NEC3 ECC - Is there a limit to the value of Compensation Events?
I have been informed that the value of compensation events cannot exceed 50% of the Contract value? However I cannot find this within the contract, can anyone confirm if this correct? Many thanks.
View ArticleAnswered: NEC ECC: Option A - Can the Employer recover 3rd Party costs...
I see no where in the contract that will allow the Employer to recover that cost, so unless there is a Z clause that states otherwise I do not see that they can. The only right to recover money from...
View ArticleNEC ECC: Looking for a couple of example KPI's specific to the Contractors...
Looking at driving behaviours around PROG thinking that +/- accepted PROGs can be somewhat subjective i.e. if we reject on the basis that the TRA is unrealistic this might not be shared by the...
View ArticleAnswered: NEC3 ECC - Is there a limit to the value of Compensation Events?
For public sector clients there are limits set out in the Public Contracts Regulations 2015 and it's possible that the source of this suggestion is basing the assertion on Regulation 72(1)(c)(iii) from...
View ArticleNEC ECC: Under an Option C contract, does the defined cost of "Equipment"...
The SCC sets out how equipment costs can be claimed depending on how the equipment has been procured, i.e. external hires or internally owned equipment etc. Are general repair/maintenance costs which...
View ArticleAnswered: NEC ECC: Can several pricing options be combined under one contract
In theory you probably could split different pricing options to different sections of work. However, it would be very complicated to draft provisions that would manage that effectively and far easier,...
View ArticleAnswered: NEC ECC: Can several pricing options be combined under one contract
I disagree with Rob ! I think it would be relatively easy to draft something, BUT I think it would potentially be quite hard to administrate as, with the best will in the world : - the Contractor would...
View ArticleAnswered: NEC ECC: Under an Option C contract, does the defined cost of...
These are potentially covered under Equipment 25 of SCC (NEC3 & NEC4 ECC) as "Payments for the purchase price of Equipment which is consumed." However, as with all Defined Costs "only if it is...
View ArticleNEC ECC: Is a PM instruction to resolve an ambiguity always a compensation...
The Contractor is proposing a form of construction that the PM considers is prohibited within the Works Information - prohibited in that the WI specifically stipulates a couple of options in terms of...
View ArticleNEC ECC: After a clause 34.1 instruction, when does recommencement...
A client has received multiple clause 34.1 deferments, in total postponing work for close on 1 yr. Each time the proposed recommencement date given in the instruction has been within 13 weeks but not...
View ArticleNEC ECC: Option C - Can non-project specifIc training costs be disallowed?
I am currently the Employer under an NEC3 ECC Option C Contract. The Contractor is required to provide me with a qualified workforce, however, I am in receipt of costs associated with basic training...
View ArticleAnswered: NEC ECC: Is a PM instruction to resolve an ambiguity always a...
From your comments, it is not clear if there is an ambiguity or inconsistency. You state that the WI stipulates a couple of options but it is not clear from your comments if the WI limits the form of...
View ArticleAnswered: NEC ECC: Can payment be withheld for a time related activity that...
You have to be very care full when listing such a time related activity as an activity schedule item. Either such costs should be spread across other activities so that recovery will be progressive as...
View ArticleAnswered: NEC ECC: Looking for a couple of example KPI's specific to the...
Not quite sure what you mean by "QTE" specifically but agree that pass/fail of a programme is not necessarily a good indicator on its own. Therefore with regards to programme I would recommend a bigger...
View ArticleAnswered: NEC4 ECC: X22 - in simple terms how does ECI work
You have hit the nail on the head with any contract strategy whereby the Contractor / Consultant / Supplier knows they are in poll position in any competition. Under ECI, they naturally want the Prices...
View ArticleNEC ECC: X22 Incentive payment
With regards to X22 ECI - I am a bit confused between the terminology. I get there will be stage 1 and stage 2, where stage 2 has the notice to proceed and the agreement at that point of the Completion...
View ArticleNEC ECC: Can payment be withheld for a time related activity that can never...
The Option A activity schedule had site accommodation costs spread over the contract period as monthly activities. The site establishment was not in place until the second month of the contract. The...
View ArticleAnswered: NEC ECC: X22 Incentive payment
The Budget is the summation of the amounts stated for the items in the Contract Data. This is generally the forecast cost to be paid to the Contractor together with the forecast of other costs to be...
View ArticleAnswered: NEC TSC Termination by Employer
No. If terminating for reason R20, the Contractor is paid amounts A1 and A2 where : - A1 is (paraphrasing) for payments, in accordance with the contract, for work done to date and costs incurred in...
View ArticleAnswered: NEC ECC: Option C - Disallowed Costs
The Schedule of Cost Components does not apply because, as you say, the surveyor is a Subcontractor and therefore you are reimbursed in accordance with that subcontract - see option C clauses 11.2 (23)...
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