NEC3 Engineering and Construction Contract
October 12, 2022 | Author: Anonymous | Category: N/A
Short Description
Download NEC3 Engineering and Construction Contract...
Description
For use on projects associated with UK Shared Business Services Ltd
®
Engineering and Construction Contract This contract should be used for the appointment of a contractor for engineering and construction work, including any level of design responsibility
An NEC document
April 2013
Construction Clients’ Board endorsement of NEC3 The Construction Clients’ Board recommends that public sector organisations use the NEC3 contracts when procuring construction. Standardising use of this comprehensive suite of contracts should help to deliver efficiencies efficiencies across the public sector and promot promote e behavio behaviours urs in line with the principles of Achieving Excellence in Construction.
Cabinet Office UK
For use on projects associated with UK Shared Business Services Ltd
NEC is a division of Thomas Telford Ltd, which is a wholly owned subsidiary of the Institution of Civil Engineers (ICE), the owner and developer of the NEC. The NEC is a family of standard contracts, each of which has these characteristics: .
Its use stimulates good management of the relationship between the two parties to the contract and, hence, of the work included in the contract.
.
It can be used in a wide variety of commercial situations, for a wide
.
variety of types of work and in any location. It is a clear and simple document document – using language language and a stru structure cture which are straightforward and easily understood.
NEC3 Engineering and Construction Contract is one of the NEC family and is consistent with all other NEC3 documents. Also available are the Engineering and Construction Contract Guidance Notes, Flow Charts and Options A, B, C, D, E and F. ISBN (complete box set) 978 0 7277 5867 5 ISBN (this document) 978 0 7277 5865 1 ISBN (E (Engi nginee neeri ring ng and Co Const nstruc ructio tion n Co Contr ntract act Gu Guida idance nce Not Notes) es) 97 978 8 0 727 7277 7 59 5903 03 0 ISBN (Engineering and Construction Contract Flow Charts) 978 0 7277 5905 4 ISBN (Option A: Priced contract with activity schedule) 978 0 7277 5869 9 ISBN (Option B: Priced contract with bill of quantities) 978 0 7277 5871 2 ISBN (Option C: Target contract with activity schedule) 978 0 7277 5873 6 ISBN (Option D: Target contract contract with bill of quan quantitie tities) s) 978 0 7277 5875 0 ISBN (Option E: Cost reimbursable contract) 978 0 7277 5877 4 ISBN (Option F: Management contract) 978 0 7277 5879 8 ISBN (how to write the ECC Works Information) 978 0 7277 5907 8 ISBN (how to use the ECC communication forms) 978 0 7277 5909 2 Consultative edition 1991 First edition 1993 Second edition 1995 Reprinted November 1995 with amendments Reprinted with corrections May 1998 Third edition June 2005 Reprinted with amendments June 2006 Reprinted 2007 (twice), 2008, 2009, 2010 (thrice), 2011, 2012 Reprinted with amendments 2013
British Library Cataloguing in Publication Data for this publication is available from the British Library. # Copyright nec 2013
All rights, including translation, reserved. The owner of this document may reproduce the Contract Data and forms for the purpose of obtaining tenders, awarding and administering contracts. Except as permitted by the Copyright, Designs and Patents Act 1988, no part of this publication may be otherwise reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the NEC Director, Thomas Telford Ltd, One Great George Street, Westminster, London SW1P 3AA.
Typeset by Academic + Technical, Bristol Printed and bound in Great Britain by Bell & Bain Limited, Glasgow, UK
For use on projects associated with UK Shared Business Services Ltd
CONTENTS
Foreword
v
Preface
vii
Acknowledgements
ix
Amendments
x 1
Schedule of Options Core clauses 1
2 3 4 5 6 7 8 9 Main Option clauses A
B C D E F Dispute resolution W
General The Contractor ’s main responsibilities Time Testing and Defects Payment Compensation events Title Risks and insurance Termination
3 7 9 11 13 15 20 21 24
Priced contract with activity schedule Priced contract with bill of quantities Target contract with activity schedule Target contract with bill of quantities Cost reimbursable contract Co
27 29 31 34 38
Management contract Option W1 Option W2
40 42 45
Secondary Option clauses X1
Price adjustment for inflation X2 Changes in the law X3 Multiple currencies X4 Parent company guarantee X5 Sectional Completion X6 Bonus for early Completion Bo X7 Delay damages X12 Partnering X13 Performance bond X14 X1 4 Adva Ad vanc nced ed pa paym ymen entt to th the e Contractor X15 X1 5 Lim imit itat atio ion n of th the e Contractor ’s ’s liability for his design to reasonable skill and care X16 Retention X17 Low performance damages X18 Limitation of liability X20 Key Performance Indicators Y(UK)1 Project Bank Account Y(UK Y( UK)2 )2 Th The e Ho Hous usin ing g Gr Gran ants ts,, Co Cons nstr truc ucti tion on an and d Re Rege gene nera rati tion on Ac Actt 19 1996 96 Y(UK)3 Th The Contracts (Rights of Third Parties) Act 1999 Z Additional conditions of contract
Note
48 49 49 49 49 50 50 50 52 52 52 53 53 53 54 55 59 59 59
Options Optio ns X8 to X11 and X19 are not used
Schedule of Cost Components
60
Shorter Schedule of Cost Components
63
Contract Data
65
Index
78
For use on projects associated with UK Shared Business Services Ltd
For use on projects associated with UK Shared Business Services Ltd
FOREWORD
I was delighted to be asked to write the Foreword for the NEC3 Contracts. I hav have e fol follow lowed ed the outstand outstanding ing rise and success success of NE NEC C con contra tracts cts for a number of years now, in particular during my tenure as the 146th President of the Institution of Civil Engineers, 2010/11. In my position as UK Government’s Chief Construction Adviser, I am working with Government and industry to ensure Britain’s construction sector is equipped with the knowledge, skills and best practice it needs in its transition to a low carbon economy. I am promoting innovation in the sector, including in particular parti cular the use of Buil Building ding Information Information Modelling (BIM) in publi publicc secto sectorr constr con struct uction ion pro procur cureme ement; nt; and the syn synerg ergyy and fit wit with h the col collab labora orativ tive e nature of NEC contracts is obvious. The Government’s construction strategy is a very significant investment and NEC contracts will play an important role in sett se ttin ing g hi high gh st stan anda dards rds of co cont ntra ract ct pr prep epar arat atio ion, n, ma mana nage geme ment nt an and d th the e desirable behaviour of our industry. In the UK, we are faced with having to deliver a 15–20 per cent reduction in the th e co cost st to th the e pu publ blic ic se sect ctor or of co cons nstr truc ucti tion on du duri ring ng th the e li life feti time me of th this is Parliament. Shifting mind-set, attitude and behaviour into best practice NEC processes will go a considerable way to achieving this. Of cou course rse,, NEC contract contractss are use used d suc succes cessfu sfully lly aro around und the wor world ld in bot both h public pub lic and private private sec sector tor pro project jects; s; thi thiss tre trend nd see seems ms set to con contin tinue ue at an increasing pace. NEC contracts are, according to my good friend and NEC’s creator Dr Martin Barnes CBE, about better management of projects. This is quite achievable and I encourage you to understand NEC contracts to the best you can and exploit the potential this offers us all. Peter Hansford UK Government’s Chief Construction Adviser Cabinet Office
For use on projects associated with UK Shared Business Services Ltd
For use on projects associated with UK Shared Business Services Ltd
PREFACE
The NEC con contra tracts cts are the only sui suite te of sta standa ndard rd con contra tracts cts des design igned ed to facilitate and encourage good management of the projects on which they are used. The experience of using NEC contracts around the world is that they really make a difference. Previously, standard contracts were written mainly as leg legal al doc docume uments nts best lef leftt in the desk dra drawer wer un until til costly costly and delaying delaying problems had occurred and there were lengthy arguments about who was to blame. The language of NEC contracts is clear and simple, and the procedures set outt ar ou are e al alll de desi sign gned ed to st stim imul ulat ate e go good od ma mana nage geme ment nt.. Fo Fore resi sigh ghte ted d collab col labora oration tion between between all the con contri tribut butors ors to the pro projec jectt is the aim aim.. The contracts set out how the interfaces between all the organisations involved will be managed – from the client through the designers and main contractors to all the many subcontractors and suppliers. Versions of the NEC contract are specific to the work of professional service providers such as project managers and designers, to main contractors, to subcontractors and to suppliers. The wide range of situations covered by the contracts means that they do not need to be altered to suit any particular situation. The NE The NEC C co cont ntra racts cts ar are e th the e fir first st to de deal al sp spec ecifi ifica call llyy an and d ef effe fect ctiv ivel elyy wi with th management of the inevitable risks and uncertainties which are encountered to some extent all projects. Management thethe expected is easy, effective manage man agemen ment t ofonthe unexp un expect ected ed dra draws ws ful fully lyof on collab col labora orativ tive e app approa roach ch inherent in the NEC contracts. Most people working on projects using the NEC contracts for the first time are ar e hu huge gely ly im impr pres esse sed d by th the e di diff ffer eren ence ce be betw twee een n th the e co conf nfro ront ntat atio iona nall characteristics of traditional contracts and the teamwork engendered by the NEC. The NEC does not include specific provisions for dispute avoidance. They are not nec necess essary. ary. Col Collabo laborat rative ive man manage agemen mentt its itself elf is des design igned ed to avo avoid id disputes and it really works. It is common for the final account for the work on a project to be settled at the time tim e whe when n the wor workk is fin finish ished. ed. The tradition traditional al lon long g per period iod of exp expens ensive ive professional work after completion to settle final payments just is not needed. The NEC contracts are truly a massive change for the better for the industries in which they are used. Dr Martin Barnes CBE Originator of the NEC contracts
For use on projects associated with UK Shared Business Services Ltd
For use on projects associated with UK Shared Business Services Ltd
ACKNOWLEDGEMENTS
The NE The NEC C fir first st ed edit itio ion n wa wass pr prod oduc uced ed by th the e In Inst stit itut utio ion n of Ci Civi vill En Engi gine neer erss through its NEC Working Group. The original original NEC was designed designed and dra drafte fted d by Dr Mar Martin tin Barnes Barnes the then n of Coopers Lybrand withT.the of of Professor J. G. Perry then of the Universityand of Birmingham, W. assistance Weddell then Travers Morgan Management, T. H. Nic Nichol holson son,, Con Consul sultan tantt to the Ins Instit tituti ution on of Civ Civil il En Engin gineer eers, s, A. Nor Norman man then of the University of Manchester Institute of Science and Technology and P. A. Baird, then Corporate Contracts Consultant, Eskom, South Africa. The second edition of the NEC documents for engineering and construction contracts was produced by the Institution of Civil Engineers through its NEC Panel. The thi third rd edi editio tion n of the NEC Engine Engineeri ering ng and Con Constr struct uction ion Con Contra tract ct was produc pro duced ed by the Ins Instit tituti ution on of Civ Civil il Engin Engineer eerss thr throug ough h its NEC Panel. Panel. The Flow Flo w Cha Charts rts were pro produc duced ed by Joh John n S. Gilles Gillespie pie with ass assist istanc ance e fro from m Tom Nicholson. The members of the NEC Panel are: P. Higgins, BSc, CEng, FICE, FCIArb (Chairman) P. A. Baird, BSc, CEng, FICE, M(SA)ICE, MAPM M. Barnes, BSc(Eng), PhD, FREng, FICE, FCIOB, CCMI, ACIArb, MBCS, FInstCES, FAPM A. J. Bates, FRICS, MInstCES A. J. M. Blackler, BA, LLB(Cantab), MCIArb P. T. Cousins, BEng(Tech), DipArb, CEng, MICE, MCIArb, MCMI L. T. Eames, BSc, FRICS, FCIOB F. Forward, BA(Hons), DipArch, MSc(Const Law), RIBA, FCIArb Professor J. G. Perry, MEng, PhD, CEng, FICE, MAPM N. C. Shaw, FCIPS, CEng, MIMechE T. W. Weddell, BSc, CEng, DIC, FICE, FIStructE, ACIArb NEC Consultant: R. A. Gerrard, BSc(Hons), MRICS, FCIArb, FCInstCES Secretariat: A. Cole, LLB, LLM, BL J. M. Hawkins, BA(Hons), MSc F. N. Vernon (Technical Adviser), BSc, CEng, MICE The Institution Civil other Engineers acknowledges edition given byofmany people, in particular,the by:help in preparing the third J. C. Broome, BEng A. Else, BSc, CEng, FICE C. Flook, Esq. R. Lewendon, FICE, MIHT, MCIArb, MAPM T. H. Nicholson, BSc, FICE R. Patterson, BA, MA(Cantab), MBA, CEng, MICE C. Reed, CEng, MA, MSc, FICE D. Weeks, FRICS S. Zarka, FRICS
For use on projects associated with UK Shared Business Services Ltd
AMENDMENTS JUNE 2006 The following amendments have been made to the June 2005 edition. Page
Clause
Line
10
32.1
4 deleted: ‘and of notified early warning matters’
61
Contract Data Part one, 1.
3 added, ‘(wit ‘(with h amendme amendments nts June June 2006)’
64
Contract Data Part one, 1.
23 deleted: deleted: ‘If there there are are additiona additionall compensati compensation on events’ and following 4 lines
AMENDMENTS APRIL 2013 The fo The foll llow owin ing g am amen endm dmen ents ts ha have ve be been en ma made de to th the e Ju June ne 20 2005 05 ed edit itio ion. n. Full details of all amendments are available on www.neccontract.com. Page
Clause
Line
11
40.1
1 replace: ‘The subclauses in this clause only apply’ with ‘This clause only applies’
16
61.1 61.3
1 te text xt re repl plac aced ed 1 te text xt re repl plac aced ed
17
61.4
1 text replaced
18
62.6 63.1
2 replace: replace: ‘to this effect effect’’ with ‘of ‘of his failu failure’ re’ 1 te text xt re repl plac aced ed replace final sentence: ‘In all other . . . the event.’ with ‘In all other cases, the date is the date of the notification of the compensation event.’
19
64.4
2 replace: ‘to this effect’ with ‘of his failure’
25
91.4
1 text replaced
28
63.14
2 delete: ‘instead of Defined Cost’
29
63.13
33
63.14
1 insert new clause
37 39
63.13 63.14
last paragraph delete: ‘instead of Defined Cost’ 1 insert new clause
41
63.14
1 insert new clause
46
W2.3(7) W2.3(8) W2.3(12)
1 text text re repl plac aced ed added at end: new sentence text replaced
55
Y(UK)1
1 insert new clause: ‘Project Bank Account’
57
Y(UK)1
1 insert new clause: ‘Trust Deed’
58
Y(UK)1
1 insert new clause: ‘Joining Deed’
last paragraph delete: ‘instead of Defined Cost’
For use on projects associated with UK Shared Business Services Ltd
Page
Clause
Line
59
Y2.1 (1) Y2.2 Y2.3
64
41
65
Contract Data
4 date repla replaced ced with ‘Apri ‘Aprill 2013’ 2013’
73
Part one, 1. Y(UK)3 Y(UK)1 and Y(UK)3
1 te text xt in inse sert rted ed 1 te text xt in inse sert rted ed
75
Y(UK)1
1 text inserted
1 text text re repl plac aced ed 1 par paragr agraph aph 3, text text rep replac laced ed 1 te text xt re repl plac aced ed 3rd bullet: text replaced
For use on projects associated with UK Shared Business Services Ltd
For use on projects associated with UK Shared Business Services Ltd
SCHEDULE OPTIONS NS SCHEDULE OF OPTIO
The strategy for choosing the form of contract starts with a decision between six main Options, one of which must be chosen.
Opti Op tion on A
Pric Pr iced ed co cont ntra ract ct wi with th ac acti tivi vity ty sc sche hedu dule le
Opti Op tion on B
Pric Pr iced ed co cont ntra ract ct wi with th bi bill ll of qu quan anti titi ties es
Opti Op tion on C
Targ Ta rget et co cont ntra ract ct wi with th ac acti tivi vity ty sc sche hedu dule le
Opti Op tion on D
Targ Ta rget et co cont ntra ract ct wi with th bi bill ll of qu quan anti titi ties es
Opt ptiion E
Cos ostt reimburs rsa able cont ntra rac ct
Option F
Management contract One of the following dispute resolution Options must be selected to complete the chosen main Option.
Opti Op tion on W1
Disput Disp ute e re reso solu luti tion on pr proc oced edure ure (u (use sed d unl unles ess s th the e Uni Unite ted d Ki Kingd ngdom om Ho Hous usin ing g Grants, Construction and Regeneration Act 1996 applies).
Opti Op tion on W2
Disput Disp ute e re reso solu luti tion on pr proc oced edure ure (u (use sed d in th the e Uni Unite ted d Ki King ngdo dom m wh when en th the e Ho Hous usin ing g Grants, Construction and Regeneration Act 1996 applies). The following secondary Options should then be considered. It is not necessary to use any of them. Any combination other than those stated may be used.
