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A Practical Guide to the NEC4 Engineering and Construction Contract

Michael Rowlinson

ISBN13: 9781119522515
Published: November 2018
Publisher: Wiley-Blackwell
Country of Publication: UK
Format: Hardback
Price: £93.95



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Inside A Practical Guide to the NEC4 Engineering and Construction Contract, readers will find chapters on the background of the NECECC; contract data and other documents; the‘spirit of mutual trust’; all of the individuals involved in the process (eg: project managers, clients, supervisors, subcontractors, etc.); communication issues, early warnings and other matters; quality management; titles; dealing with timing; payment processes; cost components; compensation procedures and assessments; dealing with terminations; dispute resolution; completing the contract and more.

  • A practical guide to the application of the procedures contained in the newly issued NEC4 Engineering and Construction Contract
  • Provides detailed guidance on the use of the agreement, which is claimed to offer increased flexibility, improved clarity and greater ease of use
  • Written specifically for people actually using and administering the NEC contracts
  • Features 3 appendixes covering tables of clause numbers, case law and statutes; employer’s, project manager’s, supervisor’s, contractor’s and adjudicator’s actions; and communication forms and their uses.
First launched in 1993, the NEC has become one of the UK's leading standard forms of contract for major construction and civil engineering projects, making A Practical Guide to the NEC4 Engineering and Construction Contract a must-have resource for any contractor using the latest version of this contract.

