticleAnswered: NEC ECC: If the Contractor terminates the contract under reason R16...
Termination does not mean that the contract ceases to exist for all purposes, any rights already accrued by the parties remain unless the termination provisions state otherwise. So in your scenario the...
View ArticleAnswered: NEC ECC: Option D, payment for the purchased equipment under SCC22...
I would suggest seeking to change the contract in accordance with clause 12.3 and re-introduce SCC items 23 and 24 if an open market rate cannot be agreed on. Alternatively you could agree to use SCC...
View ArticleNEC ECC: Health and safety equipment charges under Option B
A quotation was requested by the client and subsequently returned by the Contractor for works outside of the BoQ (option B being used) and Works Information. The works mainly involved the provision of...
View Article