Opti Op tion on X1
Pric Pr ice e adj adjus ustm tment ent fo forr in inflat flatio ion n (us (used ed on only ly wi with th Op Opti tion ons s A, B, C an and d D)
Option X2
Changes in the law
Opti Op tion on X3
Mult Mu ltip iple le cu curr rren enci cies es (u (use sed d on only ly wi with th Op Opti tion ons s A an and d B)
Option X4
Parent compan anyy guar ara antee
Option X5
Sectional Comp mplletion
Option X6
Bonus for early Completion
Option X7
Delay damages
Option X12
Partnering
Option X13
Performance bond
Option X14
Advanc nced ed pa payyment to the Contractor
Option X15
Limitation of the Contractor ’s ’s liability for his design to reasonable skill and care
Opti Op tion on X1 X16 6
Rete Re tent ntio ion n (n (not ot us used ed wi with th Opt ptio ion n F)
Option X17
Low pe perrformanc nce e damag age es
Option X18
Limitat atiion of liability
Opti Op tion on X2 X20 0
Keyy Pe Ke Perf rfor orman mance ce In Indi dica cator tors s (no (nott us used ed wi with th Op Opti tion on X1 X12) 2) The following Options dealing with nationa nationall legisl legislation ation should be include included d if required.
Option Y(UK UK))1
Project Bank Acco cou unt
Opti Op tion on Y( Y(UK) UK)2 2
The Th e Ho Hous usin ing g Gr Gran ants ts,, Co Cons nstr truct uctio ion n an and d Re Regen gener erat atio ion n Ac Actt 19 1996 96
Opti Op tion on Y( Y(UK) UK)3 3
The Th e Co Cont ntra ract cts s (R (Rig ights hts of Th Thir ird d Pa Part rtie ies) s) Ac Actt 19 1999 99
Option Z Notte No
www.neccontract.com
Additional Additio nal conditio conditions ns of contra contract ct
Opti Op tion ons s X8 to X1 X11 1 an and d X1 X19 9 ar are e no nott us use ed.
# copyright
nec 2013 1
For use on projects associated with UK Shared Business Services Ltd
For use on projects associated with UK Shared Business Services Ltd
®
Engineering and Construction Contract
CORE CLAUSES
1 General
Acti Ac tion ons s 10 1 0 .1
Identified and defined 11 terms 11. 11.1 1
11.2 11 .2
The Employer , the Contractor , the Project Mana Manager ger and the Supervisor shall act as stated in this contract and in a spirit of mutual trust and co-operation.
In these these conditio conditions ns of contract contract,, terms identi identified fied in the Contrac Contractt Data are in italics and defined terms have capital initials. (1) Th (1) The e Ac Acce cepte pted d Pr Prog ogra ramme mme is th the e pr prog ogra ramme mme identi identifie fied d in th the e Co Cont ntra ract ct Data or is the latest programme accepted by the Project Manager . The latest programme accepted by the supersedes supersede s previo previous us Accep Accepted ted Project Mana Manager ger Programmes. (2) Completion is when the Contractor has has .
.
done all the work which the Works Information states he is to do by the Completion Date and corrected notified Defects which would have prevented the Employer from from using the works and Others from doing their work .
If the work which the Contractor is is to do by the Completion Date is not stated in the Works Information, Completion is when the Contractor has done all the work necessary for the Employer to use the works and for Others to do their work. (3) Th (3) The e Co Compl mplet etio ion n Da Date te is th the e completion completion date unless unless lat later er cha changed nged in accordance with this contract.
s e e r s o u a c l c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
(4) The Contract Date is the date when this contract came into existence. (5) A Defect is .
.
a part of the works which is not in accordance with the Works Information or a part of the works designed by the Contractor which which is not in accordance with the applicable law or the Contractor ’s ’ s de desi sign gn wh whic ich h th the e Project Manager has has accepted.
(6) The Defects Certificate is either a list of Defects that the Supervisor has notified before the defects date which the Contractor has not corrected or, if there are no such Defects, a statement that there are none. (7) Equipment is items provided by the Contractor and and used by him to Provide the Works and which the Works Information does not require him to include in the works. (8) The Fee is the sum of the amounts calculated by applying the subcontracted tracte d fee perce percentage ntage to the Defined Cost of sub subcon contra tracte cted d wor work k and the direct fee percentage to the Defined Cost of other work.
www.neccontract.com
# copyright
nec 2013 3
t c a a t r a n t o d c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract (9) A Key Date is the date by which work is to meet the Condition stated. The Key Date is the key date stated in the Contract Data and the Condition is the condition stated in the Contract Data unless later changed in accordance with this contract. (10) Others are people or organisations who are not the Employer, the Project Manager , th the e Supervisor , th the e Adjudicator , th the e Contractor or any empl employe oyee, e, Subcontractor Subcont ractor or suppli supplier er of the Contractor . (11) The Parties are the Employer and and the Contractor . (12) Plant and Materials are items intended to be included in the works. (13) To Provide the Works means to do the work necessary to complete the works in accordance with this contract and all incidental work, services and actions which this contract requires. (14) Th (14) The e Ri Risk sk Re Regi gist ster er is a re regi gist ster er of th the e ri risk sks s wh whic ich h ar are e li list sted ed in th the e Contract Data and the risks which the Project Manager or the Contractor has notified as an early warning matter. It includes a description of the risk and a description of the actions which are to be taken to avoid or reduce the risk.
s e e r s o u a c l c
(15) The Site is the area within the boundaries of the site and the volumes above and below it which are affected by work included in this contract.
s e s u a n l i a c m n o i t p o
(16) Site Infor Information mation is inform information ation which . .
describes the Site and its surroundings and is in the documents which the Contract Data states it is in.
(17) A Subcontractor is a person or organisation who has a contract with the Contractor to to construct or install part of the works, provide a service necessary to Provide the Works or supply Plant and Materials which the person or organisation has wholly or partly designed specifically for the works.
s e y r s a u a d l n c o n c o e i s t p o
. . .
(18) The Working Areas are those parts of the working areas which are . .
s t n t e s n o o c p m o c
necessary for Providing the Works and used only for work in this contract
unless later changed in accor accordance dance with this contract. contract. (19) Works Information Information is information which either . .
specifies and descri specifies describes bes the works or states any constraints on how the Contractor Provides Provides the Works
and is either t c a a t r a n t o d c
. .
Interp Int erpret retati ation on and and the law law 12 12.1 12 .1
4
# copyright
nec 2013
in the documents which the Contract Data states it is in or in an instruction given in accordance with this contract.
In th this is co cont ntra ract ct,, ex exce cept pt wh wher ere e th the e co cont ntex extt sho shows ws ot othe herw rwis ise, e, wo word rds s in th the e singular also mean in the plural and the other way round and words in the masculine also mean in the feminine and neuter.
12.2 12. 2
This cont contrac ractt is is gove governe rned d by by the the law of the contract.
12.3 12. 3
No change change to this this contr contract act,, unless unless provid provided ed for for by the conditions of contract, has effect unless it has been agreed, confirmed in writing and signed by the Parties.
12.4
This contrac contractt is the entire entire agreeme agreement nt between between the the Parties Parties..
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses Communi municat cation ions s 13 Com 13.1 13 .1
Each in Each inst stru ruct ctio ion, n, ce cert rtifi ifica cate te,, su subm bmis issi sion on,, pr prop opos osal al,, re reco cord rd,, ac acce cept ptanc ance, e, notific not ificati ation, on, rep reply ly and oth other er com communi municat cation ion whi which ch thi this s con contra tract ct req requir uires es is communicated in a form which can be read, copied and recorded. Writing is in the language of this contract.
13.2 13. 2
A communica communicatio tion n has effect effect when it is receiv received ed at the last ad addre dress ss notifie notified d by the th e re reci cipi pien entt fo forr re rece ceiv ivin ing g co commu mmuni nica cati tions ons or or,, if non none e is no noti tifie fied, d, at th the e address of the recipient stated in the Contract Data.
13.3 13. 3
If thi this s cont contrac ractt requ require ires s the the Project Manager , the Supervisor or the Contractor to rep reply ly to a com communi municat cation, ion, unless unless oth otherw erwise ise stated stated in thi this s con contra tract, ct, he replies within the period for reply .
1 3 .4
The Project Manager replies to a communication submitted or resubmitted to him hi m by th the e Contractor for ac acce cepta ptanc nce. e. If hi his s re repl plyy is not ac acce cepta ptanc nce, e, th the e Project Manager states states his reasons and the Contractor resubmits resubmits the communication within the period for reply taking taking account of these reasons. A reason for withholdi withholding ng acc accept eptanc ance e is tha thatt mor more e inf inform ormati ation on is nee needed ded in ord order er to assess the Contractor ’s ’s submission fully.
1 3 .5
The Project Manager may may extend the period for reply to to a communication if the Project Manager and and the Contractor agree agree to the extension before the reply is due. The Project Mana Manager ger notifies the Contractor of the extension which has been agreed.
1 3 .6
The Project Manager issues issues his certificates to the Employer and the Contractor . The Supervisor issues issues his cer certifi tificat cates es to the Project Manag Manager er and th the e Contractor .
13.7 13. 7
A notificati notification on which this contrac contractt requires requires is com communi municat cated ed separate separately ly from other communications.
1 3 .8
The Project Project Mana Manager ger may may wi with thho hold ld ac acce cept ptanc ance e of a sub submi miss ssio ion n by th the e Contractor . Withholding acceptance for a reason stated in this contract is not a compens compensation ation event.
The Project The Project Manager and and 14 the Supervisor the Supervisor 14.1
The Project Mana Manager ger ’s ’ s or th the e Supervisor ’s ’ s acc accepta eptance nce of a com communi municat cation ion from the Contractor or or of his work does not change the Contractor ’s ’s responsibility to Provide the Works or his liability for his design.
1 4 .2
Manager ger and the Supervisor , after notifying the Contractor , may The Project Mana delegate any of their actions and may cancel any delegation. A reference to an action of the Project Manager or or the Supervisor in in this contract includes an action by action by his delegate.
14.3
The Project Manager may may give an instruction to the Contractor which which changes the Works Information or a Key Date.
14.4
The Employer may may replace the Project Manager or or the Supervisor after after he has notified the Contractor of of the name of the replacement.
Adding to the Working 15 Areas 15.1
Early Ear ly war warning ning 16 1 6 .1
The Contractor may su subm bmit it a pr prop opos osal al fo forr ad addi ding ng an ar area ea to th the e Wo Work rkin ing g Areas to the Project Mana Manager ger for acceptance. A reason for not accepting is that the proposed area is either not necessary for Providing the Works or used for work not in this contract.
The Contractor and and the Project Manager give give an early warning by notifying the other as soon as either becomes aware of any matter which could . . . .
www.neccontract.com
increase the total of the Prices, delay Completion, delay meeting a Key Date or impair the performance of the works in use.
# copyright
nec 2013 5
s e e r s o u a c l c
s e s u a n l i a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a a t r t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract The Contractor may give an early warning by notifying the Project Manager of any oth other er mat matter ter which could inc increa rease se his total cost. The Project Mana Manager ger enters early warning matters in the Risk Register. Early warning of a matter for which a compensation event has previously been notified is not required. 16.2 16 .2
Either Eith er th the e Project Manager or or the Contractor may may instruct the other to attend a risk reduction meeting. Each may instruct other people to attend if the other agrees.
16.3
At a risk reduct reduction ion meeting, meeting, those who attend attend co-ope co-operate rate in .
.
.
s e e r s o u a c l c
.
1 6 .4
s e s u a n i l a c m n o i t p o
Ambiguities and 17 inconsistencies 17.1
s e y r s a u a d l n c o n c o e i s t p o
Illegall and impossi Illega impossible ble 18 requirements 18.1
s t n t e s n o o c p m o c
Preven Pre ventio tion n
19 19.1 19. 1
making and con making consid sideri ering ng pro propos posals als for how the eff effect ect of the reg regist istere ered d risks can be avoided or reduced, seek se ekin ing g so solu luti tion ons s th that at wi will ll br bring ing ad adva vant ntage age to al alll th thos ose e wh who o wi will ll be affected, deciding on the actions which will be taken and who, in accordance with this contract, will take them and deciding which risks have now been avoided or have passed and can be removed from the Risk Register. Register.
The Project Manager revises revises the Risk Register to record the decisions made at each ea ch ri risk sk re reduc ducti tion on mee meeti ting ng and is issue sues s th the e re revi vise sed d Ri Risk sk Re Regi gist ster er to th the e Contractor . If a decision needs a change to the Works Information, the Project Manager instructs instructs the change at the same time as he issues the revised Risk Register.
The Project Mana Manager ger or th the e Contractor notifie notifies s the other as soo soon n as eit either her becomes aware of an ambiguity or inconsistency in or between the documents Manager ger gives an ins which are part of this contract. The Project Mana instru tructi ction on resolving the ambiguity or inconsistency.
The Contractor notifies the Project Manager as soon as he considers that the Works Information requires him to do anything which is illegal or impossible. If the Project Manager agrees, he gives an instruction to change the Works Information appropriately.
If an eve event nt occ occurs urs whi which ch . .
stops the Contractor completing completing the works or stops sto ps the Contractor completing completing the works by th the e da date te sh show own n on th the e Accepted Programme,
and which t c a a t r t a n d o c
. .
neither Party could prevent and an exp experi erience enced d cont contrac ractor tor wou would ld have judged at the Contract Contract Dat Date e to have such a small chance of occurring that it would have been unreasonable for him to have allowed for it,
the Project Manager gives gives an instruction to the Contractor stating stating how he is to deal with the event.
6
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses
2 The Contractor ’s ’s main responsibilities
Provid Pro viding ing the Wor Works ks 20 2 0 .1 The Contractor The Contractor ’s ’ s de desi sign gn 21 2 1 .1
2 1 .2
The Contractor Provides Provides the Works in accordance with the Works Information.
The Contractor designs the parts of the works which the Works Information Information states he is to design. The Contractor submits submits the particulars of his design as the Works Information requires to the Project Mana Manager ger for acc accept eptance ance.. A rea reason son for not acc accept epting ing the Contractor ’s ’ s de desi sign gn is th that at it do does es no nott co compl mplyy wi with th ei eith ther er th the e Wo Work rks s Information Infor mation or the applicable law. The Contractor does does no nott pr proc ocee eed d wi with th th the e re rele leva vant nt wo work rk unt until il th the e Project Manager has has accepted his design.
2 1 .3
Using the Contractor the Contractor ’s ’s 22 design 22.1
Design Des ign of Equi Equipme pment nt 23 2 3 .1
The Contractor may may submit his design for acceptance in parts if the design of each part can be assessed fully.
The Employer may may us use e an and d co copy py th the e Contractor ’s ’ s de desi sign gn fo forr an anyy pur purpos pose e connected with construction, use, alteration or demolition of the works unless otherwise stated in the Works Information and for other purposes as stated in the Works Information.
The Contractor submits particulars of the design of an item of Equipment to the Project Manager for for acceptance if the Project Manager instructs instructs him to. A reason for not accepting is that the design of the item will not allow the Contractor to to Provide the Works in accordance with . . .
Peop Pe ople le 24 2 4 .1
2 4 .2
Working with the Employer the Employer 25 and Others 25.1
25.2
www.neccontract.com
s e e r s o u a c l c
the Works Information, the Contractor ’s ’s design which the Project Manager has has accepted or the applicable law.
The Contractor either either employs each key person named to do the job stated in the Contract Data or employs a replacement person who has been accepted by the Project Manager . The Contractor submits the name, relevant qualifications ti ons an and d ex expe peri rienc ence e of a pr prop opos osed ed re repl plac aceme ement nt pe pers rson on to th the e Project Manager for acceptanc acceptance. e. A rea reason son for not accepting accepting the pers person on is tha thatt his relevant qualifications and experience are not as good as those of the person who is to be replaced. The Project Mana Manager ger may, having stated his reasons, instruct the Contractor to remove an employee. The Contractor then then arranges that, after one day, the employee has no further connection with the work included in this contract.
The Contractor co-operates co-operates with Others in obtaining and providing information which they need in connection with the works. He co-operates with Others and shares the Working Areas with them as stated in the Works Information. The Employer and the Contractor provide services and other things as stated in the Works Information. Any cost incurred by the Employer as as a result of the Contractor not not providing the services and other things which he is to provide is assessed by the Project Manager and and paid by the Contractor.
# copyright
nec 2013 7
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a a t r t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract 2 5 .3
If the Project Manag Manager er decide decides s tha thatt the work doe does s not mee meett the Condition Condition stated for a Key Date by the date stated and, as a result, the Employer incurs incurs additional cost either . .
in carrying out work or by paying an additional amount to Others in carrying out work
on the same project, the additional cost which the Employer has paid or will incur is paid by the Contractor . The Project Manager assesses the additional cost within four weeks of the date when the Condition for the Key Date is met. The Employer ’s ’ s right to recover the additional cost is his only right in these circumstances. Subcon Sub contra tracti cting ng 26 2 6 .1 s e e r s o u a c l c
s e s u a n i l a c m n o i t p o
If the Contractor subcontracts subcontracts work, he is responsible for Providing the Works as if he had not subcontracted. This contract applies as if a Subcontractor’s employees and equipment were the Contractor ’s. ’s.
2 6 .2
The Contractor submit submits s the name of eac each h prop propose osed d Sub Subcon contra tracto ctorr to the Project Manager for for acceptance. A reason for not accepting the Subcontractor is that his appointment will not allow the Contractor to to Provide the Works. The Contractor does does not app appoi oint nt a pr propo opose sed d Su Subc bcont ontra ract ctor or un unti till th the e Project Manager has has accepted him.
