NEC ECC: Can the client limit payment to agreed target value only on option C.
We are working on an NEC3 Option C with numerous CEQ's submitted but most not agreed. The Client have implied that they are behind but equally, they have been advised by us that they are 'out of time'....
View ArticleNEC ECC: Termination for any reason
Clause 90.1 of the NEC 3 ECC Contact allows an Employer to terminate for any reason. Are there any requirements that they must do so in good faith etc? Or can it be at will for for any reason at all...
View ArticleAnswered: NEC ECC: Can the client limit payment to agreed target value only...
The standard form operates on the basis that, in simple terms, the Contractor is paid PWDD less disallowed cost until Completion when an initial assessment of the Contractor’s share is carried out and...
View ArticleAnswered: NEC ECC: If an area of the Site physically changes post award of...
Very clearly the intent of the Client/Employer to transfer this risk to the Contractor. By deleting these clauses the Contractor has no way of notifying this as a compensation event and therefore this...
View ArticleNEC ECC: If an area of the Site physically changes post award of the contract...
If an area of the Site physically changes post award of the contract who carries the risk? Cl. 60.1(12), 60.2 & 60.3 are all removed from the contract.
View ArticleAnswered: NEC ECS: Risk allocation with Contractor provided service
It doesn't help that there is no definition of what 'setting out' means in your contract, but I would suggest that it refers to providing a marked reference of the design on Site to facilitate the...
View ArticleAnswered: NEC ECC: Does the Supervisor role need to be independent to the...
It can be one and the same or different. The choice is personal preference.
View ArticleAnswered: NEC ECC: Is a quotation still required following agreement on a cl....
Thanks Jon(and thanks for pointing out) - yes I need to caveat my answer which I slightly rushed. It also depends now if you are on NEC3 or NEC4. NEC3 first of all. It depends if this is an Employer...
View ArticleFIDIC Red Book: Can the Engineer issue interim Determination under FIDIC 1999...
The Contractor has submitted a interim EOT for the period of 3 months against the continuing delay event by the Employer subject to submission of final claim after completion of the event. Please...
View ArticleAnswered: NEC ECC: Works Information and assumptions made at tender
Usually if the Contractor submits any form of proposal with their tender it would be entered in Contract Data Part 2 as Works Information for the Contractor's design. Any contract condition amendments...
View ArticleAnswered: NEC ECS: Subcontract vs Purchase Order
Unless the Purchase Order has been issued as, and is stated as, a supplementary agreement to the subcontract then it does not supersede the contract and has no bearing on the subcontract terms and...
View ArticleAnswered: NEC ECS: The PC cannot provide safe access/egress to the site due...
This is often a disputed issue as wind is not considered as one of the 'standard' weather measurements for most projects. That said, however, the likely reason why you didn't work was due to not being...
View ArticleFIDIC Yellow: Is contractor liable to do anything under IFC in FIDIC yellow...
Contractor has to continually satisfy the engineer‘s requirements which comes from IFC. The cost to the Contractor is getting bigger. Is Contractor entitled to raise a claim?
View ArticleAnswered: NEC4 ECC: Option A - Do we have to supply Employer with ACWP & CPI...
No obligation for you to do so unless it is a specific requirement within the Works Information. You can share it if you wish to (and for relationship purposes you may choose to anyway) but not...
View ArticleNEC ECC: In a CE, is the full cost of the material recoverable or is the...
We have a situation where a PMI has been issued changing the Scope to include new work. The work is completely new and different to everything else on the project and there is a very small quantity of...
View ArticleNEC ECSC: Is there such thing as loss of profit?
A delay encountered on an NEC3: ECSC. Contractor submits a CE quotation with a sum under item 'Defined Cost of loss of Profit'. Is there any provision under this Short Contract for loss of profit?...
View ArticleAnswered: NEC ECC: In a CE, is the full cost of the material recoverable or...
Disallowed cost does not apply under Option B. It is more relevant to the definition of Defined Cost under target cost contracts. Under Option B, Defined Cost is the cost of the components in the...
View ArticleAnswered: NEC ECSC: Is there such thing as loss of profit?
To answer your query, the Defined Cost is a defined term and defined in 11.2 (5). The definition has no heading for 'Defined Cost of loss of Profit', so this is not an allowable cost. However, the...
View ArticleNEC ECC: conflict in Works Information
There is a minor conflict for an item in the Works Information where one document states a completely different (and lower quality) product than all the rest of the Works Information. The Bill...
View ArticleNEC ECC: Quality Management 40.2
I have a NEC4 ECC contract and the contractor has not provided a Quality Management Plan. As the PM what can be done about this please?
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