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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECC: Compensation Event Process

The contractual process is as follows: 1. Contractor notifies they believe something is a CE 2. PM responds as to whether they agree it is a CE or not 3. If they agree it is a CE then they request the...

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NEC ECC: Take over and Insurances

On my current site the client is about to take over the building, our expected completion date is 4 weeks beyond that (due to incomplete external works, internally its complete) Is take over the right...

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NEC ECS: Do I have to give SC programmes to the Contractor

As a Subcontractor under an Option A Subcontract, am I obliged to provide copies of the Sub-Subcontractors programme to the Contractor if I have incorporated them within my programme for acceptance ?

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NEC ECS: Acceptance of TQ changing WI - CE

ECS - Option A A subcontractor raised a TQ with an element of design. The design could’ve been adhered to but they proposed 2 alternatives with differing fittings. The design engineer (not PM) accepted...

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Answered: NEC ECC: Clarification of Ambiguities of Works Information under...

The answer is yes as, from what you have said,  there has been a change to the Works Information. This could also be a compensation event under clause 60.1 (1) which the PM should also notify, unless...

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Answered: NEC ECC: Acceptance of Contractor's Design in Option B

Contractor can proceed without design acceptance but it would be at their own risk. If it was subsequently rejected for a valid reason under the contract then any cost incurred would be down to the...

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Answered: NEC ECC : Compensation Events for Contractor's Qualifications

The contract talks about Project Manager assumptions within a quote that can be revisited (as a new CE). There is no where in the contract that says a Contractor assumption or qualification can be...

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Answered: NEC ECS: Acceptance of TQ changing WI - CE

From what you have said, it looks like the TQ proposed alternatives for the S/C design, one of which has been accepted, although not by the PM but by a design engineer.  Design acceptances are to be...

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Answered: NEC ECC: How does the terms "site" and "working areas" affect...

I'm not really sure what you are asking here, but the definition of Working Areas is important in relation to assessment of Defined Cost under the Schedule of Cost Components for the following; -...

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Answered: NEC ECS: Do I have to give SC programmes to the Contractor

No. You only have to give a programme in accordance with the contract i.e. 31.2 and 32.1 (from memory, I am on hols). If the mina Contractor wants any sub-Subcontractor programmes, then they would have...

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Answered: NEC ECC: Dispute on Non-certification of Payment

If there are no amendments to the standard text then the Contractor is not obliged to submit an application for payment.  The obligation is for the PM to make an assessment of the amount due at each...

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Answered: NEC ECC: Procedure of Assessment of a CE under Option C

The compensation event procedure for Option C is the same as it is for all main Options of the ECC and is described at clauses 61, 62, 63 and 64. The compensation events themselves (i.e. the events...

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NEC ECC: Assessment of Quotations

In ECC Option B, what contract mechanism allowed the PM to obtain a price with many uncertainties and unforeseen extra works for the Employer to make the decision? On the other hand, how can the...

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Answered: NEC ECC: Disallowed cost of Defects due to failure by Contractor to...

Yes I would agree that you are correct. That is not what that bullet is intended to cover. Indeed if they were right then it would mean any defect not complying with Works Information would be...

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Answered: NEC ECC: Provision for Key Date terminal float under a PSC

Yes you are correct. You should have an equivalent "planned Key Date" milestone like you would have a planned Completion, and it is treated exactly the same way when you assess a CE according to clause...

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Answered: NEC ECC: Understanding premium time

It looks like the 5 hours are part of the 38 hours, but worked outside 'normal hours' and therefore attract an enhanced rate, which equates to £10 an hour. The calculation should probably be something...

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Answered: NEC ECC: Assessment of Quotations

The simple answer is price in lots of risk for the risk that you identify ... and state how much you have added in for each risk e.g. due to the vague specification, I have priced for a Rolls-Royce...

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Under ECSC, how does one assess the Contractors liability for a weather event...

I have awarded an ECSC contract with defined starting date and Completion Date. At a later date I subsequently instructed additional scope as a compensation event. The work is not similar to the...

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NEC ECS: How to use Option C ECS with X25 ECI secondary clause

We’re engaging subcontractors for early contractor involvement. Will the ECS option C with X25 be an appropriate contractual and payment mechanism to complete Stage 1 and proceed to Stage 2 for one of...

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NEC ECC: Subcontracted Fee for ECC Option C

If the Contractor has missed the Subcontract Fee % in ECC Option C contract, during the assessment of CE, can the PM use SSOCC to assess if it is anticipated the Contractor needs to contract out in...

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