2 6 .3
The Contractor submits the proposed conditions of contract for each subcontract to the Project Manager for for acceptance unless . .
an NEC contract is proposed or the Project Manager has has agreed that no submission is required.
The Contractor does does not appoint a Subcontractor on the proposed subcontract conditions submitted until the Project Manager has accepted them. A reason for not accepting them is that
s e y r s a u a d l n c o n c o e i s t p o
. .
Other respon responsibili sibilities ties 27 2 7 .1
s t n t e s n o o c p m o c
2 7 .2
The Contractor obtains obtains approval of his design from Others where necessary. The Contractor provides provides access to work being done and to Plant and Materials being stored for this contract for . . .
t c a a t r t a n d o c
8
# copyright
nec 2013
they will not allow the Contractor to to Provide the Works or they do not include a statement that the parties to the subcontract shall act in a spirit of mutual trust and co-operation.
the Project Manager , the Supervisor and and Others notified to him by the Project Manager .
2 7 .3
The Contractor obeys an instruction which is in accordance with this contract
2 7 .4
and is given to him by the Project Manager or or the Supervisor . The Contractor acts in acc accord ordance ance with the hea health lth and saf safety ety req requir uireme ements nts stated in the Works Information. Information.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses
3 Time
Starting, Completion and 30 Key Dates 30.1
The programme
The Contractor does not start work on the Site until the first access date and does the work so that Completion is on or before the Completion Date.
3 0 .2
Manager ger decides Manager ger The Project Mana decides the dat date e of Comp Complet letion ion.. The Project Mana certifies certi fies Completion within one week of Comple Completion. tion.
3 0 .3
The Contractor does the work so that the Condition stated for each Key Date is met by the Key Date.
31 31.1 31. 1
31.2
If a program programme me is not ident identifie ified d in the Contr Contract act Data, Data, the the Contractor submits a first programme to the Project Mana Manager ger for acceptance acceptance withi within n the period stated in the Contract Data. The Contractor shows shows on each programme which he submits for acceptance . . .
.
.
.
the starting date, access dates, Key Dates and Completion Date, planned Completion, the order and timing of the operations which the Contractor plans to do in order to Provide the Works, the th e or orde derr an and d ti timi ming ng of th the e wo work rk of the Employer and Others as las lastt agreed with them by the Contractor or, or, if not so agreed, as stated in the Works Information, the dates when the Contractor plans to meet each Condition stated for the Key Dates and to complete other work needed to allow the Employer and Others to do their work, provisions for . . . .
.
. .
.
.
.
access to a part of the Site if later than its access date, acceptances, Plant and Materials and other things to be provided by the Employer and information from Others,
for each operation, a statement of how the Contractor plans to do the work identifying the principal Equipment and other resources which he plans to use and other information which the Works Information requires the Contractor to show on a programme submitted for acceptance.
Wit ithi hin n tw two o we wee eks of the the Contractor subm submitt ittin ing g a pr prog ogra ramme mme to him fo forr acceptance, the Project Manager either either accepts the programme or notifies the Contractor of his reasons for not accepting it. A reason for not accepting a programme is that . . . .
www.neccontract.com
float, time risk allowances, health and safet safetyy requir requirements ements and the procedures set out in this contract,
the dates when, in ord order er to Pro Provid vide e the Works in acc accord ordanc ance e wit with h his programme, program me, the Contractor will will need .
31.3 31 .3
s e e r s o u a c l c
the Contractor ’s ’s plans which it shows are not practicable, it does not show the information which this contract requires, it does not represent the Contractor ’s ’s plans realistically or it does not comply with the Works Information.
# copyright
nec 2013 9
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a a t r t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Revisi ng the the progr programme amme 32 Revising 3 2 .1
The Contractor shows shows on each revised programme .
. .
.
3 2 .2
Accepted Programme. The Contractor submi submits ts a re revi vise sed d pr prog ogram ramme me to th the e Project Mana Manager ger for acceptance .
.
s e e r s o u a c l c
.
Access to and use of 33 the Site 33.1 s e s u a n l i a c m n o i t p o
Instructions to stop or not to start work
34 3 4 .1
the actual progress achieved on each operation and its effect upon the timing of the remaining work, the effects of implemented compensation events, how the Contractor plans to deal with any delays and to correct notified Defects and any ot other her ch chang anges es wh whic ich h th the e Contractor prop propos oses es to ma make ke to th the e
within the period for reply after the Project Manager has instructed him to, when the Contractor chooses chooses to and, in any case, at no longer interval than the interval stated in the Contract Data from the starting date until Completion of the whole of the works.
The Employer allows allows access to and use of each part of the Site to the Contractor which is necessary for the work included in this contract. Access and use is allowed on or before the later of its access date and the date for access shown on the Accepted Programme.
The Project Manager may instruct the Contractor to stop or not to start any work and may later instruct him that he may re-start or start it.
s e y r s a u a d l n c o n c o e i s t p o
Take over 35 3 5 .1
3 5 .2
s t n t e s n o o c p m o c
The Employer need need not take over the works before the Completion Date if it is stat st ated ed in th the e Co Cont ntra ract ct Da Data ta th that at he is no nott wi will llin ing g to do so so.. Ot Othe herw rwis ise e th the e Employer takes takes over the works not later than two weeks after Completion. The Employer may use any part of the works before before Com Comple pletio tion n has bee been n certified. If he does so, he takes over the part of the works when he begins to use it except if the use is . .
3 5 .3
Accele Acc elerat ration ion 36 3 6 .1
t c a a t r t a n d o c
for a reason stated in the Works Information or to suit the Contractor ’s ’s method of working.
The Project Mana Manager ger certifies the date upon which the Employer takes over any part of the works and its extent within one week of the date. The Project Manager may may instruct the Contractor to to submit a quotation for an accele acceleratio ration n to achiev achieve e Complet Completion ion befor before e to the The Project Manager states states changes to the Key Dates beCompletion included inDate. the quotation. A quotation for an acceleration comprises proposed changes to the Prices and a revised programme showing the earlier Completion Date and the changed Key Dates. The Contractor submits submits details of his assessment with each quotation.
3 6 .2
10
# copyright
nec 2013
The Contractor submi submits ts a qu quot otat atio ion n or gi give ves s hi his s re reas ason ons s fo forr no nott do doin ing g so within the period for reply .
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses
4 Testing and Defects
Tests and inspections
40 40.1 40. 1
This clause This clause only applies applies to tests tests and inspect inspection ions s required required by the Works Works InforInformation or the applicable law.
4 0 .2
The Contractor and and the Employer provide provide materials, facilities and samples for tests and inspections as stated in the Works Information.
4 0 .3
The Contractor and th the e Supervisor each each no noti tifie fies s th the e ot othe herr of ea each ch of his tests and inspections before it starts and afterwards notifies the other of its results. The Contractor notifies the Supervisor in time for a test or inspection to be arranged and done before doing work which would obstruct the test or inspection. The Supervisor may may watch any test done by the Contractor .
40.4 40 .4
If a te test st or in insp spec ecti tion on shows shows that that an anyy wo work rk has a De Defe fect ct,, th the e Contractor corrects the Defect and the test or inspection is repeated.
40.5
The Supervisor does his tests and inspections without causing unnecessary delay to the work or to a payment which is conditional upon a test or inspection being successful. A payment which is conditional upon a Supervisor ’s ’s test or inspection being successful becomes due at the later of the defects date and the end of the last defect correction period if . .
4 0 .6
Testing and inspection 41 before delivery 41.1
Searching for and 42 notifying Defects 42 42.1 .1
The Project Manager assesses the cost incurred by the Employer in in repeating a test or inspection after a Defect is found. The Contractor pays the amount assessed.
The Contractor does does not bring to the Working Areas those Plant and Materials which the Works Information states are to be tested or inspected before delivery until the Supervisor has has notified the Contractor that that they have passed the test or inspection.
Untill th Unti the e defects date, the Supervisor may may instruct the Contractor to to search for a Defect. He gives his reason for the search with his instruction. Searching may include . .
.
42.2 42 .2
Correc Cor rectin ting g Defe Defects cts 43 4 3 .1
4 3 .2
www.neccontract.com
the Supervisor has has not done the test or inspection and the delay to the test or inspection is not the Contractor ’s ’s fault.
uncovering, dismantling, re-covering and re-erecting work, providing providi ng facil facilities ities,, mater materials ials and samples for tests and inspections done by the Supervisor and an d doin do ing g te test sts s an and d in inspe spect ctio ions ns wh whic ich h th the e Wo Work rks s In Info form rmat atio ion n do does es no nott require.
Untill th Unti the e defects date, the Supervisor notifies notifies the Contractor of of each Defect as soon as he finds it and the Contractor notifies the Supervisor of each Defect as soon as he finds it.
The Contractor corrects corrects a Defect whether or not the Supervisor notifies notifies him of it. The Contractor corr correc ects ts a no noti tifie fied d De Defe fect ct be befo fore re th the e end end of th the e defect correction correc tion period. The defect defect corr correcti ection on per period iod begin begins s at Compl Complet etio ion n fo forr Defects notified before Completion and when the Defect is notified for other Defects.
# copyright
nec 2013 11
s e e r s o u a c l c
s e s u a n l i a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a a t r t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract
Accept Acc epting ing Def Defect ects s
4 3 .3
The Supervisor issues the Defects Certificate at the later of the defects date and an d th the e en end d of th the e la last st defect defect correct correction ion period. The Employer’s ri righ ghts ts in respec res pectt of a Def Defect ect which the Supervisor has not found or notified are not affected by the issue of the Defects Certificate.
43.4
The Project Manager arranges arranges for the Employer to to allow the Contractor access access to and use of a part of the works which he has taken over if they are needed for correcting a Defect. In this case the defect correction period begins when the necessary access and use have been provided.
44 44.1
44.2 s e e r s o u a c l c
Uncorr Unc orrect ected ed Def Defect ects s
s e s u a n i l a c m n o i t p o
45 4 5 .1
4 5 .2
s e y r s a u a d l n c o n c o e i s t p o
The Contractor and the Project Manager may each propose to the other that the Works Information should be changed so that a Defect does not have to be corrected. If the Contractor and th the e Project Project Mana Manager ger are pr prep epar ared ed to co cons nsid ider er th the e change, the Contractor submits a quotation for reduced Prices or an earlier Completion Date or both to the Project Manager for acceptance. If the Project Manager accepts the quotation, he gives an instruction to change the Works Information, Informa tion, the Price Prices s and the Comple Completion tion Date accord accordingly. ingly.
If the Contractor is given access in order to correct a notified Defect but he has not corrected it within its defect correction period, the Project Mana Manager ger assesses the cost to the Employer of hav having ing the Def Defect ect correcte corrected d by oth other er people and the Contractor pays pays this amount. The Works Information is treated as having been changed to accept the Defect. If the Contractor is no nott gi give ven n ac acce cess ss in or orde derr to co corr rrec ectt a no noti tified fied De Defe fect ct before the defects date, the Project Manager assesses assesses the cost to the Contractor of correcting the Defect and the Contractor pays this amount. The Works Information is treated as having been changed to accept the Defect.
s t n t e s n o o c p m o c
t c a t a t r a n d o c
12
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses
5 Payment
Assessin Asse ssing g the the amount amount due 50 5 0 .1
The Project Manager assesses assesses the amount due at each assessment date. The first fir st as asse sess ssme ment nt da date te is de deci cide ded d by th the e Project Project Man Manage ager r to sui uitt th the e procedures of the Parties and is not later than the assessment interval after the starting date. Later assessment assessment dates occur .
.
50.2 50 .2
at the end of each assessment interval until four weeks after the Supervisor issues the Defects Certificate and at Completion of the whole of the works.
The Th e am amoun ountt du due e is . . .
the Price for Work Done to Date, plus other amounts to be paid to the Contractor , less amounts to be paid by or retained from the Contractor .
Any ta Any taxx wh whic ich h th the e la law w re requi quire res s th the e Employer to pa payy to th the e Contractor is included in the amount due. 50.3 50. 3
If no program programme me is identifi identified ed in the Contra Contract ct Data, Data, one quarter quarter of the Price Price for Work Done to Date is retained in assessments of the amount due until the Contractor has submitted a first programme to the Project Mana Manager ger for acceptance accept ance showing the infor information mation which this contract requires.
50.4 50 .4
In apayment sses essi sing ngthe the Contractor the amountt due, amoun due , the thsubmitted e Project Manager considers considers any application forass has on or before the assessment date. The Project Manager gives the Contractor details of how the amount due has been assessed.
50.5
The Project Mana Manager ger correc corrects ts any wrongly wrongly ass assess essed ed amo amount unt due in a lat later er payment certificate.
Paym Pa yment ent 51 51.1
51.2
The Project Manager certifies a payment within one week of each assessment date. The first payment is the amount due. Other payments are the change in the amount due since the last payment certificate. A payment is made by the Contractor to th the e Employer if th the e ch chang ange e re redu duce ces s th the e am amoun ountt due due.. Ot Othe herr payments are made by the Employer to the Contractor . Payments are in the currency of this contract unless otherwise stated in this contract. Each certified certified payment is made within three weeks weeks of of the assessme assessment nt date or, if a different period is stated in the Contract Data, within the period stated. If a ce cert rtifi ified ed pa paym ymen entt is la late te,, or if a pa paym ymen entt is la late te be beca caus use e th the e Project Manager does does not issue a certificate which he should issue, interest is paid on the late paym payment ent.. Int Intere erest st is ass assess essed ed fro from m the date by whi which ch the late payment pay ment should should have been made unt until il the date when the late payment is made, and is included in the first assessment after the late payment is made.
51.3 51. 3
If an amount amount due due is correc corrected ted in a later later certi certifica ficate te either either .
.
by the Project Manager in in relation to a mistake or a compensation event or following a decision of the Adjudicator or or the tribunal,
interest on the correcting amount is paid. Interest is assessed from the date when the incorrect amount was certified until the date when the correcting amount amo unt is cer certifi tified ed and is inc include luded d in the assessme assessment nt whi which ch inc includ ludes es the correcting amount. 51.4 51. 4
www.neccontract.com
Interest Intere st is calcu calculat lated ed on a daily daily basi basis s at the the interest rate and is compounded annually.
# copyright
nec 2013 13
s e e r s o u a c l c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t a t r a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Defin De fined ed Co Cost st 52 5 2 .1
All the Contractor ’s All ’ s co cost sts s wh whic ich h ar are e not include included d in th the e De Define fined d Co Cost st ar are e treated as included in the Fee. Defined Cost includes only amounts calculated using rates and percentages stated in the Contract Data and other amounts at op open en ma mark rket et or co compe mpeti titi tive vely ly te tend ndere ered d pr pric ices es wi with th de deduc ducti tion ons s fo forr al alll discounts, rebates and taxes which can be recovered.
s e e r s o u a c l c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c t a t r a a n d o c
14
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses
6 Compensation events
Compens Com pensati ation on eve events nts 60 60.1 60. 1
The fol follow lowing ing are com compens pensati ation on even events. ts. (1) The Project Manager gives an instruction changing the Works Information except a change made in order to accept a Defect or a chan change ge to the Works Informat Information ion provided provided by the Contractor for his design which is made either at his request or to comply with other Works Information Informa tion provided by the Employer . . .
(2) The Employer does does not allow access to and use of a part of the Site by the later of its access date and the date shown on the Accepted Programme. (3) The Employer does not provide something which he is to provide by the date for providing it shown on the Accepted Programme. (4) The Project Manager gives an instruction to stop or not to start any work or to change a Key Date. (5) The Employer or or Others . . .
do not work within the times shown on the Accepted Programme, do not work within the conditions stated in the Works Information or carry out work on the Site that is not stated in the Works Information.
(6) The Project Manager or or the Supervisor does does not reply to a communication from the Contractor within within the period required by this contract. (7) The Project Mana Manager ger gives gives an inst instruc ructio tion n for dealing dealing wit with h an obj object ect of value or of historical or other interest found within the Site. (8) The Project Manager or the Supervisor changes a decision which he has previously previo usly communicated communicated to the Contractor. (9) The Project Manager withholds withholds an acceptance (other than acceptance of a quotation for acceleration or for not correcting a Defect) for a reason not stated state d in this contract. (10) The Supervisor instructs instructs the Contractor to search for a Defect and no Defect is found unless the search is needed only because the Contractor gave gave insufficient insuffi cient notice of doing work obstr obstructing ucting a requir required ed test or inspec inspection. tion.
s e e r s o u a c l c
s e s u a n l i a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
(11) A test or inspection done by the Supervisor causes causes unnecessary delay. t c
(12) The Contractor encounters encounters physical conditions which . . .
are within the Site, are not weather conditions and an exp experi erience enced d con contra tractor ctor would have judged at the Con Contra tract ct Dat Date e to have such a small chance of occurring that it would have been unreasonable for him to have allowed for them.
