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The Contractor's NEC3 EEC Handbook (eBook)

Steven C. Evans

ISBN13: 9781119137528

Published: August 2017

Publisher: Wiley-Blackwell

Country of Publication: UK

Format: eBook (ePub)

Price: £65.95
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Written in plain English for contractors and their staff, this book explains how the NEC3 contract works and provides answers to common questions. It presents complicated concepts in a simple, straightforward and understandable way, focusing mainly on day-to-day use. Steven Evans, an expert with thirty years of experience in construction, considers all the provisions of the contract and explains the procedures, obligations, and liabilities contained within it.

NEC3 ECC is a process-based contract based on project management best practices. The basic philosophy behind it differs radically from the more adversarial approaches embodied by traditional contracts. While the NEC3 ECC may appear quite simple on the surface, it is often misunderstood and mismanaged by its day-to-day users. Despite the clear and urgent need for expert guides for those who use the NEC3 ECC, or who are considering adopting this increasingly popular contract, available books on the subject are highly technical and written for lawyers and professional consultants—until now. Written specifically for contractors using the NEC3 ECC contract, this book is aimed specifically at a level consistent with the knowledge and experiences of contractors and their staff.

A practical guide to the procedures in the NEC3 Engineering and Construction Contracts
Written specifically for those using and administering the contracts—not for lawyers or professional consultants
Considers all the provisions of the contract and explains the procedures, obligations and liabilities
Covers all NEC3 ECC versions and variations created by the Main and Secondary Options
Provides clear, concise, practical, and straightforward explanations of the NEC3 ECC form used by commercial and operational staff of main contractors

The Contractor's NEC3 EEC Handbook is a vital working resource for main contractors and their employees, including quantity surveyors, commercial managers, contracts managers, project managers, site managers, and estimators.