Subjects:
Construction Law
Contents:
1. Introduction 1
1.1 General 1
1.2 Mechanics not law 2
1.3 A simple formula for understanding a contract 3
1.4 Mandatory or discretionary 4
1.5 Conditions precedent 4
1.6 Note on use of uppercase in keywords and phrases 5
2. Background to the NECECC 7
2.1 The background: First edition 7
2.2 The second edition 8
2.3 The third edition 9
2.4 The third edition (reprinted) 9
2.5 The fourth edition 9
2.6 Endorsement of NEC3 by the Office of Government Commerce 10
2.7 Endorsement by the Development Bureau, HKSAR Government 11
2.8 General philosophy: Aims and objectives 12
2.9 Flexibility 12
2.10 Clarity and simplicity 13
2.11 Stimulus to good management 14
2.12 Other characteristics 15
3. The Options: An Overview 17
3.1 General arrangement of the ECC 17
3.2 Other documents referred to 19
3.3 Contract Data 20
3.4 The published documents 20
3.5 Main Options: General outline 21
4. Spirit of Mutual Trust and Cooperation 25
4.1 Introduction 25
4.2 The clauses 25
4.3 What does it mean? 27
4.4 Practical issues 28
5. The Cast of Characters 33
5.1 Introduction 33
5.2 The Client 33
5.3 The Project Manager 35
5.4 The Supervisor 38
5.5 The Contractor 38
5.6 The Senior Representatives 39
5.7 The Adjudicator 40
5.8 The Tribunal 41
5.9 The Dispute Avoidance Board 41
5.10 Subcontractors 42
5.11 ‘Others’ 42
5.12 Named Suppliers 43
5.13 Designers 43
5.14 Principal Designer 44
5.15 Principal Contractor 45
5.16 Practical issues 45
6. Communications, Early Warnings and other General Matters 47
6.1 Introduction 47
6.2 Communications:The clause 47
6.3 Communications: Practical issues 49
6.4 Early warnings: The clause 51
6.5 Early warnings: Practical issues 53
6.6 Other matters:The clauses 55
6.7 Other matters: Practical issues 59
7. The Contractor’s Main Responsibilities 61
7.1 Introduction 61
7.2 Providing theWorks 61
7.3 Contractor’s design 62
7.4 Information modelling 66
7.5 Other matters 68
7.6 Practical issues 72
8. Subcontracting 75
8.1 Introduction 75
8.2 Definition of a Subcontractor 75
8.3 The core clauses 76
8.4 Provisions in the Main Options 76
8.5 Practical issues 77
8.6 Options for forms of subcontract in the NEC4 family 78
9. Quality Management 81
9.1 Introduction 81
9.2 Quality management system 81
9.3 Tests and inspections 82
9.4 What is a Defect? 84
9.5 The Defect procedure 84
9.6 The Defects Certificate 86
9.7 Uncorrected Defects 87
9.8 Practical issues 87
10. Title 91
10.1 Introduction 91
10.2 The core clauses 91
10.3 Practical issues 92
11. Liabilities and Insurance 95
11.1 Introduction 95
11.2 The core clauses 95
11.3 Secondary options 98
11.4 Practical issues 99
12. Time 101
12.1 Introduction 101
12.2 The programme: Contents 102
12.3 The programme: Submitting, accepting and revising 107
12.4 The programme: Practical issues 110
12.5 Starting and finishing 118
12.6 Other matters 121
12.7 Secondary Options related to Time 124
12.8 Practical issues 126
13. Payment 131
13.1 Introduction 131
13.2 The payment process 131
13.3 Payments in multiple currencies 134
13.4 Interim payments – The amount due and the Price for Work Done to Date 135
13.5 Supporting documents and records 145
13.6 Final assessment 148
13.7 The Contractor’s share 150
13.8 The Contractor’s share: Practical issues 152
13.9 Special provisions for the United Kingdom 153
13.10 Related Secondary Options 157
13.11 Practical issues 162
14. The Schedules of Cost Components 169
14.1 Introduction 169
14.2 The Schedule of Cost Components 169
14.3 The Short Schedule of Cost Components 174
14.4 Application to Subcontractors 175
14.5 Practical issues 176
15. Compensation Events:Theory and Events 179
15.1 Introduction 179
15.2 The theory 179
15.3 The events 181
15.4 Practical issues 196
16. Compensation Events: Procedures 199
16.1 Introduction 199
16.2 Notification by the Project Manager 200
16.3 Notification by the Contractor and the Project Manager’s reply 203
16.4 Other matters associated with notifying compensation events 206
16.5 Quotations: Substance 208
16.6 Quotations: Submission and reply 210
16.7 Assessments by the Project Manager 215
16.8 Proposed instructions 217
16.9 Implementing compensation events 218
16.10 Practical issues 219
17. Compensation Events: Assessment 227
17.1 Introduction 227
17.2 Changes to the Prices 228
17.3 Changes to the Completion Date and Any Key Dates 232
17.4 Project Manager’s assumptions 234
17.5 Other related matters 236
17.6 Practical issues 238
18. Termination 243
18.1 Introduction 243
18.2 Reasons for termination 243
18.3 Secondary Option X11 247
18.4 Implementing termination 248
18.5 Procedures after termination 248
18.6 Assessing the amount due after termination 250
18.7 Practical issues 252
19. Resolving and Avoiding Disputes 255
19.1 Introduction 255
19.2 Option W1 256
19.3 Option W2 261
19.4 Option W3 267
19.5 Practical issues 270
20. Secondary Options 273
20.1 Introduction 273
20.2 X2: Changes in the law 273
20.3 X4: Ultimate holding company guarantee 274
20.4 X12: Multiparty Collaboration 274
20.5 X13: Performance bond 279
20.6 X17: Low performance damages 280
20.7 X18: Limitation of liability 280
20.8 X20: Key Performance Indicators 281
20.9 X21:Whole Life Cost 282
20.10 X22: Early Contractor Involvement 283
20.11 Y(UK)3:The Contracts (Rights ofThird Parties) Act 1999 288
20.12 Z: Additional conditions of contract 288
20.13 Practical issues 289
21. Completing the Contract Data 291
21.1 Introduction 291
21.2 Purpose and form of the Contract Data 291
21.3 Contract Data Part One 292
21.4 Contract Data Part Two 304
21.5 Practical issues 309
22. The Supporting Documents: Need and Content 311
22.1 Introduction 311
22.2 Scope 312
22.3 Site Information 324
22.4 Practical issues 325
Bibliography 329
Appendix 1 Tables of Clause Numbers, Case Lawand Statutes 331
Appendix 2 Tables of Client’s, Project Manager’s, Supervisor’s, Contractor’s, Senior Representatives, Adjudicator’s, Dispute Avoidance Board and Tribunals Actions 341
Appendix 3 Tables of Communication Forms and Their Uses 379