Only the differ difference ence between the physic physical al condit conditions ions encountered encountered and those for which it would have been reasonable to have allowed is taken into account in assessing a compens compensation ation event. (13) A weather measurement is recorded . . .
within a calendar month, before the Completion Date for the whole of the works and at the place stated in the Contract Data
the value of which, by comparison with the weather data, is shown to occur on average less frequently than once in ten years.
www.neccontract.com
# copyright
nec 2013 15
t a t r a a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Only the difference between the weather measurement and the weather which the weather data show to occur on average less frequently than once in ten years is taken into account in assessing a compensation event. (14) An event which is an Employer ’s ’s risk stated in this contract. (15) The Project Mana (15) Manager ger certifies take over of a part of the works before both Completion and the Completion Date. (16) The Employer does does not provide materials, facilities and samples for tests and inspections as stated in the Works Information. (17) The Project Manager notifies notifies a correction to an assumption which he has stated state d about a compens compensation ation event. (18) A br (18) brea each ch of co cont ntra ract ct by th the e Employer whic which h is not one of th the e ot othe herr compensation compens ation events in this contract. (19) An event which
s e e r s o u a c l c
. .
stops the Contractor completing completing the works or stops sto ps the Contractor completing completing the works by th the e da date te sh show own n on th the e Accepted Programme,
and which
s e s u a n l i a c m n o i t p o
. .
.
60.2 60. 2
s e y r s a u a d l n c o n c o e i s t p o
In judging judging the physical physical conditi conditions ons for the purpos purpose e of ass assess essing ing a compensacompensation event, the Contractor is is assumed to have taken into account . . . .
60.3
s t n t e s n o o c p m o c
Notifying compensation 61 events 61. 61.1 1
t c t a t r a a n d o c
neither Party could prevent, an exp experi erience enced d cont contrac ractor tor wou would ld have judged at the Contract Contract Dat Date e to have such a small chance of occurring that it would have been unreasonable for him to have allowed for it and is not one of the other compensation events stated in this contract.
the Site Information, publiclyy availa publicl available ble information referred referred to in the Site Infor Information, mation, information obtainable from a visual inspection of the Site and other information information which an experi experienced enced contractor contractor could reasonably reasonably be expected to have or to obtain.
If there there is an ambigui ambiguity ty or inconsi inconsistency stency within the Site Site Informatio Information n (including (including the information referred to in it), the Contractor is is assumed to have taken into account the physical conditions more favourable to doing the work.
For compe compensat nsation ion even events ts which which aris arise e from from the Project Manager or or the Supervi sor giving giving an instruction, issuing a certificate, changing an earlier decision or correcting an assumption, the Project Manager notifies the Contractor of the compensation event at the time of that communication. He also instructs the Contractor quotations, unless the arises from a fault of puts the Contractor to or submit quotat quo tations ions have alr alread eadyy bee been n event submit sub mitted ted.. The Contractor the instruction instruction or changed decis decision ion into effec effect. t.
6 1 .2
The Project Mana Manager ger may instruct the Contractor to submit quotations for a proposed instruction or a proposed changed decision. The Contractor does does not put a proposed instruction or a proposed changed decision into effect.
6 1 .3
The Contractor notifies the Project Manager of an event which has happened or which he expects to happen as a compensation event if . .
the Contractor believes believes that the event is a compensation event and the Project Manager has has not notified the event to the Contractor .
If the Contractor does not notify a compensation event within eight weeks of becoming aware of the event, he is not entitled to a change in the Prices, the Completion Date or a Key Date unless the event arises from the Project Manager or or the Supervisor giving giving an instruction, issuing a certificate, changing an earlier decision or correcting an assumption.
16
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses 6 1 .4
If the Project Manager decides decides that an event notified by the Contractor . . . .
arises from a fault of the Contractor , has not happened and is not expected to happen, has no effect upon Defined Cost, Completion or meeting a Key Date or is not one of the compensation events stated in this contract
he notifies the Contractor of of his decision that the Prices, the Completion Date and an d th the e Ke Keyy Da Date tes s ar are e no nott to be ch chang anged ed.. If the Project Manag Manager er decides otherwise, he notifies the Contractor accordingly and instructs him to submit quotations. The Project Manager notifies notifies his decision to the Contractor and, and, if his decision is that the Prices, the Completion Date or the Key Dates are to be changed, instructs him to submit quotations before the end of either . .
one week after the Contractor ’s ’s notification or a longer period to which the Contractor has has agreed.
If the Project Manager does not notify his decision, the Contractor may notify the Project Mana Manager ger of his failure. A failure by the Project Manag Manager er to to reply within two weeks of this notification is treated as acceptance by the Project Manager that that the event is a compensation event and an instruction to submit quotations. 6 1 .5
If the Project Mana Manager ger decide decides s tha thatt the Contractor did did no nott giv give e an ea earl rlyy warning of the event which an experienced contractor could have given, he noti no tifie fies s th this is de deci cisi sion on to th the e Contractor when when he in inst stru ruct cts s hi him m to su subm bmit it quotations.
6 1 .6
If the Project Manager decides that the effects of a compensation event are too unce uncerta rtain in to be for foreca ecast st rea reason sonably ably,, he sta states tes ass assumpt umption ions s abo about ut the event in his instruction to the Contractor to to submit quotations. Assessment of the event is based on these assumptions. If any of them is later found to have been wrong, the Project Manager notifies notifies a correction.
61.7 61. 7 Quotations for 62 compensation events 62 62.1 .1
62.2
6 2 .3
A compens compensati ation on event event is is not noti notified fied afte afterr the defects date.
Afterr disc Afte discus ussi sing ng with with the the Contractor different ways of dealing with the compensation event which are practicable, the Project Mana Manager ger may instruct the Contractor to sub submit mit alt altern ernati ative ve quot quotati ations. ons. The Contractor submit submits s the required requir ed quotati quotations ons to the Project Mana Manager ger and may sub submit mit quot quotati ations ons for other oth er met method hods s of dea dealin ling g wit with h the com compens pensati ation on eve event nt whi which ch he con consid siders ers practicable. Quotations for Quotations for compensatio compensation n events events comprise comprise proposed proposed changes changes to the Prices Prices and an d any de dela layy to th the e Co Compl mplet etio ion n Da Date te an and d Ke Keyy Da Date tes s as asse sess ssed ed by th the e Contractor . Th The e Contractor submi submits ts de deta tail ils s of his as asse sess ssmen mentt wi with th ea each ch quotation. If the programme for remaining work is altered by the compensation event, the Contractor includes includes the alterations to the Accepted Programme in his quotat quotation. ion. The Contractor submits quotations within three weeks of being instructed to do so by the Project Manager . The Project Manager replies replies within two weeks of the submission. His reply is . . .
.
6 2 .4
www.neccontract.com
an instruction to submit a revised quotation, an acceptance of a quotation, a notification that a proposed instruction will not be given or a proposed changed decision will not be made or a notification that he will be making his own assessment.
The Project Manag Manager er instructs instructs the Contractor to submit a revised quotation only after explaining his reasons for doing so to the Contractor . The Contractor submits the revised quotation within three weeks of being instructed to do so.
# copyright
nec 2013 17
s e e r s o u a c l c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c t a t r a a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract 6 2 .5
The Project Manager extends extends the time allowed for . .
the Contractor to to submit quotations for a compensation event and the Project Manager to to reply to a quotation
if the Project Mana Manager ger and the Contractor agree to the extension before the submission or reply is due. The Project Manag Manager er notifies notifies the extens extension ion that has been agreed to the Contractor . 6 2 .6
s e e r s o u a c l c
If the Project Manager does not reply to a quotation within the time allowed, Projectfor Manager the Contractor may notify of his failure. If the submitted more than one the quotation the compensation event, he Contractor states in his notification which quotation he proposes is to be accepted. If the Project Manager does not reply to the notification within two weeks, and unless the quota quo tati tion on is fo forr a pr propo opose sed d in inst struc ructi tion on or a pr propo opose sed d ch chan anged ged de deci cisi sion on,, the Contractor ’s ’s notification is treated as acceptance of the quotation by the Project Manager .
Assessing compensation 63 events 63. 63.1 1
The changes changes to the Prices Prices are assess assessed ed as the effect effect of the compensat compensation ion event upon .
s e s u a n i l a c m n o i t p o
. .
the actual Defined Cost of the work already done, the forecast Defined Cost of the work not yet done and the resulting Fee.
If the compensation event arose from the Project Mana Manager ger or the Supervisor giving an instruction, issuing a certificate, changing an earlier decision or correcting an assumption, the date which divides the work already done from the work not yet done is the date of that communication. In all other cases, the date is the date of the notification of the compensation event.
s y e s r a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
63.2 63. 2
If the effec effectt of a compensat compensation ion event event is to reduce reduce the total total Defined Defined Cost, Cost, the Prices are not reduced except as stated in this contract.
63.3 63. 3
A delay delay to the Comple Completio tion n Date is asse assesse ssed d as the length length of time time that, that, due to the compensation compensation event, planned Completion Completion is later than planned Completion as shown on the Accepted Programme. A delay to a Key Date is assessed as the length length of time tha that, t, due to the compensa compensatio tion n eve event, nt, the pla planned nned date when the Condition stated for a Key Date will be met is later than the date shown on the Accepted Programme.
63.4 63 .4
The rig The right hts s of of the the Employer and the Contractor to changes to the Prices, the Comp Co mple leti tion on Da Date te an and d th the e Ke Keyy Da Date tes s ar are e th thei eirr on only ly ri righ ghts ts in re resp spec ectt of a compensation event.
6 3 .5
If the Project Mana Manager ger has not notifie ified d the Contractor of his decision decision tha thatt the Contractor did not give an early warning of a compensation event which an experi exp erienc enced ed con contra tracto ctorr cou could ld have given, the eve event nt is ass assess essed ed as if the
t c t a t r a a n d o c
63.6 63. 6
18
# copyright
nec 2013
Contractor had had given early warning. Assess Ass essment ment of the effect effect of a com compens pensatio ation n event include includes s risk allowanc allowances es for cost and time for matters which have a significant chance of occurring and are at the Contractor ’s ’s risk under this contract.
63.7 63 .7
Assess Asse ssme ments nts are based based upon the as assu sumpt mptio ions ns that the Contractor reacts competently and promptly to the compensation event, that any Defined Cost and time due to the event are rea reason sonably ably incurred incurred and tha thatt the Accepted Accepted Programme can be changed.
63.8
A compensatio compensation n event which is is an instruc instruction tion to change the Works Works Informati Information on in order to resolve an ambiguity or inconsistency is assessed as if the Prices, the Completio Completion n Dat Date e and the Key Dat Dates es wer were e for the int interp erpret retati ation on mos mostt favourable to the Party which did not provide the Works Information.
63.9 63. 9
If a change change to the Works Infor Informat mation ion makes makes the descri descripti ption on of the Conditi Condition on for a Key Date incorrect, the Project Mana Manager ger corrects corrects the descr description. iption. This correction is taken into account in assessing the compensation event for the change to the Works Inform Information. ation.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses The Project The Project Manager ’s ’s assessments
64 64.1
The Project Manager assesses assesses a compensation event .
.
.
.
6 4 .2
has not submitted submit ted a him progra pro gramme mme ororalt altera eratio tions ns to a pro progra gramme mme whi which ch this contract requires to submit if, when the Contractor submits submits quotations for a compensation event, the Project Manager has has not accepted the Contractor ’s ’s latest programme for one of the reasons stated in this contract.
The Project Manag Manager er assesses a compensation event using his own assessment of the programme for the remaining work if . .
Implementing compensation events
if the Contractor has has not submitted a quotation and details of his assessment within the time allowed, if the Project Manager decides that the Contractor has not assessed the compensation event correctly in a quotation and he does not instruct the Contractor to to submit a revised quotation, if, when the Contractor submits submits quotations for a compensation event, he
there is no Accepted Programme or the Contractor has has no nott su subm bmit itte ted d a pr progr ogramm amme e or al alte tera rati tion ons s to a programme for acceptance as required by this contract.
6 4 .3
The Project Mana Manager ger notifies notifies the Contractor of his assessment of a compensati sa tion on ev event ent an and d giv gives es him de deta tail ils s of it wi with thin in th the e pe peri riod od al allo lowe wed d fo forr th the e Contractor ’s ’ s su submi bmiss ssio ion n of hi his s qu quot otat atio ion n fo forr th the e sa same me ev even ent. t. Th This is pe peri riod od Project Mana Manager ger ’s star st arts ts wh when en th the e ne need ed fo forr th the e Project ’ s ass assess essment ment bec become omes s apparent.
6 4 .4
If the Project Manager does does not assess a compensation event within the time Manager ger of his failure. If the allowed, the Contractor may notify the Project Mana Contractor submitt submitted ed mor more e tha than n one quo quotat tation ion for the com compens pensati ation on eve event, nt, he states in his notification which quotation he proposes is to be accepted. If the Project Mana Manager ger does not reply within two weeks of this notification the notific not ificati ation on is tre treate ated d as acc accepta eptance nce of the Contractor’s quotat quotation ion by the Project Manager .
65 65.1 65. 1
A compen compensat sation ion even eventt is imp implem lemente ented d when when .
. .
65.2 65 .2
the Project Project Ma Manag nager er noti notifie fies s hi his s ac acce cept ptan ance ce of th the e Contractor ’s ’s quotation, the Project Manager notifies notifies the Contractor of of his own assessment or a Contractor ’s ’ s quo quota tati tion on is tr trea eated ted as hav havin ing g be been en ac acce cept pted ed by th the e Project Manager .
The Th e as asse sess ssmen mentt of a co compe mpensa nsati tion on event event is not revise revised d if a fo fore reca cast st upon which it is based is shown by later recorded information to have been wrong.
s e e r s o u a c l c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
www.neccontract.com
# copyright
nec 2013 19
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract
7 Title
The Employer ’s The Employer ’s title to 70 70.1 .1 Plant and Mater Materials ials 70
70.2 70 .2
s e e r s o u a c l c
Marking Equipment, 71 Plant and Mater Materials ials 71.1 outside outsid e the Working Areas
Whateve Whate verr ti titl tle e th the e Contractor has to Plant and Materials which is outside the Working Areas passes to the Employer if the Supervisor has marked it as for this contract. Whatev What ever er titl title e the Contractor has has to Pl Plan antt and Ma Mate teri rial als s pas passe ses s to th the e Employer if it has been brought within the Working Areas. The title to Plant and Materials passes back to the Contractor if if it is removed from the Working Areas with the Project Manager ’s ’s permission.
The Supervisor marks Equipment, Plant and Materials which are outside the Working Worki ng Areas if . .
s e s u a n l i a c m n o i t p o
Removi Rem oving ng Equi Equipme pment nt 72 7 2 .1
Objects and materials within the Site
s e y r s a u a d l n c o n c o e i s t p o
this contract identifies them for payment and the Contractor has prepared them for marking as the Works Information requires.
The Contractor removes Equipment from the Site when it is no longer needed unless the Project Manager allows allows it to be left in the works.
73 7 3 .1
The Contractor has no ti titl tle e to an ob obje ject ct of va valu lue e or of hi hist stor oric ical al or ot othe herr interest within the Site. The Contractor notifies notifies the Project Manager when when such Manager ger instructs an object is found and the Project Mana instructs the Contractor how to deal with it. The Contractor does does not move the object without instructions.
7 3 .2
The Contractor has title to materials from excavation and demolition only as stated state d in the Works Information.
s t n t e s n o o c p m o c
t c a t r a t a n d o c
20
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses
8 Risks and insurance
Employer ’s ’ s ri risk sks s
80 80.1 80 .1
The Th e fo foll llow owin ing g ar are e Employer ’s ’s risks. .
Claims, proceedings, compensation and costs payable which are due to .
.
.
.
.
use or occupation of the Site by the works or for the purpose of the works which is the unavoidable result of the works, negligence, breach of statutory duty or interference with any legal right by the Employer or by any person employed by or contracted to him except the Contractor or or a fault of the Employer or or a fault in his design.
Loss of or damage to Plant and Materials supplied to the Contractor by the Employer , or by Others on the Employer ’s ’s behalf, until the Contractor has received and accepted them. Loss of or damage to the works, Plant and Materials due to .
.
.
war, civil war, rebellion, revolution, insurrection, military or usurped power, stri st rike kes, s, ri riot ots s an and d ci civi vill co commo mmoti tion on no nott co confin nfined ed to th the e Contractor ’s ’s employees or radioactive contamination.
.
Loss of or wear orloss, damage to damage the partsoccurring of the works taken over by the Employer , except wear or before the issue of the Defects Certificate which is due to . .
.
.
.
The Contractor The Contractor ’s ’ s ri risk sks s 81 81.1 81 .1
a Defect which existed at take over, an event occurring before take over which was not itself an Employer ’s ’s risk or the activities of the Contractor on on the Site after take over.
Loss of or wear or damage to the works and any Equipment, Plant and Mater Mat eria ials ls re reta tain ined ed on th the e Si Site te by th the e Employer after after a ter termina minatio tion, n, except loss, wear or damage due to the activities of the Contractor on on the Site after the termination. Additional Employer ’s ’s risks stated in the Contract Data.
s e e r s o u a c l c
s e s u a n l i a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
From Fr om th the e starting date until the Defects Certificate has been issued, the risks which are not carried by the Employer are are carried by the Contractor . t c
Repai Re pairs rs 82 82.1
Inde In demn mnit ityy
83 83.1 83. 1
83.2 83. 2
www.neccontract.com
Until the the Defects Defects Certifica Certificate te has been been issued issued and unless unless otherwise otherwise instru instructed cted by the Project Manager, the Contractor promptly replaces loss of and repairs damage to the works, Plant and Materials.