Subjects:: Construction Law, eBooks

Contents:: About the Book xiii; About the Author xv; 1. Introduction 1; Ten Things You Need to Know 1; Author’s Note 2; 2. The Contract 5; About the NEC Contract 5; Clarity and Simplicity 5; Flexibility 5; Stimulus to Good Management 6; Collaborate…or Else! 6; The Latham Report 6; The NEC3 Suite 7; Contracts 7; Flow Charts and Guidance Notes 8; The ECC Form 9; The Core Clauses 9; The Main Options 9; Option A – Priced Contract with Activity Schedule 10; Option B – Priced Contract with Bill of Quantities 11; Option C – Target Contract with Activity Schedule 11; Option D – Target Contract with Bill of Quantities 12; Option E – Cost Reimbursable Contract 12; Option F – Management Contract 13; W Clauses 13; The Secondary Options 14; X Clauses 14; Y Clauses 14; Z Clauses 15; The Contract Data 15; The Schedules 16; The Schedule of Cost Components 16; The Shorter Schedule of Cost Components 16; Formation of the Contract 16; Offer and Acceptance 16; Attestation 17; Necessary Contract Documents 17; Frequently Asked Questions 17; 3. General 19; Overview 19; Actions 19; The Employer 20; The Contractor 22; The Project Manager 27; Impartiality 32; The Supervisor 32; The Obligations 33; Identified and Defined Terms 34; (1) The Accepted Programme 35; (2) Completion 36; (3) Completion Date 38; (4) The Contract Date 38; (5) Defect 39; (6) Defects Certificate 39; (7) Equipment 40; (8) The Fee 40; (9) Key Date 41; (10) Others 42; (11) Parties 42; (12) Plant and Materials 42; (13) To Provide the Works 43; (14) The Risk Register 44; (15) The Site 44; (16) Site Information 45; (17) Subcontractor 45; (18) Working Areas 46; (19) Works Information 46; (20) The Activity Schedule (Main Options A and C Only) 49; Who Prepares the List of Activities? 49; What Should be Included in the Schedule? 50; Relationship to the Accepted Programme 50; Changes to the Activity Schedule 50; Use Under Option A 51; Use Under Option C 51; Errors in the Activity Schedule 51; (21) The Bill of Quantities (Main Options B and D Only) 52; Changes to the Bill of Quantities 53; Use Under Option B 53; Use Under Option D 53; Errors in the Bill of Quantities 54; (22) to (26) Defined Cost 54; Main Options A and B 54; Main Options C to E 54; Main Option F 55; (25) Disallowed Costs 55; (27) Price for Work Done to Date (Option A) 56; (28) Price for Work Done to Date (Option B) 56; (29) Price for Work Done to Date (Options C to F) 57; (30) Prices (Main Options A and C) 57; (31) Prices (Main Options B and D) 57; (32) Prices (Main Options E and F) 57; (33) The Total of the Prices (Option D) 57; Interpretation and the Law 57; Communications 58; Notification 59; The Project Manager and the Supervisor 60; Adding to the Working Areas 61; Early Warning 61; Ambiguities and Inconsistencies 63; Illegalities and Impossibilities 64; Prevention 64; Frequently Asked Questions 65; 4. The Contractor’s Main Responsibilities 71; Overview 71; Providing the Works 77; The Contractor’s Design 78; Acceptance of the Contractor’s Design 78; Using the Contractor’s Design 79; Design of Equipment 79; People 80; Working With the Employer and Others 81; Subcontracting 82; Other Responsibilities 84; Frequently Asked Questions 85; 5. Time 89; Overview 89; Starting, Completion and Key Dates 89; Commencement and Completion 89; Completion Certificate 90; Key Dates 91; The Programme 91; The First Programme 92; Information on the Programme 92; Acceptance of the Programme 95; Rejection of the Programme 95; Revising the Programme 96; Access to and Use of the Site 98; Instructions to Stop or Not to Start the Work 98; Takeover 98; Acceleration 99; Frequently Asked Questions 100; 6. Testing and Defects 105; Overview 105; Tests and Inspections 106; Tests and Inspections Before Delivery 107; Searching For and Notifying Defects 107; Searching 107; Notifying 108; Correcting Defects 108; Correction 108; Defect Correction Period 108; Defects Certificate 109; Accepting Defects 109; Uncorrected Defects 110; Frequently Asked Questions 111; 7. Payment 115; Overview 115; Assessing the Amount Due 115; Main Option A 116; Main Option B 117; Main Option C 117; Amounts Due to Subcontractors 118; The Cost of Components in the Schedule of Cost Components 119; Disallowed Costs 119; The Fee 120; Main Option D 120; Amounts Due to Subcontractors 121; The Cost of Components in the Schedule of Cost Components 121; Disallowed Costs 121; The Fee 122; Main Option E 122; Amounts Due to Subcontractors 123; The Cost of Components in the Schedule of Cost Components 124; Disallowed Costs 124; The Fee 125; Main Option F 125; Amounts Due to Subcontractors 126; The Prices for the Work Done by the Contractor 127; Disallowed Costs 127; The Fee 127; Unfixed Materials on Site 128; Main Option A 128; Main Option B 128; Main Options C, D and E 128; Main Option F 128; The First Programme 128; Payment 128; The Primary Legislation 129; The Secondary Legislation 129; How it Works 129; A ‘Construction Contract’ 129; The Payment Provisions 130; The Payment Notice 130; The ECC Provisions 131; Interest 132; Defined Cost 132; The Contractor’s Share 133; The Activity Schedule 134; The Bill of Quantities 135; Frequently Asked Questions 135; 8. Compensation Events 139; Overview 139; Compensation Events 140; Core Clause Compensation Events 140; Weather Measurement 146; Weather Data 146; Once in Ten Years 146; Bill of Quantity Compensation Events 149; Secondary Option Compensation Events 150; Clause X2.1 – Changes in the Law 150; Clause X12.3(6) and (7) – Changes in Partnering Information 151; Clause X14.2 – Delay in Making Advanced Payment 151; Clause X15.2 – Correction of a Defect 151; Clause Y2.4 – Suspension Under the Housing Grants,; Construction and Regeneration Act 1996 151; Compensation Event Procedure 151; Notifying Compensation Events 151; Quotations for Compensation Events 154; Assessing Compensation Events 156; Effect of the Event on Defined Cost 157; Effect of the Event on Planned Completion 158; Failure to Give Early Warning 159; The Project Manager’s Assessment 159; Exhaustive Remedy 161; Implementing Compensation Events 161; Main Option Clauses 161; Summary of Sanctions 163; Other Remedies 164; Frequently Asked Questions 164; 9. Title 169; Overview 169; The Employer’s Title to Plant and Materials 169; Marking Equipment, Plant and Materials Outside the; Working Areas 170; Removing Equipment 171; Objects and Materials within the Site 171; Frequently Asked Questions 171; 10. Risks and Insurance 173; Overview 173; Employer’s Risks 173; Contractor’s Risks 174; Repairs 175; Indemnity 175; Insurance Cover 175; Insurance Policies 176; If the Contractor Does Not Insure 176; Insurance by the Employer 177; Frequently Asked Questions 177; 11. Termination 179; Overview 179; Termination 179; Reasons for Termination 180; Procedures on Termination 181; Payment on Termination 181; Frequently Asked Questions 183; 12. Dispute Resolution (W1 and W2 Adjudication) 185; Overview 185; Option W1 185; Dispute Resolution 185; The Adjudicator 186; The Adjudication 188; Review by a Tribunal 191; Option W2 192; Dispute Resolution 192; The Adjudicator 193; The Adjudication 196; Review by a Tribunal 199; Frequently Asked Questions 200; 13. X and Y Clauses 203; Introduction 203; The X Clauses 203; X1 – Price Adjustment for Inflation 203; X2 – Changes in the Law 204; X3 – Multiple Currencies 204; X4 – Parent Company Guarantees 205; X5 – Sectional Completion 205; X6 – Bonus for Early Completion 205; X7 – Delay Damages 206; X12 –; Partnering 206; X13 – Performance Bond 207; X14 – Advanced Payment to the Contractor 207; X15 – Limitation of Contractor’s Liability for his Design to Reasonable Skill and Care 207; X17 – Low Performance Damages 208; X18 – Limitation of Liability 208; X20 – Key Performance Indicators 209; The Y Clauses 209; Y(UK)1 – Project Bank Account 209; Overview 209; Definitions 210; Project Bank Account 210; Named Suppliers 210; Payments 211; Effect of Payment 211; Trust Deed 211; Termination 211; Y(UK)2 – Housing Grants, Construction and Regeneration Act 1996 212; Overview 212; Definitions 212; Dates for Payment 212; Notice of Intention to Pay Less 212; Suspension of Performance 212; Y(UK)3 – Contracts (Rights of Third Parties) Act 1999 213; Overview 213; Frequently Asked Questions 213; 14. Z Clauses 215; Overview 215; Additional Conditions of Contract 215; Frequently Asked Questions 216; 15. Schedules of Cost Components 219; Overview 219; Schedule of Cost Components 219; Subcontractors 220; People 220; Equipment 220; Plant and Materials 221; Charges 222; Manufacture and Fabrication 222; Design 222; Insurance 222; Shorter Schedule of Cost Components 223; Subcontractors 223; People 223; Equipment 224; Plant and Materials 225; Charges 225; Manufacture and Fabrication 225; Design 225; Insurance 226; Frequently Asked Questions 226; Index 229