Answered: NEC ECC: Recovery of full time staff costs in Compensation Events
Slightly surprised (but I will go and do a review) that you feel there is more than one school of thought on the principle of this answer as I think our experts will have a common answer to this. It...
View ArticleAnswered: NEC ECS: Can Liquidated Damages be taken from Retention?
Yes, that is what the retention is for.
View ArticleAnswered: NEC3 ECC - Substantial Decrease in Quantities
There are contract provisions -see option B clause 60.4.provided the reduction satisfies the criteria stated in the clause. In this case, from what you have said - there is no inutructuction changing...
View ArticleNEC ECC: Option C - Disallowed Costs
NEC ECC Option C: Specialist Site 3D Surveying – Cost disallowed by the Client We have employed a specialist surveying subcontractor to carry out a Ground Penetration Radar survey to locate services,...
View ArticleAnswered: NEC ECC: Withheld Monies - Not Disallowed Cost - Option C
Just to add to Neil's answer, the Project Manager has no right to withhold amounts due on the basis of a subjective opinion that something may or may not apply. The contract gives the Project Manager...
View ArticleNEC ECC: Recovery of full time staff costs in Compensation Events
Contract is Option A. The Contractor has several staff who are employed full time within the Working Area. A Compensation Event occurs which involves several of these full time staff working on the...
View ArticleAnswered: NEC ECC: Capturing Minor Delays under Option C
The only way to get recovery for any event would be to notify each minor access delay you notify as a compensation event so that it can then be assessed on its own merit. If there was only a few of...
View ArticleNEC ECS: Can Liquidated Damages be taken from Retention?
Following an error, the only amount due to a Subcontractor is their retained 5%. They are due to pay liquidated damages as they were late against 2 sectional completion dates. Can the liquidated...
View ArticleAnswered: NEC3 ECC Option A – Weather Risk in Compensation Event Quotations
Any compensation event quotation should include risk allowances for cost and time that have a significant chance of occuring and are at the Contractor's risk. This would include weather that is below...
View ArticleAnswered: NEC ECC: Can the Client change your fee percentage?
It sounds a mess! If the standard form has not been amended by Z clause(s) then the default assessment of compensation events remains as Defined Cost (the change in Defined Cost due to the CE) + Fee....
View ArticleAnswered: NEC3 PSC: X9 - transfer of intellectual property rights
If the contract is a PSC between an Employer and a Consultant, then the Consultant is the Consultant irrespective of whether that organisation's main business is 'contracting' and irrespective of...
View ArticleAnswered: NEC ECC: Can a CE introduce a new contractual Sectional Completion?
In short, the answer is 'No' as you would be making changes to the Contract Data which neither the Employer or Project Manager has the contractual authority to agree to. If you do want to do it, it...
View ArticleAnswered: NEC ECC: Option A Substantiation of rates
For compensation events, the change in the Prices = the change in Defined Costs + Fee - see clause 63.1. So original tendered rates do not apply in calculating this change unless the Project Manager...
View ArticleAnswered: NEC4 ECC Option C - Inspection of records of Defined Cost
It is deliberately defined a bit vaguely because what is appropriate will vary from contract to contract : it could be by work type, by subcontract, by cost classification e.g. staff costs or, as you...
View ArticleAnswered: NEC ECC: Representation of compensation event on a programme
It is fine and correct for their "clause 32" revised programme to show the cumulative effect. However, their individual CE quotations should be including a programme to demonstrate the specific effects...
View ArticleAnswered: NEC ECC: Does the omission of an activity in an Option A contract...
No. If the omitted works are on the critical path then it will bring forward planned Completion, and any "prelim" type savings be included within the CE quotation. However, it does not move Completion...
View ArticleAnswered: NEC ECC: Any liability issued defining quantities within an...
The risk of errors in the activity schedule remain with the Contractor. The activity schedule is not Works Information. Changes in the wording of quantity in the activity schedule on their own are not...
View ArticleAnswered: NEC ECC: PM's reply to a programme re-submission
If a programme is rejected (and now under NEC4 it is very clear they have to state the reasons why in enough detail that allows the Contractor to correct the submission) the Contractor submits the...
View ArticleAnswered: NEC ECC: Option A - Activity Schedule: Can quantities mentioned in...
The activity schedule is not Works Information (or Scope now under NEC4) so a different description or quantity in the wording of the activity schedule does not itself give rise to a compensation event.
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