Answered: NEC ECC: Final Account time frame.
The normal payment timescales - i.e. the assessment interval - and mechanisms continue on after the Completion Date. So if you make an application and claim the full amount, the the PM will, in his...
View ArticleNEC3 ECC: 11.2 (22) - Inclusions of preparing a quotation
Under NEC3, the Project Manager has rejected compensation events and is carrying out his own assessments for compensation events on the basis the Contractor has included amounts for people for...
View ArticleAnswered: NEC ECC: Option B, Contract Data part 2 fee percentages
By : - 'plant' I assume you mean 'Equipment' in NEC speak - 'materials' = Plant and Materials. and staff and about are both counted as People The calculation would be : Staff + labour = £4,000 x 1.15...
View ArticleNEC3 PSC Expenses - Target Cost
I'm looking for some practical advice on how expenses should be managed under an NEC3 PSC Option C contract. I see from previous answers on this forum that expenses, as stated in Contract Data Part 2,...
View ArticleAnswered: NEC ECC: Providing additional Site Information
You can issue them the new Site Information which they will be able to use to take into account future compensation events in assessing risk. However, the original contract works and price were based...
View ArticleNEC ECC: Can One Event Result in Two Compensation Events?
A contractor is disrupted for approx. two weeks during the first quarter of a project, but still ahead schedule. This results in direct field labour working inefficiently for the two week period. The...
View ArticleNEC ECC Option C - Does the Contractors 'Risk Allowance' reduce the Target...
If a Contractor has priced a sum of money for risk into the Target Price and they do not expend this, is it removed from the overall Target Price? Also, does the Project Manager have the right to...
View ArticleNEC ECC: Cancelling Compensation Events
1. CE was notified by Contractor (p 1), PM requested quotation (p 2), Contractor submitted quotation (p 3). Employer not in agreement and it was discussed to "cancel". Do I do a part 4 and state the...
View ArticleAnswered: Using CECA rates for plant equipment.
I have to make a lot of assumptions here : 1. That you are under option A or B as a standard schedule is only used for the Defined Cost of Equipment under these options and then adjusted by the...
View ArticleAnswered: Option X7 Delay Damages
To quote 'Keating on NEC3': if "no sum is inserted in the "amount per day" column then it is probable the Employer can recover neither liquidated delay damages or general damages".
View ArticleAnswered: Claiming for losses when scope of work is reduced
Yes. For a start, I assume that the date for issue of the drawings was either in the Works Information &/or the Accepted Programme. That would be a compensation event under clause 60.1 (5). You...
View ArticleAnswered: NEC Clause 60.1(12)
Physical conditions is not limited to just ground conditions and, for instance, may apply to an existing building for; the discovery of asbestos, dimensions not being as shown on as-built drawings,...
View ArticleNEC3 ECC: Option E Fee on Fee
I am currently managing an Option E Main Contract which has a 15% Subcontract fee percentage in. We have Subcontracted a company to provide labour costs. Their direct fee percentage is 15%. They apply...
View ArticleNEC ECC: Defined Cost - Plant - Held in wait for start
Background: main Contract is ECC Option C, each Project is a CE: We have a project (CE) that had a critical start date which was delayed after the CE was accepted by the client. An EWN was raised...
View ArticleNEC3 ECC: Can the Employer terminate for budget cuts?
You are the Project Manager on the construction of a new asset. The tendered total of the Prices was approximately £10m, ECC Option A was used with secondary Options X1, X2 and Y(UK)2 incorporated. The...
View ArticleAnswered: NEC ECC: Is a PMI always a Compensation Event?
Examples of PMIs which are not compensation events : - an instruction to attend an early warning meeting (clause 16.2 of NEC3 ECC) - an instruction to remove a person (clause 24.2 of NEC3 ECC) - an...
View ArticleNEC ECC: When is a defined cost a defined cost
Background: Option C contract each project is a CE, each with sectional completion. Project (CE) value was agreed with client and an approx 2 1/2 month duration into project before project was stopped...
View ArticleAnswered: NEC ECC: Defined Cost - Plant - Held in wait for start
I think firstly, although you state that each Project is a compensation event, they are still just a part of the overall scheme of works under the main contract and as such can't be treated any...
View ArticleNEC ECC: Using CECA rates for plant equipment.
Should CECA rates be used for the productive time on site or the time actually whilst on site during working hours?
View ArticleAnswered: NEC ECC: Should I lose the opportunity to improve on programme...
The simple answer is that it IS a compensation event, if shown on the Accepted Programme and the Employer is required to provide what is shown. The time effect is then calculated in accordance with...
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