Each Par Each Party ty indemnifie indemnifies s the oth other er against against claims, claims, pro procee ceedin dings, gs, compens compensatio ation n and costs due to an event which is at his risk. The liabi liabilit lityy of each Party Party to indemnif indemnifyy the other other is reduced reduced if events events at the other Party’s risk contributed contributed to the claims claims,, procee proceedings, dings, compensation compensation and costs. The reduction is in proportion to the extent that events which were at the other Party’s risk contr contributed, ibuted, taking into account each Party Party’s ’s respo responsibil nsibilities ities under this contract.
# copyright
nec 2013 21
a t r a t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Insuran rance ce cov cover er 84 Insu 8 4 .1
84.2 84 .2
The Contractor provides the insurances stated in the Insurance Table except any insurance which the Employer is is to provide as stated in the Contract Data. The Contractor provides provides additional additional insura insurances nces as stated in the Contract Data. The insur insuran ance ces s ar are e in the joint joint nam names es of th the e Pa Part rtie ies s and provi provide de cover cover fo forr event ev ents s wh whic ich h ar are e at th the e Contractor ’s ’ s ri risk sk fr from om th the e starting starting date until until the Defects Defect s Certifi Certificate cate or a termi termination nation certificate certificate has been issued. INSURANCE TABLE
s e e r s o u a c l c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
Insuran Insu rance ce pol polici icies es 85 85.1 85 .1
t c a t r a t a n d o c
# copyright
nec 2013
Loss of or damage to the works, Plant and Materials
The replacement cost, including the amount stated in the Contract Data for the replacement of any Plant and Materials provided by the Employer
Loss Lo ss of or da dama mage ge to Eq Equi uipm pmen entt
The Th e re repl plac acem emen entt co cost st
Liability for loss of or damage to propertyy (excep propert (exceptt the works, Plant and Materials Materi als and Equipmen Equipment) t) and liability for bodily injury to or death of a person (not an employee of the Contractor ) caused by activity in connection with this contract
The amount stated in the Contract Data for any one event with cross liability liabil ity so that the insura insurance nce applies applie s to the Parties separately separately
Liability for death of or bodily injury to employees of the Contractor arising arising out of and in the course of their employment in connection with this contract
The greater of the amount required by the applicable law and the amount stated in the Contract Data for any one event
Before Befo re the starting date and on each renewal of the insurance policy until the defects date, the Contractor submits submits to the Project Manage Manager r for acceptanc acceptance e certificates which state that the insurance required by this contract is in force. The certificates are signed by the Contractor ’s ’s insurer or insurance broker. A reason for not accepting the certificates is that they do not comply with this contract. Ins Insuran urance ce policiesand policies include include waiver wai ver by the insure insurers rs of their subrwhere subrogat ogation ion rights rights against directors othera employees of every insured except there is fraud.
85.3
The Parties Parties comply with the the terms terms and conditi conditions ons of the insurance insurance polici policies. es.
85.4 85. 4
Any amount amount not recov recovere ered d from from an insure insurerr is borne borne by by the Employer for for events which are at his risk and by the Contractor for for events which are at his risk.
Insurance by the Employer the Employer 87 8 7 .1
Minimum amount of cover or minimum limit of indemnity
85.2 85. 2
If the Contractor the Contractor 86 does not insure 86.1
22
Insurance against
The Employer may insure a risk which this contract requires the Contractor to insure if the Contractor does does not submit a required certificate. The cost of this insurance to the Employer is is paid by the Contractor .
The Project Manager submits policies and certificates for insurances provided by the Employer to to the Contractor for for acceptance before the starting date an and d afterw aft erward ards s as the Contractor instructs. instructs. The Contractor accepts accepts the polic policies ies and certificates if they comply with this contract.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses 8 7 .2
The Contractor ’s ’s acceptance of an insurance policy or certificate provided by the Employer does not cha change nge the responsib responsibili ility ty of the Employer to provide the insurances stated in the Contract Data.
8 7 .3
The Contractor may may insure a risk which this contract requires the Employer to insure if the Employer does does not submit a req requir uired ed pol policy icy or cer certifi tificat cate. e. The cost of this insurance to the Contractor is is paid by the Employer .
s e e r s o u a c l c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
www.neccontract.com
# copyright
nec 2013 23
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract
9 Termination
Termination 90 90.1 90 .1
90.2
The Contractor may ter termina minate te only for a reas reason on iden identifie tified d in the Terminatio Termination n Table. The Employer may may terminate for any reason. The procedures followed and the amounts due on termination are in accordance with the Termination Table. TERMINATION TABLE
s e e r s o u a c l c
s e s u a n i l a c m n o i t p o
Terminating Party
Reason
Procedure
Amount due
The Employer
A reason other than R1–R21
P1 and P2
A1, A2 and A4
R1–R15 or R18
P1, P2 and P3
A1 and A3
R17 or R20
P1 and P3
A1 and A2
R21
P1 and P4
A1 and A2
R1–R10, R16 or R19
P1 and P4
A1, A2 and A4
R17 or R20
P1 and P4
A1 and A2
The Contractor
s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
If eithe eitherr Party Party wish wishes es to termi terminat nate e the Contractor ’s ’s obligation to Provide the Works he notifies the Project Manager and and the other Party giving details of his reason for termin terminating. ating. The Project Manager issues issues a termination certificate to both Parties promptly if the reason complies with this contract.
The procedure procedures s for termin termination ation are are implement implemented ed immediatel immediatelyy after the Project Manager has has issue issued d a termi termination nation certificate. certificate.
90.4 90 .4
Within With in thirte thirteen en weeks weeks of termin terminat atio ion, n, the Project Mana Manager ger certifi certifies es a fina finall payment to or from the Contractor which which is the Project Manager ’s ’s assessment of th the e amo amount unt due on te termi rmina nati tion on le less ss th the e to tota tall of pr prev evio ious us pa payme yment nts. s. Payment is made within three weeks of the Project Manager ’s ’s certificate.
90.5 90. 5
After a termina After terminatio tion n certific certificate ate has has been issue issued, d, the Contractor does does no further work necessary to Provide the Works.
Either Party Either Party may termina terminate te if the other other Party Party has done one of the follow following ing or its equivalent. .
If the other Party is an individual and has . . . .
.
. .
. .
.
# copyright
nec 2013
presented his petition for bankruptcy (R1), had a bankruptcy order made against him (R2), had a receiver appointed over his assets (R3) or made an arrangement with his creditors (R4).
If the other Party is a company or partnership and has .
90.3
Reason Rea sons s for ter termin minati ation on 91 91.1 91. 1
24
had a winding-up order made against it (R5), had a provisional liquidator appointed to it (R6), passed a resolution for winding-up (other than in order to amalgamate or reconstruct) (R7), had an administration order made against it (R8), had ha d a re rece ceiv iver er,, re rece ceiv iver er and ma mana nager ger,, or ad admi mini nist stra rati tive ve re rece ceiv iver er appoin app ointed ted over the whole or a sub substa stanti ntial al par partt of its undertak undertaking ing or assets (R9) or made an arrange arrangement ment with its creditors (R10).
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Core Clauses 9 1 .2
The Employer may te term rmin inat ate e if th the e Project Mana Manager ger has notified notified tha thatt the Contractor has has defaulted in one of the following ways and not put the default right within four weeks of the notification. . . .
91.3
The Employer may te term rmin inat ate e if th the e Project Mana Manager ger has notified notified that that the Contractor has has de defa faul ulte ted d in on one e of th the e fo foll llowi owing ng wa ways ys and not st stop oppe ped d defaulting defaul ting within four weeks of the notification. notification. . .
9 1 .4
Substantiallyy failed to comply with his obliga Substantiall obligations tions (R11). Not provided a bond or guarantee which this contract requires (R12). Appoi App oint nted ed a Su Subc bcon ontr trac acto torr fo forr su subs bsta tanti ntial al wo work rk be befo fore re th the e Project Manager has has accepted the Subcontractor (R13).
Substantially hindered the Employer or or Others (R14). Substantiall Substa ntiallyy broken a health or safety regulation regulation (R15).
The Contractor may terminate if the Employer has not paid an amount due under the contract within eleven weeks of the date that it should have been paid (R16).
91.5 91. 5
Either Party Either Party may termina terminate te if the Parties Parties have have been releas released ed under under the law from further performance of the whole of this contract (R17).
91.6
If the Project Manager has has instructed the Contractor to to stop or not to start any substantial work or all work and an instruction allowing the work to re-start or start has not been given within thirteen weeks, .
.
.
9 1 .7
the Employer may may terminate if the instruction was due to a default by the Contractor (R18), (R18), the Contractor may terminate if the instruction was due to a default by the Employer (R19) (R19) and either Party may terminate if the instruction was due to any other reason (R20).
The Employer may may terminate if an event occurs which . .
stops the Contractor completing completing the works or stops sto ps the Contractor completing completing the works by th the e da date te shown shown on th the e Accepted Programme and is forecast to delay Completion by more than 13 weeks,
and which . .
Procedures Proce dures on termin termination ation 92 92.1 92 .1
92.2 92. 2
www.neccontract.com
neither Party could prevent and an exp experi erience enced d con contra tractor ctor would have judged at the Con Contra tract ct Dat Date e to have such a small chance of occurring that it would have been unreasonable for him to have allowed for it (R21).
On te term rmin inat atio ion, n, th the e Employer may may complete the works and may use any Plant and Materials to which he has title (P1). The proced procedure ure on termina terminatio tion n also include includes s one or more of the follow following ing as set out in the Termination Table. P2
The Employer may instruct the Contractor to leave the Site, remove any Equipment, Plant and Materials from the Site and assign the benefit of any subcontract or other contract related to performance of this contract to the Employer .
P3
The Employer may may use any Equipment to which the Contractor has has title to complete complet e the works. Th The e Contractor promptly promptly rem remove oves s the Equ Equipme ipment nt from fro m Sit Site e whe when n the Project Mana Manager ger notifies notifies him tha thatt the Employer no longer requires it to complete the works.
P4
The Contractor leaves leaves the Working Areas and removes the Equipment.
# copyright
nec 2013 25
s e e r s o u a c l c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Paymen mentt on term termina inatio tion n 93 Pay 93.1 93. 1
The amoun amountt due on termi terminat nation ion incl include udes s (A1) (A1) . .
an amount due assessed as for normal payments, the Defined Cost for Plant and Materials . .
.
. .
93.2 93. 2 s e e r s o u a c l c
s e s u a n l i a c m n o i t p o
within the Working Areas or to which the Employer has title title and of wh whic ich h th the e Contractor has to accept delivery,
other Defined Cost reasonably incurred in expectation of completing the whole of the works, any amounts retained by the Employer and and a deduction of any un-repaid balance of an advanced payment.
The amount amount due on termin terminati ation on also inclu includes des one one or more of the follo followin wing g as set out in the Termination Table. A2
The forecas forecastt Defined Defined Cost of removing removing the the Equipment. Equipment.
A3
A deduction deduction of the forec forecast ast of the additi additional onal cost cost to the Employer of of com works pleting the whole of the .
A4
The direct fee percentage applied to
.
.
for Options A, B, C and D, any excess of the total of the Prices at the Contract Date over the Price for Work Done to Date or for Options E and F, any excess of the first forecast of the Defined Cost for the works over the Price for Work Done to Date less the Fee.
s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
26
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd
MAIN OPTION CLAUSES
Option A: Priced contract with activity schedule
Identified and defined 11 terms 11 11.2 .2
(20) The (20) The Activ Activit ityy Sched Schedul ule e is the activity sched schedule ule unless unless lat later er chan changed ged in accordance with this contract. (22) Defined Cost is the cost of the components in the Shorter Schedule of Cost Components whether work is subcontracted or not excluding the cost of preparing quotations for compensation events. (27) The Price for Work Done to Date is the total of the Prices for . .
each group of completed activities and each completed activity which is not in a group.
A completed activity is one which is without Defects which would either delay or be covered by immediately following work. (30) The Prices (30) Prices ar are e th the e lu lump mp su sum m pr pric ices es fo forr ea each ch of th the e ac acti tivi viti ties es on th the e Activity Activ ity Schedule unless later changed in accord accordance ance with this contract. contract. The programme 31
3 1 .4
The Contractor provide provides s inf inform ormati ation on whi which ch sho shows ws how eac each h act activi ivity ty on the Activi Act ivity ty Sch Schedu edule le rel relate ates s to the ope operat ration ions s on eac each h prog program ramme me whi which ch he submits for acceptance.
Accele Acc elerat ration ion 36
3 6 .3
Whe hen n th the Project Project Manag Manager er accep accepts ts a quota quotati tion on fo forr an ac acce cele lerat ratio ion, n, he changes the Prices, the Completion Date and the Key Dates accordingly and accepts the revised programme.
The Activity Schedule 54
54.1
Information Informat ion in the Activity Activity Schedule is not Works Informat Information ion or Site Informati Information. on.
5 4 .2
If the Contractor changes a planned method of working at his discretion so that the activities on the Activity Schedule do not relate to the operations on the Accepted Programme, he submits a revision of the Activity Schedule to the Project Manager for for acceptance.
54.3
A reason reason for not accepting accepting a revision revision of of the Activi Activity ty Schedule Schedule is is that . .
.
Assessing compensation events
it does not comply with the Accepted Programme, any changed Prices are not reasonably distributed between the activities or the total of the Prices is changed.
63
63.10 63. 10 If the effect effect of a compensat compensation ion event event is to red reduce uce the total total Defined Cost Cost and the event is . .
a change to the Works Information or a correction of an assumption stated by the Project Manager for for assessing an earlier compensation event,
the Prices are reduced. 63.12 63. 12 Assess Assessment ments s for changed changed Pri Prices ces for com compens pensati ation on eve events nts are in the form of changes to the Activity Schedule.
www.neccontract.com
# copyright
nec 2013 27
s e e r s o u c l a c
s e s u a n l i a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract 63.1 .14 4 If th the e Project Manager and and the Contractor agree, agree, rates and lump sums may be 63 used to assess a compensation event. Implementing 65 65.4 .4 compensation events 65
Payment Paym ent on termi terminatio nation n
The ch The chan ange ges s to th the e Pr Pric ices es,, th the e Co Comp mple leti tion on Da Date te an and d th the e Ke Keyy Da Date tes s ar are e included include d in the notification implementing implementing a compens compensation ation event.
93
93.3 93 .3
The amount amount due on te term rmin inat ation ion is as asse sess ssed ed wi witho thout ut ta taki king ng gr grou oupi ping ng of activities into account.
s e e r s o u c l a c
s e s u a n i l a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
28
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Main Option Clauses
Option B: Priced contract with bill of quantities
Identified and defined 11 11.2 .2 terms 11
(21) (2 1) The The Bill Bill of of Quant Quantit itie ies s is the the bill of quantities as changed in accordance with this contract to accommodate implemented compensation events and for accepted quotations for acceleration. (22) Defined Cost is the cost of the components in the Shorter Schedule of Cost Components whether work is subcontracted or not excluding the cost of preparing quotations for compensation events. (28) The Price for Work Done to Date is the total of .
.
the quantity quantity of the work which the Contractor has com comple pleted ted for eac each h item in the Bill of Quantities multiplied by the rate and a pr prop oport ortio ion n of ea each ch lu lump mp su sum m wh whic ich h is th the e pr prop oport ortio ion n of th the e wo work rk covered by the item which the Contractor has has completed.
Complet Compl eted ed wo work rk is wo work rk wi with thou outt De Defe fect cts s wh whic ich h wo woul uld d ei eith ther er de dela layy or be covered by immediately following work. (31) The Prices are the lump sums and the amounts obtained by multiplying the rates by the quantities for the items in the Bill of Quantities. Accele Acc elerat ration ion 36
3 6 .3
Whe hen n th the Project Project Manag Manager er accep accepts ts a quota quotati tion on fo forr an ac acce cele lerat ratio ion, n, he changes the Prices, the Completion Date and the Key Dates accordingly and accepts the revised programme.
The Bill of Quantities 55
55.1 Compensa Com pensation tion event events s
Information Informat ion in the Bill Bill of Quantitie Quantities s is not Works Works Information Information or Site Informati Information. on.
60
60.4 60. 4
A differenc difference e between between the final final total quanti quantity ty of work done done and the quantity quantity stated for an item in the Bill of Quantities is a compensation event if . .
.
the difference does not result from a change to the Works Information, the difference causes the Defined Cost per unit of quantity to change and the rate in the Bill of Quantities for the item multiplied by the final total quantity of work done is more than 0.5% of the total of the Prices at the Contract Date.
If th the e De Defin fined ed Co Cost st per un unit it of qu quant antit ityy is re reduc duced ed,, th the e af affe fect cted ed ra rate te is reduced.
www.neccontract.com
60.5 60. 5
A differe difference nce betwee between n the final total total quanti quantity ty of work work done and the the quantity quantity for for an item stated in the Bill of Quantities which delays Completion or the meeting of the Condition stated for a Key Date is a compensation event.
