Answered: NEC ECC: Switch date for assessing time in a compensation event
The "switch date" under NEC3 which is actually given the name "dividing date" in NEC4 is either when the Project Manager gave the instruction, or for all other events when the date of the notification...
View ArticleAnswered: NEC ECC: Can PM extend period to assess quote once they have been...
He or she can clearly ask, but the 'asking' is outside of the contract rules as would your acceptance of unless - and this seems a bit over the top - the Parties to the contract i.e. the Employer...
View ArticleAnswered: NEC3 ECC: Fees applied under ECI Stage One - Option C, WAO/H or...
When reimbursing the (Sub)Contractor's Defined Costs under options C, D or E, the full Schedule of Cost Components is always used (and it is the default for assessing compensation events unless it is...
View ArticleAnswered: NEC TSC: Under option A, Option X1 - Adjustment Calculation for...
I would suggest that you apply the PAF calculation that is 'current' at the time you make the assessment, that is when you actually assess the quotation. For example, the payment assessment date may be...
View ArticleAnswered: NEC ECC: Effects of IR35 Legislation
IR35 refers to the Inland Revenue (now HMRC) press release which was issued on 09 March 1999. This outlined plans to clamp down on the growing use of Personal Service Companies (PSC), where the...
View ArticleAnswered: NEC ECC: Option A - Drainage pipes are too narrow and larger drains...
If the Employer's Works Information has specified what pipe widths are to be used and this needs changing for the works to be functional, the Project Manager needs to instruct a change to the Works...
View ArticleAnswered: NEC ECSC: Indemnities Cl.81.2
I stress I am in no way an expert in insurance, but from looking at the clauses it does seem that the Employer is justified as: - they have "costs payable" arising from or in connection with you (not)...
View ArticleICC Target Cost Contract: Disallowed costs prior to completion?
Under the 2018 ICC Target Cost Contract can the Engineer disallow costs related to defects prior to completion on the grounds that it is a breach of contract. If yes should the cost of the initial work...
View ArticleNEC ECC: Contractor's Overhead
Under option C, If the Contractor's planner who 4 out of 5 days a week spent in head office but has been charged full time to the project. How does the contract deal with this and what should be paid...
View ArticleAnswered: NEC ECC: Actual Defined Cost
The only reason why the target Prices might increase that I can think of are if one or a number of secondary options are specified. For example: X1: Price adjustment for inflation might, albeit...
View ArticleAnswered: NEC ECC: Contractor's Overhead
Under NEC3 the cost of People is dependent upon the following conditions; - It is incurred in order to Provide the Works, - They are working within the Working Areas. Where the above are not satisfied...
View ArticleAnswered: NEC ECC: Quotation for additional work
Contractor should produce the quotation in line with the schedule of cost components in enough detail that convinces the Project Manager that it is a fair quotation with a sensible amount of risk...
View ArticleNEC ECC: Error in compensation event quotation and assumption
If Contractor: 1) made their own error in estimation of material quantity in quotation and, 2) bad weather is encountered, but quotation is accepted with "the work is assumed to carry out without...
View ArticleNEC ECC: Agreeing compensation rates
NEC3 - option A: under clause 62.1 can both parties agree to use “actual cost” for compensation events. Example - importing large amounts of fill material. Can it be agreed a rate per lorry load and...
View ArticleAnswered: NEC ECC: Supervisor missed a defect, what is their liability?
Acceptance by the Project Manager or the Supervisor under the contract doe snot change the Contractor liability to provide the works or for their liability for their design. Whilst the Supervisor...
View ArticleNEC ECC: Compensation Event assumption
if quotation is accepted with "assumed work can be unaffected by poor weather" but bad weather is encountered. Is it a CE?
View ArticleAnswered: NEC ECC: Staff cost not allowed in CE assessment due to no change...
A compensation event is not something that is included in the Contractor's tendered price and if it occurs then they should be put back in the position they would have been had the event not occurred....
View ArticleAnswered: NEC ECC: Staff cost not allowed in CE assessment due to no change...
I agree with everything Andrew says below and add a comment on the tone of your last para. You are right in what you say, but clause 63.1 allows for CHANGE in Defined Costs plus Fee as a result of the...
View ArticleAnswered: NEC ECC: Agreeing compensation rates
I don't think clause 62.1 is the relevant clause as you seem to be concerned with different ways of assessing the compensation event as opposed to how the work is done. I'll point you at two other...
View ArticleAnswered: NEC ECC: Supervisor missed a defect, what is their liability?
Glenn is absolutely right with regard to the Supervisor and Contractor's liabilities under the NEC3 Engineering and Construction Contract. If the error by the Supervisor was so obvious, then the...
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