Answered: 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 ArticleJCT: D&B Subcontact which is fixed price lump sum can works no longer...
We have a fixed priced lump sum order to construct a road formation, however following the subsequent CBR tests the stone is no longer required as indicated on a revised drawing. However there has been...
View ArticleNEC ECC: Representation of compensation event on a programme
A Contractor submitted a 1st Clause 32 programme with a number of implemented/non implemented CEs. Each of the CEs are shown as a number of activities, linked within/out with the CE WBS. This makes it...
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 ArticleNEC ECC: PM's reply to a programme re-submission
When a Contractor re-submits a programme after addressing the reasons why it was not accepted, is he doing so in accordance with clause 32.2 bullet 1, clause 13.4 or both? Considering this, when should...
View ArticleNEC ECC: Option A - Activity Schedule: Can quantities mentioned in Works...
The Works Info includes a length of trench for pipework, described as approximate in the Works Information. This guide chainage quantity is also split between two identical activities on the Activity...
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.
View ArticleFIDIC Red Book: Clause 20.1 and Determination
Sub-clause 20.1 indicates in the 6th paragraph that the Engineer may make detail comments if the Contractor's claim is disapproved. Two paragraphs later, sub-clause 20.1 states that the Engineer...
View ArticleNEC3 PSC Compensation Events
Clause 65.2 of the NEC3 PSC Option E states: 'The assessment of a compensation event is not revised if a forecast upon which it is based is shown by later recorded information to have been wrong' Does...
View ArticleAnswered: NEC ECC: Honeymoon period from damages?
Funnily enough reviewed that exact principal in a contract only last week for a project I am about to run a joint NEC workshop for. The Client (it is NEC4) has amended contract data part 1 delay...
View ArticleAnswered: NEC3 PSC Compensation Events
Under an option E contract, the Prices is effectively a forecasting estimate of no contractual significance in terms of what the Contractor or Consultant gets paid. Consequently, a quotation with a...
View ArticleAnswered: NEC ECS: Verbal instructions
This is a prime example of why NO one should ever act on a verbal instruction. 13.1 requires any such instruction to be in writing, and then IF this instruction is a reason under 60.1 as to why it is a...
View ArticleAnswered: NEC ECC: Quotation for a compensation event notified under Clause...
The Contractor should ask the Project Manager for a PM assumption (under 61.6) as to when they are to assume the access will resume again, otherwise how can they issue a quotation. Even if it was given...
View ArticleAnswered: NEC ECS: How to build a global claim
This is a great question to play "spot the errors" with. Can I summarise with a list of errors: 1. There is no such thing as a global extension of time claim 2. Contractor shouldn't give the...
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