NEC3 ECC: Changes to the Works Information / relationship with Completion -...
I am on a project which is nearing completion. Towards the end of the scheme a PMI was issued for some additional works along with a request for a quotation. Prior to the issue of the PMI, during...
View ArticleNEC3 ECC: Subcontractor Payments - Items added to the Application
A subcontractor has submitted their monthly application. They are on a Option B. They have added lines in below the BOQ items and have called these Compensation Events, even though this application is...
View ArticleAnswered: NEC3 ECC: Title of equipment included in defined cost
Interesting question. The definition of Equipment 11.2(7) makes it clear that these are items used by him to Provide the Works and which the Works Information does not require him to include the works....
View ArticleAnswered: NEC3 ECC: Under the SSCC (option C) are lunch breaks payable at the...
Under main Option C Defined Cost for payment is usually the SCC not the SSCC? The key here I think is what are you paying the staff? Staff are normally paid for working a 7.5 or 8 hour day with an...
View ArticleAnswered: NEC3 ECC Option B Cl60.4 CE on total quantity
The first bullet point makes it clear that a difference which arises from a change to the Works Information is always a compensation event. If this is the case then we are left with two tests which...
View ArticleAnswered: NEC3: Can the employer act as the supervisor
The Supervisor can be an in-house person from the Employer organisation or someone from outside.
View ArticleAnswered: NEC3 ECCCould additional work be instruction after Completion –...
Only real negatives to the Employer to instruct CE's after Completion is that the Contractor will not be pushed to carry out the works in a certain timescale, as they will no longer be threatened with...
View ArticleAnswered: NEC3 ECC: Correcting a defect - who pays for the associated access...
The costs associated in providing access to allow the Contractor to correct a notified Defect after Completion of the whole of the works falls on the Employer in an unamended ECC contract.
View ArticleAnswered: NEC3 ECC: What opportunity is there (if any) within the contract to...
You are not specific as to what these additional costs are. However in the NEC any contra charge would be subject to the Notice of Intention to Pay Less (Y2.3) HGCR Act 96. You have to have a basis...
View ArticleAnswered: NEC3 ECC: Changes to the contractor's design, is this a CE?
Firstly the C should not proceed at risk. Clause 21.2 last paragraph makes it clear that the C does not proceed with the relevant work until the PM has accepted the design. This is designed to avoid...
View ArticleAnswered: NEC3 ECC: How should PM deal with argument over who is responsible...
I agree with everything that Glenn says below. On the question of whether the Contractor should already know that they are responsible for designing the steel work or not, clause 20.1 says "The...
View ArticleAnswered: NEC3 ECC: Ambiguity between Contractor's design/EmpLoyers WI.
Very simple this one. You don't say if the Contractor's design has been "accepted" by the Project Manager, but it makes no difference to the answer. 1) PM notifies to Contractor ambiguity between Works...
View ArticleAnswered: NEC3 ECC: What are the best practices for mobilising to use option C?
For me, the big one would be setting up common and open book arrangements in terms of what you expect to be presented to justify Defined Cost on a monthly basis; and what you records want easy access...
View ArticleAnswered: NEC3 ECC: Option D - Total of the Prices
A change in the Works Information is a compensation. Main Option B clause 60.4 and 60.5 are for compensation events which arise by virtue of using a Bill of Quantities. Clause 60.4 is essentially a...
View ArticleAnswered: NEC3 PSC Option E Budget Cost change, Compensation Event?
An unamended PSC Main Option E is a Time based contract. Compensation events are there only for budgeting and monitoring purposes. The two key definitions are: 11.2 (16) The Price for Services Provided...
View ArticleAnswered: NEC3: Employer has terminated Contractor - does this mean...
Clause 92 procedures on termination clause 92.2 sets out the procedure on termination. P2 states that the Employer may instruct the Contractor to leave the Site, remove any Equipment, Plant and...
View ArticleAnswered: NEC3 ECC: Impact of quantities being stated in the Works...
The definition of Works Information 11.2(19) is information which either - specifies and describes the works or - states any constraints on how the Contractor Provides the Works In this instance...
View ArticleAnswered: NEC3 ECC: option D - The Prices with regards to final assessment
You are largely right in that you have to measure twice : - firstly, to keep track of the target Prices as this is the fulcrum around which the incentive mechanism operates; and - secondly, to keep...
View ArticleAnswered: NEC3 ECC: Interpretation of clause 64.2
Under clause 65.1, first bullet if the PM agrees with a quotation, then he or she "notifies his acceptance of the Contractor's quotation". So if compensation event affects time to some extent, the the...
View ArticleAnswered: NEC3: Is a programme submitted as part of a quotation submitted for...
It is not the intent that a programme submitted as part of the quotation ever becomes the Accepted Programme once the quote has been accepted/implemented. If you think about it, it wouldn't make sense...
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