6 0 .6
The Project Mana Manager ger correc corrects ts mis mistak takes es in the Bil Billl of Qua Quanti ntitie ties s whi which ch are departures from the rules for item descriptions and for division of the work into in to it items ems in th the e method are e du due e to am ambi bigu guit itie ies s or method of measu measuremen rementt or ar incons inc onsist istenc encies ies.. Each suc such h cor correc rectio tion n is a com compens pensati ation on eve event nt whi which ch may lead to reduce reduced d Price Prices. s.
60.7 60 .7
In as asse sess ssin ing g a co comp mpen ensat satio ion n ev even entt wh whic ich h re resu sult lts s fr from om a co corr rrec ecti tion on of an incons inc onsist istenc encyy bet betwee ween n the Bil Billl of Qua Quantit ntities ies and ano anothe therr doc documen ument, t, the Contractor is is assumed to have taken the Bill of Quantities as correct.
# copyright
nec 2013 29
s e e r s o u c l a c
s e s u a n i l a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Assessing compensation 63 63.10 10 If the effect effect of a compensati compensation on event is to red reduce uce the total Defined Defined Cost and events 63.
the event is . .
a change to the Works Information or a correction of an assumption stated by the Project Manager for for assessing an earlier compensation event,
the Prices are reduc reduced. ed. 63.13 63. 13 Assess Assessment ments s for changed changed Pri Prices ces for com compens pensati ation on eve events nts are in the form of changes to the Bill of Quantities. .
For the whole or a part of a compensation event for work not yet done and for which there is an item in the Bill of Quantities, the changes are . .
s e e r s o u c l a c
.
.
s e s u a n i l a c n m o i t p o
.
a changed rate, a changed quantity or a changed lump sum.
For the whole or a part of a compensation event for work not yet done and for which there is no item in the Bill of Quantities, the change is a new pri priced ced ite item m whi which, ch, unle unless ss the Project Manag Manager er and the Contractor agree otherwise , is compiled in accordance with the method of measurement. For the whole or a part of a compensation event for work already done, the change is a new lump sum item.
If the Project Manager and and the Contractor agree, agree, rates and lump sums may be used to assess a compensation event. Implementing 65 compensation events 65 65.4 .4
s e y r s a u a d l n c o n c o e i s t p o
The ch The chan ange ges s to th the e Pr Pric ices es,, th the e Co Comp mple leti tion on Da Date te an and d th the e Ke Keyy Da Date tes s ar are e included include d in the notification implementing implementing a compens compensation ation event.
s t n t e s n o o c p m o c
t c a t r a t a n d o c
30
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Main Option Clauses
Option C: Target contract with activity schedule
Identified and defined 11 terms 11 11.2 .2
(20) The (20) The Activ Activit ityy Sched Schedul ule e is the activity sched schedule ule unless unless lat later er chan changed ged in accordance with this contract. (23) Defined Cost is .
the amount of payments due to Subcontractors for work which is subcontracted without taking account of amounts deducted for . .
. . .
retention, payment pay ment to the Employer as a res result ult of the Sub Subcon contrac tractor tor failing failing to meet a Key Date, the correction of Defects after Completion, payments to Others and the supply of equipment, supplies and services included in the charge for overhead cost within the Working Areas in this contract
and .
the cost of components in the Schedule of Cost Components for other work
less Disallowed Cost. (25) Disallowed Cost is cost which the Project Manager decides decides is not justified by the Contractor ’s ’s accounts and record records, s, should not have been paid to a Subcontractor or supplier in accordance with his contract, was incurred only because the Contractor did did not . .
.
.
.
follow an acc follow accept eptance ance or pro procur cureme ement nt pro proced cedure ure sta stated ted in the Wor Works ks Information or give an early warning which this contract required him to give
and the cost of . .
.
.
.
correcting Defects after Completion, corre cor recti cting ng Def Defect ects s cau cause sed d by th the e Contractor not not co comp mply lyin ing g wi with th a cons co nstr trai aint nt on ho how w he is to Pr Prov ovid ide e th the e Wo Work rks s st stat ated ed in th the e Wo Work rks s Information, Plant Pla nt and Mate Materia rials ls not used to Pro Provid vide e the Works (after allowing allowing for reas re ason onabl able e wa wast stage age)) unl unles ess s re resu sult ltin ing g fr from om a ch chang ange e to th the e Wo Work rks s Information, resources not used to Provide the Works (after allowing for reasonable availab ava ilabili ility ty and uti utilis lisati ation) on) or not tak taken en awa awayy fro from m the Wor Workin king g Are Areas as when the Project Manager requested requested and prepara prep aratio tion n for and con conduc ductt of an adj adjudi udicat cation ion or pro procee ceedin dings gs of the tribunal.
(29) Th (29) The e Pr Pric ice e fo forr Wo Work rk Do Done ne to Da Date te is th the e to tota tall De Define fined d Co Cost st wh whic ich h th the e Projectt Mana Projec Manager ger forecasts will have been paid by the Contractor before before the next assessment date plus the Fee. (30) The Prices (30) Prices ar are e th the e lu lump mp su sum m pr pric ices es fo forr ea each ch of th the e ac acti tivi viti ties es on th the e Activity Activ ity Schedule unless later changed in accord accordance ance with this contract. contract. Provid Pro viding ing the Wor Works ks 20
20.3
www.neccontract.com
The Contractor advises the Project Mana Manager ger on the practical implications of the design of the works and on subcontracting arrangements.
# copyright
nec 2013 31
s e e r s o u c l a c
s e s u a n l i a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract 2 0 .4
The Contractor prepares forecasts of the total Defined Cost for the whole of the works in con consul sultat tation ion wit with h the Project Mana Manager ger and su subm bmit its s th them em to the Project Mana Manager ger . For Foreca ecasts sts are pre prepar pared ed at the interval intervals s sta stated ted in the Contrac Cont ractt Dat Data a fro from m the starting starting date until until Com Comple pletio tion n of the whole of the works. An expl explanat anation ion of the changes changes mad made e sin since ce the previous previous for foreca ecast st is submitted with each forecast.
Subcontra Subc ontracting cting 26
2 6 .4
The Contractor submits the proposed contract data for each subcontract for acceptance accept ance to the Project Manager if if . .
an NEC contract is proposed and the Project Manager instructs instructs the Contractor to to make the submission.
A reason for not accepting the proposed contract data is that its use will not allow the Contractor to to Provide the Works. s e e r s o u c l a c
The programme 31
3 1 .4
s e s u a n l i a c n m o i t p
Accele Acc elerat ration ion 36
3 6 .3
Whe hen n th the Project Project Manag Manager er accep accepts ts a quota quotati tion on fo forr an acc accel eler erat atio ion, n, he changes the Prices, the Completion Date and the Key Dates accordingly and accepts the revised programme.
Tests and inspections 40
40. 0.7 7
o s e y r s a u a d l n c o n c o e i s t p o
The Contractor provide provides s inf inform ormati ation on whi which ch sho shows ws how eac each h act activi ivity ty on the Activi Act ivity ty Sch Schedul edule e rel relate ates s to the ope operat ration ions s on eac each h pro program gramme me whi which ch he submits for acceptance.
Manager ger assess Whe hen n th the e Project Mana assesses es the cos costt incu incurre rred d by the Employer in repeating a test or inspection after a Defect is found, the Project Mana Manager ger does do es no nott in incl clude ude th the e Contractor ’s ’ s co cost st of ca carr rryi ying ng out the re repe peat at te test st or inspection.
Assessing Asse ssing the amou amount nt due due 50
50.6 50. 6
s t n t e s n o o c p m o c
Defined Defi ned Cos Costt
Payments Payment s of Defi Defined ned Cos Costt made made by by the the Contractor in in a currency other than the currency of this contract are included in the amount due as payments to be made ma de to hi him m in th the e sa same me cu curr rren ency cy.. Su Such ch pa payme yment nts s ar are e co conve nvert rted ed to th the e currency curren cy of this contra contract ct in order to calculate the Fee and any Contractor ’s ’s share using the exchange rates.
52
52.2
The Contractor keeps keeps these records . .
t c a t r a t a n d o c
.
.
5 2 .3
The Contractor ’s ’ s sh shar are e
32
# copyright
nec 2013
accounts of payments of Defined Cost, proof that the payments have been made, communi com municat cations ions abo about ut and ass assess essment ments s of com compens pensati ation on eve events nts for Subcontractors and other records as stated in the Works Information.
The Contractor allows allows the Project Manag Manager er to insp inspec ectt at any ti time me wi with thin in working hours the accounts and records which he is required to keep.
53
5 3 .1
The Project Project Mana Manager ger assesse assesses s the Contractor ’s ’ s sh shar are e of th the e di diff ffer eren ence ce between the total of the Prices and the Price for Work Done to Date. The difference is divided into increments falling within each of the share range ranges s. The limits of a share range are the Price for Work Done to Date divided by the total of the Prices, expressed as a percentage. The Contractor ’s ’s share equals the sum of the products of the increment within each share range and the corresponding Contractor’s share percentage.
53.2 53 .2
If the Price Price for Work Work Done to Date Date is le less ss than than th the e total total of th the e Prices Prices,, the Contractor is is paid his share of the saving. If the Price for Work Done to Date is greater grea ter than the tot total al of the Pri Prices ces,, the Contractor pays pays hi his s sh shar are e of th the e excess.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Main Option Clauses 5 3 .3
The Project Mana Manager ger makes makes a pre prelim limina inary ry ass assess essmen mentt of the Contractor ’s ’s share at Completion of the whole of the works using his forecasts of the final Price for Work Done to Date and the final total of the Prices. This share is included in the amount due following Completion of the whole of the works.
5 3 .4
The Project Mana Manager ger makes makes a fina finall as asse sess ssme ment nt of th the e Contractor ’s ’ s sha share re using the final Price for Work Done to Date and the final total of the Prices. This share is included in the final amount due.
The Activity Schedule 54
54.1
Information Informat ion in the Activity Activity Schedule is not Works Informat Information ion or Site Informati Information. on.
5 4 .2
If the Contractor changes a planned method of working at his discretion so that the activities on the Activity Schedule do not relate to the operations on the Accepted Programme, he submits a revision of the Activity Schedule to the Project Manager for for acceptance.
54.3
A reason reason for not accepting accepting a revision revision of the Activity Activity Schedul Schedule e is that that . .
.
Assessing compensation events
it does not comply with the Accepted Programme, any changed Prices are not reasonably distributed between the activities or the total of the Prices is changed.
63
63.11 63. 11 If the effect effect of a compensat compensation ion event event is to red reduce uce the total total Defined Cost Cost and the event is .
.
a change to the Works Information, other than a change to the Works Information provided by the Employer which which the Contractor proposed proposed and the Project Manager has has accepted or a correction of an assumption stated by the Project Manager for assessing an earlie earlierr compen compensation sation event,
the Prices are reduc reduced. ed. 63.12 63. 12 Assess Assessment ments s for changed changed Pri Prices ces for com compens pensati ation on eve events nts are in the form of changes to the Activity Schedule. 63.14 63. 14 If the Project Manager and and the Contractor agree, agree, rates and lump sums may be used to assess a compensation event. 63.1 63 .15 5 If the the Project Manag Manager er and the Contractor agree, the Contractor assesses a compens com pensati ation on eve event nt usi using ng the Sho Shorte rterr Sch Schedu edule le of Cos Costt Com Compone ponents nts.. The Project Manager may may make his own assessments using the Shorter Schedule of Cost Components. Implementing 65 compensation events 65 65.4 .4
The ch The chan ange ges s to th the e Pr Pric ices es,, th the e Co Comp mple leti tion on Da Date te an and d th the e Ke Keyy Da Date tes s ar are e included includ ed in the notific notification ation implementing implementing a compens compensation ation event.
Payment Paym ent on term terminat ination ion 93
93.4 93. 4
If the there re is a termi terminat nation ion,, the the Project Manager assesses assesses the Contractor ’s ’s share after he has certified termination. His assessment uses, as the Price for Work Done to Date, the total of the Defined Cost which the Contractor has has paid and which he is committed to pay for work done before termination. The assessment uses as the total of the Prices . .
9 3 .6
www.neccontract.com
the lump sum price for each activity which has been completed and a proportion of the lump sum price for each incomplete activity which is the proportion of the work in the activity which has been completed.
The Project Manager ’s ’s assessment of the Contractor ’s ’ s share is added to the amount due to the Contractor on termination if there has been a saving or deducted if there has been an excess.
# copyright
nec 2013 33
s e e r s o u c l a c
s e s u a n i l a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract
Option D: Target contract with bill of quantities
Identified and defined 11 11.2 .2 terms 11
(21) The Bil (21) Billl of Quan Quanti titi ties es is the the bill of quantities as changed in accordance with this contract to accommodate implemented compensation events and for accepted quotations for acceleration. (23) Defined Cost is .
the amount of payments due to Subcontractors for work which is subcontracted without taking account of amounts deducted for . .
s e e r s o u c l a c
. . .
s e s u a n i l a c n m o i t p
retention, payment pay ment to the Employer as a res result ult of the Subcontra Subcontracto ctorr fai failin ling g to meet a Key Date, the correction of Defects after Completion, payments to Others and the supply of equipment, supplies and services included in the charge for overhead cost within the Working Areas in this contract
and .
the cost of components in the Schedule of Cost Components for other work
less Disallowed Cost. (25) Disallowed Cost is cost which the Project Manager decides decides is not justified by the Contractor ’s ’s accounts and records, should not have been paid to a Subcontractor or supplier in accordance with his contract, was incurred only because the Contractor did did not
o s y e s r a u a d l n c o n c o e i s t p o
. .
.
.
.
s t n t e s n o o c p m o c
follow an acc follow accept eptance ance or pro procur cureme ement nt pro proced cedure ure sta stated ted in the Wor Works ks Information or give an early warning which this contract required him to give
and the cost of . .
.
t c a t r a t a n d o c
.
.
correcting Defects after Completion, correcting corre cting Defects caused by the Contractor not complying with a constraint on how he is to Provide the Works stated in the Works Information, Plant Pla nt and Mat Materi erials als not use used d to Pro Provid vide e the Works (after allowing allowing for reasonable wastage) unless resulting from a change to the Works Information, resources not used to Provide the Works (after allowing for reasonable availa ava ilabil bility ity and uti utilis lisati ation) on) or not tak taken en awa awayy fro from m the Wor Working king Are Areas as when the Project Manager requested requested and prepara prep aratio tion n for and con conduc ductt of an adj adjudi udicat cation ion or pro procee ceedin dings gs of the tribunal.
(29) Th (29) The e Pr Pric ice e fo forr Wo Work rk Do Done ne to Da Date te is th the e to tota tall De Define fined d Co Cost st wh whic ich h th the e Project Manager forecasts forecasts will have been paid by the Contractor before before the next assessment date plus the Fee. (31) The Prices are the lump sums and the amounts obtained by multiplying the rates by the quantities for the items in the Bill of Quantities . (33) The Total of the Prices is the total of .
.
the quantity of the work which the Contractor has com comple pleted ted for eac each h item in the Bill of Quantities multiplied by the rate and a pr prop oport ortio ion n of ea each ch lu lump mp su sum m wh whic ich h is th the e pr prop opor orti tion on of th the e wo work rk covered by the item which the Contractor has has completed.
Complet Compl eted ed wo work rk is wo work rk wi witho thout ut De Defe fect cts s wh whic ich h wo woul uld d ei eith ther er de dela layy or be covered by immediately following work.
34
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Main Option Clauses Provid viding ing the Wor Works ks 20 Pro
2 0 .3
The Contractor advises the Project Mana Manager ger on the practical implications of the design of the works and on subcontracting arrangements.
2 0 .4
The Contractor prepares forecasts of the total Defined Cost for the whole of the works in consultation with the Project Manager and submits them to the Projectt Mana Projec Manager ger . Fo Fore reca cast sts s are pr prepa epare red d at th the e in inte terv rval als s st stat ated ed in th the e Contra Con tract ct Dat Data a fro from m the starting starting date until until Com Comple pletio tion n of the whole of the works. An exp explan lanati ation on of the changes changes mad made e sin since ce the previous previous for foreca ecast st is submitted with each forecast.
Subcontra Subco ntracting cting 26
2 6 .4
The Contractor submits the proposed contract data for each subcontract for acceptance accept ance to the Project Manager if if . .
an NEC contract is proposed and the Project Manager instructs instructs the Contractor to to make the submission.
A reason for not accepting the proposed contract data is that its use will not allow the Contractor to to Provide the Works.
s e e r s o u c l a c
Accele Acc elerat ration ion 36
3 6 .3
Whe hen n th the Project Project Manag Manager er accep accepts ts a quota quotati tion on fo forr an ac acce cele lerat ratio ion, n, he changes the Prices, the Completion Date and the Key Dates accordingly and accepts the revised programme.
Tests and inspections 40
40.7 40 .7
Whe hen n th the e Project Mana Manager ger assess assesses es the cos costt incu incurre rred d by the Employer in Manager ger repeating a test or inspection after a Defect is found, the Project Mana does do es not inc inclu lude de th the e Contractor ’s ’ s co cost st of ca carr rryi ying ng ou outt th the e re repea peatt te test st or inspection.
Assessing Asse ssing the amou amount nt due due 50
50.6 50. 6
Defined Defi ned Cos Costt
Payments Payment s of Defi Defined ned Cos Costt made made by by the the Contractor in in a currency other than the currency curre ncy of this contract are included in the amount due as payments to be made ma de to hi him m in th the e sa same me cu curr rren ency. cy. Su Such ch pa payme yments nts ar are e co conv nvert erted ed to th the e ’s currency curre ncy of this contract in order to calculate the Fee and any Contractor ’s share using the exchange rates.
52
5 2 .2
The Contractor keeps keeps these records . . .
accounts of payments of Defined Cost, proof that the payments have been made, communi com municat cations ions abo about ut and ass assess essment ments s of com compens pensati ation on eve events nts for Subcontractors and
other records as stated in the Works Information. The Contractor allows allows the Project Manag Manager er to in insp spec ectt at any ti time me wi with thin in working hours the accounts and records which he is required to keep. .
5 2 .3
The Contractor ’s ’ s sh shar are e
www.neccontract.com
53
5 3 .5
The Project Project Mana Manager ger assesse assesses s the Contractor ’s ’ s sh shar are e of th the e di diff ffer eren ence ce betw be twee een n th the e To Tota tall of th the e Pr Pric ices es an and d th the e Pr Pric ice e fo forr Wo Work rk Do Done ne to Da Date te.. Th The e difference is divided into increments falling within each of the share ranges. The limits of a share range are the Price for Work Done to Date divided by the Total of the Prices, expressed as a percentage. The Contractor ’s ’s share equals the sum of the products of the increment within each share range and the corresponding Contractor’s share percentage.
53.6 53 .6
If the Pric Price e for Work Done Done to Date is less less than the Total Total of the Price Prices, s, the Contractor is is paid his share of the saving. If the Price for Work Done to Date is greate gre aterr tha than n the Total of the Prices, Prices, the Contractor pays pays his share share of th the e excess.
# copyright
nec 2013 35
s e s u a n i l a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract 5 3 .7
The Project Project Manag Manager er makes makes a pre prelim limina inary ry ass assess essmen mentt of the Contractor ’s ’s share at Completion of the whole of the works using his forecasts of the final Price for Work Done to Date and the final Total of the Prices. This share is included in the amount due following Completion of the whole of the works.
5 3 .8
The Project Mana Manager ger makes makes a fina finall as asse sess ssme ment nt of th the e Contractor ’s ’ s sha share re using the final Price for Work Done to Date and the final Total of the Prices. This share is included in the final amount due.
The Bill of Quantities 55
55.1 55. 1
Compensa Com pensation tion event events s
Informatio Informa tion n in the Bill Bill of Qua Quanti ntitie ties s is not Wor Works ks Informat Information ion or Site Inform Informaation.
60
60.4 60. 4 s e e r s o u c l a c
A differen difference ce between between the final final total quanti quantity ty of work done done and the quantity quantity stated for an item in the Bill of Quantities is a compensation event if . .
.
s e s u a n l i a c n m o i t p
If th the e De Define fined d Co Cost st pe perr un unit it of qu quant antit ityy is re reduc duced ed,, th the e af affe fecte cted d ra rate te is reduced. 60.5 60. 5
A differe difference nce betwee between n the final total total quantit quantityy of work done done and the quantit quantityy for an in the Bill offor Quantities which delays Completion ing item of thestated Condition stated a Key Date is a compensation event.or the meet-
o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
the difference does not result from a change to the Works Information, the difference causes the Defined Cost per unit of quantity to change and the rate in the Bill of Quantities for the item multiplied by the final total quantity of work done is more than 0.5% of the total of the Prices at the Contract Date.
6 0 .6
The Project Mana Manager ger correc corrects ts mis mistak takes es in the Bil Billl of Qua Quanti ntitie ties s whi which ch are departures from the rules for item descriptions and for division of the work into in to it items ems in th the e method method of mea measur sureme ement nt or ar are e du due e to am ambi bigu guit itie ies s or incons inc onsist istenc encies ies.. Eac Each h suc such h cor correc rectio tion n is a com compen pensat sation ion eve event nt whi which ch may lead to reduce reduced d Price Prices. s.
60.7 60 .7
In as asse sess ssin ing g a co comp mpen ensa sati tion on ev even entt wh whic ich h re resu sult lts s fr from om a co corr rrec ecti tion on of an incons inc onsist istenc encyy bet betwee ween n the Bil Billl of Qua Quanti ntitie ties s and anot another her doc documen ument, t, the Contractor is is assumed to have taken the Bill of Quantities as correct.
Assessing compensation 63 events 63. 63.11 11 If the effect effect of a compensat compensation ion event event is to red reduce uce the total Defined Defined Cost and
the event is .
t c a t r a t a n d o c
.
a cha change nge to the Works Informa Informatio tion, n, oth other er than a chan change ge to the Wor Works ks Information provided by the Employer which which the Contractor proposed proposed and Project Manager the has accepted has or by the Project Manager for assesa correction of an assumption stated sing an earli earlier er compensation event,
the Prices are reduc reduced. ed. 63.13 Assessments Assessments for changed Prices Prices for compensation compensation events are in the form of changes to the Bill of Quantities. .
For the whole or a part of a compensation event for work not yet done and for which there is an item in the Bill of Quantities, the changes are . . .
.
36
# copyright
nec 2013
a changed rate, a changed quantity or a changed lump sum.
For the whole or a part of a compensation event for work not yet done and for which there is no item in the Bill of Quantities, the change is a new priced item which, unless the Project Manager and the Contractor agree otherwise , is compiled in accordance with the method of measurement.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Main Option Clauses .
For the whole or a part of a compensation event for work already done, the change is a new lump sum item.
If the Project Manager and and the Contractor agree, agree, rates and lump sums may be used to assess a compensation event. 63.1 63 .15 5 If the the Project Manag assesses a Manager er and the Contractor agree, the Contractor assesses compens com pensati ation on eve event nt usi using ng the Sho Shorte rterr Sch Schedu edule le of Cos Costt Com Compone ponents nts.. The Project Manager may make his own assessments using the Shorter Schedule of Cost Components. Implementing 65 65.4 .4 compensation events 65
The ch The chan ange ges s to th the e Pr Pric ices es,, th the e Co Comp mple leti tion on Da Date te an and d th the e Ke Keyy Da Date tes s ar are e included includ ed in the notific notification ation implementing implementing a compens compensation ation event.
Payment Paym ent on termi terminati nation on 93
93.5 93. 5
If the there re is a termi terminat nation, ion, the Project Manager assesses assesses the Contractor ’s ’s share after he has certified termination. His assessment uses, as the Price for Work Done to Date, the total of the Defined Cost which the Contractor has has paid and which he is committed to pay for work done before termination.
9 3 .6
The Project Manager ’s ’s assessment of the Contractor ’s ’ s share is added to the amounts due to the Contractor on termination if there has been a saving or deducted if there has been an excess.
s e e r s o u c l a c
s e s u a n l i a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
www.neccontract.com
# copyright
nec 2013 37
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract
Option E: Cost reimbursable contract
Identified and defined 11 terms 11 11.2 .2
(23)) De (23 Defin fined ed Co Cost st is .
the amount of payments due toof Subcontractors for work tracted without taking account amounts deducted for which is subcon. .
. .
s e e r s o u c l a c
.
retention, payment pay ment to the Employer as a res result ult of the Subcontra Subcontracto ctorr fai failin ling g to meet a Key Date, the correction of Defects after Completion, payments to Others and the supply of equipment, supplies and services included in the charge for overhead cost within the Working Areas in this contract
and .
s e s u a n l i a c n m o i t p
the cost of components in the Schedule of Cost Components for other work
less Disallowed Cost. (25) Disallowed Cost is cost which the Project Manager decides decides . .
o s e y r s a u a d l n c o n c o e i s t p o
.
is not justified by the Contractor ’s ’s accounts and records, should not have been paid to a Subcontractor or supplier in accordance with his contract, was incurred only because the Contractor did did not .
.
follow an acc follow accept eptance ance or pro procur cureme ement nt pro proced cedure ure sta stated ted in the Wor Works ks Information or give an early warning which this contract required him to give
and the cost of .
s t n t e s n o o c p m o c
.
.
.
t c a t r a t a n d o c
correcting Defects after Completion, correcting Defects caused by the Contractor not complying with a constraint on how he is to Provide the Works stated in the Works Information, Plant Pla nt and Mat Materi erials als not use used d to Pro Provid vide e the Works (after allowing allowing for reasonable wastage) unless resulting from a change to the Works Information, resources not used to Provide the Works (after allowing for reasonable availa ava ilabil bility ity and uti utilis lisati ation) on) or not tak taken en awa awayy fro from m the Wor Working king Are Areas as when the Project Manager requested requested and
.
prepara prep aratio n for and con conduc ductt of an adj adjudi udicat cation ion or pro procee ceedin dings gs of the tribunal .tion (29) Th (29) The e Pr Pric ice e fo forr Wo Work rk Do Done ne to Da Date te is th the e to tota tall De Define fined d Co Cost st wh whic ich h th the e Projectt Mana Projec Manager ger forecasts will have been paid by the Contractor before the next assessment date plus the Fee. (32) The Prices are the Defined Cost plus the Fee. Provid Pro viding ing the Wor Works ks 20
38
# copyright
nec 2013
2 0 .3
The Contractor advises the Project Mana Manager ger on the practical implications of the design of the works and on subcontracting arrangements.
2 0 .4
The Contractor prepares forecasts of the total Defined Cost for the whole of the works in consultation with the Project Manager and submits them to the Fore reca cast sts s ar are e pr prep epar ared ed at th the e in inte terv rval als s st stat ated ed in th the e Project Manag Manager er . Fo Contrac Cont ractt Dat Data a fro from m the starting starting date until until Com Comple pletio tion n of the whole of the works. An expl explanat anation ion of the changes changes mad made e sin since ce the previous previous forecast forecast is submitted with each forecast.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Main Option Clauses Subcontra Subco ntracting cting 26
2 6 .4
The Contractor submits the proposed contract data for each subcontract for acceptance accept ance to the Project Manager if if . .
an NEC contract is proposed and the Project Manager instructs instructs the Contractor to to make the submission.
A reason for not accepting the proposed contract data is that its use will not allow the Contractor to to Provide the Works. Accele Acc elerat ration ion 36
3 6 .4
Whe hen n th the Project Project Manag Manager er accep accepts ts a quo quota tati tion on fo forr an ac acce cele lerat ratio ion, n, he changes cha nges the Com Comple pletio tion n Dat Date, e, the Key Dates and the forecast forecast of the total Defined Cost of the whole of the works accordingly and accepts the revised programme.
Tests and inspections 40
40.7 40 .7
Whe hen n the Project Mana Manager ger assess assesses es the cos costt incu incurre rred d by the Employer in repeating a test or inspection after a Defect is found, the Project Mana Manager ger does do es no nott in incl clud ude e th the e Contractor ’s ’ s co cost st of ca carr rryi ying ng ou outt th the e re repea peatt te test st or inspection.
Assessing Asse ssing the amou amount nt due due 50
50.7 50. 7
Payments Paymen ts of of Define Defined d Cost Cost mad made e by the Contractor in in a currency other than the currency curren cy of this contract are included in the amount due as payments to be made ma de to hi him m in th the e sa same me cu curr rren ency. cy. Su Such ch pa payme yments nts ar are e co conve nvert rted ed to th the e curren cur rency cy of thi this s con contrac tractt in or orde derr to ca calc lcul ulat ate e th the e Fe Fee e us usin ing g th the e exchange rates.
Defined Defi ned Cos Costt
The Contractor keeps keeps these records . . .
.
5 2 .3
s e s u a n i l a c n m o i t p o
52
5 2 .2
s e e r s o u c l a c
accounts of payments of Defined Cost, proof that the payments have been made, communi com municat cations ions abo about ut and ass assess essment ments s of com compens pensati ation on eve events nts for Subcontractors and other records as stated in the Works Information.
The Contractor allows allows the Project Manag Manager er to insp inspec ectt at any ti time me wi with thin in working hours the accounts and records which he is required to keep.
Assessing compensation 63 events 63 63.1 .14 4 If th the e Project Manager and and the Contractor agree, agree, rates and lump sums may be
s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
used to assess a compensation event. 63.1 63 .15 5 If the the Project Manag Manager er and the Contractor agree, the Contractor assesses assesses a compens com pensati ation on eve event nt usi using ng his theown Shorte Sho rterr Sch Schedu edule leusing of Cos Cost t Com Compone ponents nts.. The Project Manager may make assessments the Shorter Schedule of Cost Components. Implementing 65 65.3 3 compensation events 65.
www.neccontract.com
The change changes s to the forecast forecast amount amount of the Price Prices, s, the Comple Completio tion n Date and the Key Dates are included in the notification implementing a compensation event.
# copyright
nec 2013 39
t c a t r a t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract
Option F: Management contract
Identified and defined 11 terms 11 11.2 .2
(24)) De (24 Defin fined ed Co Cost st is .
the amount of payments due toof Subcontractors for work tracted without taking account amounts deducted for which is subcon. .
. .
s e e r s o u c l a c
.
retention, payment pay ment to the Employer as a res result ult of the Subcontra Subcontracto ctorr fai failin ling g to meet a Key Date, the correction of Defects after Completion, payments to Others, the supply of equipment, supplies and services included in the charge for overhead cost within the Working Areas in this contract
and .
s e s u a n i l a c n m o i t p o
the prices for work done by the Contractor himself himself
less Disallowed Cost. (26) Disallowed Cost is cost which the Project Manager decides decides . .
.
s e y r s a u a d l n c o n c o e i s t p o
is not justified by the accounts and records provided by the Contractor , should not have been paid to a Subcontractor or supplier in accordance with his contract, was incurred only because the Contractor did did not .
.
.
is a payment to a Subcontractor for .
s t n t e s n o o c p m o c
follow an acc follow accept eptance ance or pro procur cureme ement nt pro proced cedure ure sta stated ted in the Wor Works ks Information or give an early warning which this contract required him to give or
.
work which the Contract Data states that the Contractor will will do himself or the Contractor ’s ’s manageme management. nt.
(29) Th (29) The e Pr Pric ice e fo forr Wo Work rk Do Done ne to Da Date te is th the e to tota tall De Define fined d Co Cost st wh whic ich h th the e Project Mana Manager ger forecasts will have been paid by the Contractor before the next assessment date plus the Fee. (32) The Prices are the Defined Cost plus the Fee. Provid Pro viding ing the Wor Works ks 20
t c a t r a t a n d o c
40
# copyright
nec 2013
2 0 .2
Contractor ’s T he Contractor manages manages theinst s design, the.provision of Site services and the con constr struct uction ion and install allati ation on ’of the works The Contractor subcontrac tr acts ts th the e Contractor ’s ’ s de desi sign gn,, th the e pr prov ovis isio ion n of Si Site te se serv rvic ices es an and d th the e constru cons tructi ction on and ins instal tallat lation ion of the works except except wor work k whi which ch the Con Contra tract ct Data states that he will do himself.
2 0 .3
The Contractor advises the Project Mana Manager ger on the practical implications of the design of the works and on subcontracting arrangements.
2 0 .4
The Contractor prepares forecasts of the total Defined Cost for the whole of the works in consultation with the Project Manager and submits them to the Project Manag Manager er . Fo Fore reca cast sts s ar are e pr prep epar ared ed at th the e in inte terv rval als s st stat ated ed in th the e Contrac Cont ractt Dat Data a fro from m the starting starting date until until Com Comple pletio tion n of the whole of the works. An expl explanat anation ion of the changes changes mad made e sin since ce the previous previous forecast forecast is submitted with each forecast.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Main Option Clauses 20.5 20.5
If wo work rk wh whic ich h the the Contractor is to do himself is affected by a compensation event, the Project Manager and the Contractor agree the change to the price for the work and any change to the Completion Date and Key Dates. If they cannot agree, the Project Manager decides decides the change.
Subcontra Subco ntracting cting 26
2 6 .4
The Contractor submits the proposed contract data for each subcontract for acceptance accept ance to the Project Manager if if . .
an NEC contract is proposed and the Project Manager instructs instructs the Contractor to to make the submission.
A reason for not accepting the proposed contract data is that its use will not allow the Contractor to to Provide the Works. Accele Acc elerat ration ion 36
3 6 .4
Whe hen n th the Project Project Manag Manager er accep accepts ts a quo quota tati tion on fo forr an ac acce cele lerat ratio ion, n, he changes cha nges the Com Comple pletio tion n Dat Date, e, the Key Dates and the forecast forecast of the total Defined Cost of the whole of the works accordingly and accepts the revised programme.
Assessing Asse ssing the amou amount nt due due 50
50.7 50. 7
Defined Defi ned Cos Costt
Payments Paymen ts of of Define Defined d Cost Cost mad made e by the Contractor in in a currency other than the currency curren cy of this contract are included in the amount due as payments to be made ma de to hi him m in th the e sa same me cu curr rren ency. cy. Su Such ch pa payme yments nts ar are e co conve nvert rted ed to th the e orde derr to ca calc lcul ulat ate e th the e Fe Fee e us usin ing g th the e exchange curren cur rency cy of thi this s con contrac tractt in or rates.
52
5 2 .2
The Contractor keeps keeps these records . . .
.
5 2 .3
accounts of payments of Defined Cost, proof that the payments have been made, communi com municat cations ions abo about ut and ass assess essment ments s of com compens pensati ation on eve events nts for Subcontractors and other records as stated in the Works Information.
The Contractor allows allows the Project Manag Manager er to insp inspec ectt at any ti time me wi with thin in working hours the accounts and records which he is required to keep.
Assessing compensation 63 events 63 63.1 .14 4 If th the e Project Manager and and the Contractor agree, agree, rates and lump sums may be
used to assess a compensation event. Implementing 65 compensation events 65. 65.3 3
www.neccontract.com
The change changes s to the forecast forecast amount amount of the Price Prices, s, the Comple Completio tion n Date and the Key Dates are included in the notification implementing a compensation event.
# copyright
nec 2013 41
s e e r s o u c l a c
s e s u a n i l a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t r a t a n d o c
For use on projects associated with UK Shared Business Services Ltd
DISPUTE RESOLUTION
Option W1
Dispute resolution procedure (used unless the United Kingdom Housing Grants, Construction and Regeneration Act 1996 applie applies). s). Disput Dis pute e reso resolut lution ion W1 W1.1 W1. 1
s e e r s o u c l a c
The Adjudicator W1. W1.2 2
A dispute dispute arising arising under or in connecti connection on with this this contract contract is referr referred ed to and decided by the Adjudicator . (1) The Par Partie ties s appoi appoint nt the Adjudicator under the NEC Adjudicator’s Contract current at the starting date. (2) The Adjudicator acts impartially and decides the dispute as an independent adjudicator and not as an arbitrator.
s e s u a n l i a c n m o i t p o
(3) If the Adjudicator is is not identified in the Contract Data or if the Adjudicator resigns or is unable to act, the Parties choose a new adjudicator jointly. If the Parties have not chosen an adjudicator, either Party may ask the Adjudicator nominating body to choose one. The Adjudicator nominating body chooses an adjudicator within four days of the request. The chosen adjudicator becomes the Adjudicator .
s e y r s a u a d l n c o n c o e i s t p o
(4) A replacement Adjudicator has the power to decide a dispute referred to his predecessor but not decided at the time when the predecessor resigned or became unable to act. He deals with an undecided dispute as if it had been referred to him on the date he was appointed. (5) The Adjudicator , his employees and agents are not liable to the Parties for any action or failure to take action in an adjudication unless the action or failure to take action was in bad faith.
s t n t e s n o o c p m o c
The adjudication W1. W1.3 3
(1) Dispu Disputes tes are are notifie notified d and refer referred red to to the Adjudicator in accordance with the Adjudication Table.
t c a t a r t a n d o c
42
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Dispute Resolution ADJUDICATION TABLE Dispute about
Which Party may refer it to the Adjudicator ?
An action of the Project Manager or or
The Contractor
When may it be referred to the Adjudicator ?
the Supervisor
Between two and four weeks Between after the Contractor ’s ’s notification of the the Project dispute to the Employer and and Manager , the notification notification itself being made not more than four weeks after the Contractor becomes aware of the action
The Project Manager or Supervisor not not having taken an action
A quotation for a
The Contractor
The Employer
Between two and four weeks Between after the Contractor ’s ’s notification of the dispute to the Employer and and the Project Manager , the notification notification itself being made not more than four weeks after the Contractor becomes aware that the action was not taken Between Betwee n two and four weeks after the Project Manager ’s ’s notification of the dispute to the Employer and and the Contractor, the notification itself being made not more than four weeks after the quotat quotation ion was treat treated ed as accepted
compensation event which is treated as having been accepted
Any other matt tte er
Either Party
Between two an and d four weeks after notification notification of the dispute to the other Party and the Project Manager
(2) The times for notifying and referring a dispute may be extended by the Project Manager if if the Contractor and and the Project Manager agree agree to the extension sio n bef before ore the not notice ice or ref referr erral al is due due.. The Project Mana Manager ger notifies notifies the extension that has been agreed to the Contractor. If a disputed matter is not notified and referred within the times set out in this contract, neither Party may subsequently refer it to the Adjudicator or or the tribunal. (3) The Party referring the dispute to the Adjudicator includes includes with his referral information to be considered by the Adjudicator . Any more information from a Party to be considered by the Adjudicator is provided within four weeks of the referral. This period may be extended if the Adjudicator and and the Parties agree. under or in co conne nnect ctio ion n wi with th a (4) If a ma (4) matt tter er di disp spute uted d by th the e Contractor under subcontract subcont ract is also a matter disputed under or in connection with this contract and if the subcontract allows, the Contractor may refer the subcontract dispute to the Adjudicator at the same time as the main contract referral. The Adjudicator then decides the disputes together and references to the Parties for the purposes of the dispute are interpreted as including the Subcontractor.
www.neccontract.com
# copyright
nec 2013 43
s e e r s o u c l a c
s e s u a n l i a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t a r t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract (5) The Adjudicator may may .
.
.
.
review revi ew and re revi vise se any act actio ion n or in inac acti tion on of th the e Project Project Mana Manager ger or Supervisor related related to the dispute and alter a quotation which has been treated treate d as having been accepted, take tak e the initiati initiative ve in asc ascert ertain aining ing the facts and the law rel related ated to the dispute, instru ins truct ct a Par Party ty to pro provid vide e fur furthe therr inf inform ormati ation on rel relate ated d to the dis dispute pute within a stated time and instruct a Party to take any other action which he considers necessary to reach his decision and to do so within a stated time.
(6) A communication between a Party and the Adjudicator is is communicated to the other Party at the same time. (7) If the Adjudicator ’s ’ s dec decisi ision on inc include ludes s ass assess essmen mentt of add additi itiona onall cos costt or delay caused to the Contractor , he makes his assessment in the same way as a compens compensation ation event is asses assessed. sed.
s e e r s o u c l a c
(8) Th The e Adjudicator decid decides es the dispute dispute and not notifie ifies s the Parties Parties and the Project Manager of of his decision and his reasons within four weeks of the end of the period for receiving information. This four week period may be extended if the Parties agree.
s e s u a n i l a c n m o i t p o
(9) Unless and until the Adjudicator has notified the Parties of his decision, the Parties, the Project Manager and the Supervisor proceed as if the matter disputed disput ed was not disputed. (10)) The Adjudicator ’s (10 ’ s dec decisi ision on is bin binding ding on the Parties Parties unle unless ss and until revised by the tribunal and is enforceable as a matter of contractual obligation between the Parties and not as an arbitral award. The Adjudicator ’s ’s decision is final and bin bindin ding g if nei neither ther Party Party has notified notified the other within within the times required by this contract that he is dissatisfied with a decision of the Adjudicator and and intends to refer the matter to the tribunal.
s e y r s a u a d l n c o n c o e i s t p o
(11) The Adjudicator may, (11) may, wi with thin in tw two o we week eks s of gi givi ving ng hi his s de deci cisi sion on to th the e Parties, Partie s, corre correct ct any cleri clerical cal mista mistake ke or ambigu ambiguity. ity. W1.4 .4 Review by the tribunal W1
s t n t e s n o o c p m o c
(1) A Pa (1) Part rtyy do does es no nott re refe ferr an anyy di disp sput ute e un unde derr or in co conn nnec ecti tion on wi with th th this is contract to the tribunal unless it has first been referred to the Adjudicator in accordance accord ance with this contra contract. ct. (2) If, after the Adjudicator notifies notifies his decision a Party is dissatisfied, he may notify the other Party that he intends to refer it to the tribunal. A Party may not refe re ferr a di disp sput ute e to the tribunal unless unless thi this s not notifica ificatio tion n is giv given en wit within hin fou fourr weeks of notification of the Adjudicator ’s ’s decision. (3) If the Adjudicator does not notify his decision within the time provided by
t c a a r t t a n d o c
this contract, a Party .may notify thenot other Party that hetointends to refer the dispute to the tribunal A Party may refer a dispute the tribunal unless this notification is given within four weeks of the date by which the Adjudicator should have notifie notified d his decision. (4) The tribunal settles the dispute referred to it. The tribunal has the powers to reconsider any decision of the Adjudicator and and review and revise any action or inaction of the Project Manager or or the Supervisor related to the dispute. A Party is not limited in the tribunal proceedings to the information, evidence or arguments put to the Adjudicator . (5) If the tribunal is arbitration, the arbitration procedure, the place where the arbitration is to be held and the method of choosing the arbitrator are those stated in the Contract Data. (6) A Party does not call the Adjudicator as as a witness in tribunal proceedings.
44
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Dispute Resolution
Option W2
Dispute resolution procedure (used in the United Kingdom when the Housing Grants, Construction and Regeneration Act 1996 applies). Disput Dis pute e resol resoluti ution on W2 W2.1 W2. 1
(1) A dispute dispute arising arising under or in connectio connection n with this contrac contractt is ref referr erred ed to and decided by the Adjudicator . A Party may refer a dispute to the Adjudicator at any time. (2) In this Option, time periods stated in days exclude Christmas Day, Good Friday and bank holidays.
W2.2 2 The Adjudicator W2.
(1) The Par Partie ties s appoi appoint nt the Adjudicator under the NEC Adjudicator’s Contract current at the starting date. (2) The Adjudicator acts impartially and decides the dispute as an independent adjudicator and not as an arbitrator. (3) If the Adjudicator is is not identified in the Contract Data or if the Adjudicator resigns or becomes unable to act . .
the Parties may choose an adjudicator jointly or a Party may ask the Adjudicator nominating body to to choose an adjudicator.
Adjudicator Adjudica tor nomin nominating ating body The request. chooses an the adjudicator within four days of the The chosen adjudic adjudicator ator becomes Adjudicator.
(4) A replacement Adjudicator has the power to decide a dispute referred to his predecessor but not decided at the time when his predecessor resigned or became unable to act. He deals with an undecided dispute as if it had been referred to him on the date he was appointed. (5) The Adjudicator, his employees and agents are not liable to the Parties for any action action or failure failure to take act action ion in an adj adjudic udicati ation on unle unless ss the act action ion or failure to take action was in bad faith. W2.3 .3 The adjudication W2
(1) Befor (1) Before e a Pa Part rtyy refer refers s a di disp sput ute e to the Adjudicator , he gives a notice of adjudication to the other Party with a brief description of the dispute and the decision which he wishes the Adjudicator to to make. If the Adjudicator is is named in the Contract Data, the Party sends a copy of the notice of adjudication to the Adjudicator when when it is issued. Within three days of the receipt of the notice of adjudication, the Adjudicator notifies notifies the Parties . .
that he is able to decide the dispute in accordance with the contract or that he is unable to decide the dispute and has resigned.
If th the e Adjudicator does does not so not notif ifyy wi with thin in th thre ree e da days ys of th the e is issu sue e of th the e notice of adjudication, either Party may act as if he has resigned. (2) Within seven days of a Party giving a notice of adjudication he . .
.
refers the dispute to the Adjudicator , provides the Adjudicator with with the information on which he relies, including any supporting documents and provides a copy of the information and supporting documents he has provided to the Adjudicator to to the other Party.
Any further information from a Party to be considered by the Adjudicator is provided within fourteen days of the referral. This period may be extended if the Adjudicator and and the Parties agree.
www.neccontract.com
# copyright
nec 2013 45
s e e r s o u c l a c
s e s u a n i l a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t a r t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract (3) If a ma matt tter er di disp sput uted ed by th the e Contractor under under or in co conne nnect ctio ion n wi with th a subco sub cont ntra ract ct is al also so a mat matte terr di disp sput uted ed un unde derr or in co conn nnect ectio ion n wi with th th this is contract, the Contractor may, may, with the consent of the Subcontractor, refer the subcontract dispute to the Adjudicator at at the same time as the main contract referral. The Adjudicator then then decides the disputes together and references to the Parties for the purposes of the dispute are interpreted as including the Subcontractor. (4) The Adjudicator may may .
.
.
s e e r s o u c l a c
.
review revi ew and re revi vise se any act actio ion n or in inac acti tion on of th the e Project Project Mana Manager ger or Supervisor related related to the dispute and alter a quotation which has been treated treate d as having been accepted, take tak e the initiati initiative ve in asc ascert ertain aining ing the facts and the law rel related ated to the dispute, instru ins truct ct a Par Party ty to pro provid vide e fur furthe therr inf inform ormati ation on rel relate ated d to the dis dispute pute within a stated time and instruct a Party to take any other action which he considers necessary to reach his decision and to do so within a stated time.
(5) If a Party does not comply with any instruction within the time stated by the Adjudicator , the Adjudicator may continue the adjudication and make his decision based upon the information and evidence he has received.
s e s u a n i l a c n m o i t p o
(6) A communication between a Party and the Adjudicator is is communicated to the other Party at the same time. (7) If the Adjudicator’s decision decision includes assessment assessment of addit additional ional cost or delay caused to the Contractor, he makes his assessment in the same way as a compensation event is assessed. If the Adjudicator ’s ’s decision changes an amount notified as due, payment of the sum decided by the Adjudicator is is due not later than seven days from the date of the decision or the final date for payment of the notified amount, whichever is the later.
s e y r s a u a d l n c o n c o e i s t p o
(8) Th (8) The e Adjudicator decid decides es th the e di disp spute ute an and d no noti tifie fies s th the e Pa Part rtie ies s and th the e Projectt Mana Projec Manager ger of of his decision and his reasons within twenty-eight days of the dispute being referred to him. This period may be extended by up to fourteen days with the consent of the referring Party or by any other period agreed by the Parties. Parties. The Adjudicator may in his de deci cisi sion on al allo loca cate te hi his s fe fees es and expenses between the Parties.
s t n t e s n o o c p m o c
(9) Unless and until the Adjudicator has notified the Parties of his decision, the Parties, the Project Manager and the Supervisor proceed as if the matter disputed disput ed was not disputed. (10) If the Adjudicator does does not make his decision and notify it to the Parties within the time provided by this contract, the Parties and the Adjudicator may agree to extend the period for making his decision. If they do not agree to an extension, either Party may act as if the Adjudicator has has resigned. (11)) The Adjudicator ’s (11 ’ s dec decisi ision on is bind binding ing on the Parties Parties unl unless ess and unti untill revised by the tribunal and is enforceable as a matter of contractual obligation between the Parties and not as an arbitral award. The Adjudicator ’s ’s decision is fina finall and binding binding if nei neithe therr Par Party ty has notified notified the other within within the times required by this contract that he is dissatisfied with a matter decided by the Adjudicator and and intends to refer the matter to the tribunal.
t c a t a r t a n d o c
(12) The Adjudicator may, may, within five days of giving his decision to the Parties, correct the decision to remove a clerical or typographical error arising by accident or omiss omission. ion. Review by the tribunal W2 W2.4 .4
(1) A Pa (1) Part rtyy do does es no nott re refe ferr an anyy di disp sput ute e un unde derr or in co conn nnec ecti tion on wi with th th this is contract to the tribunal unless it has first been decided by the Adjudicator in accordance with this contract. (2) If, after the Adjudicator notifies his decision a Party is dissatisfied, that Party may notify the other Party of the matter which he disputes and state
46
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Dispute Resolution that he intends to refer it to the tribunal. The dispute may not be referred to the tribunal unless this notification is given within four weeks of the notification of the Adjudicator’s decision. (3) The tribunal settles the dispute referred to it. The tribunal has the powers to rec recons onside iderr any dec decisi ision on of the Adjudicator and to rev review iew and rev revise ise any action act ion or inac inactio tion n of the Project Mana Manager ger or th the e Supervisor relate related d to the dispute. A Party is not limited in tribunal proceedings proceedings to the information or evidence put to the Adjudicator . (4) If the tribunal is arbitration, the arbitration procedure, the place where the arbitration is to be held and the method of choosing the arbitrator are those stated in the Contract Data. (5) A Party does not call the Adjudicator as as a witness in tribunal proceedings. s e e r s o u c l a c
s e s u a n l i a c n m o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a t a r t a n d o c
www.neccontract.com
# copyright
nec 2013 47
For use on projects associated with UK Shared Business Services Ltd
SECONDARY OPTION CLAUSES
Option X1: Price adjustment for inflation (used only with Options A, B, C and D)
Defin De fined ed te term rms s X1
X1.1 X1. 1
(b) Th The e La Late test st In Inde dexx (L (L)) is th the e la late test st av avai aila labl ble e in inde dexx be befo fore re th the e da date te of assessment of an amount due.
s e e r s o u c l a c
(c) The Price Adjustment Factor is the total of the products of each of the proportions stated in the Contract Data multiplied by (L – B)/B for the index linked to it. Price Adjustment Factor X1.2
s e s u a n l i a c m n o i t p o
If an index is changed changed after it has has been been used used in calcul calculating ating a Price Price Adjust Adjustment ment Facto Fac tor, r, th the e ca calc lcul ulat atio ion n is re repe peat ated ed an and d a co corr rrec ecti tion on in incl clud uded ed in th the e ne next xt assessment of the amount due. The Price Adjustment Factor calculated at the Completion Date for the whole of the works is used for calculating price adjustment after this date.
Compensation events X1.3
s e y s r u a a d l n c o n c o e i s t p o
s t n t e s n o o c p m o c
(a) The Base Base Date Date Index Index (B) is the the latest latest avail availabl able e index index before before the base date.
The Defined Cost for compens compensation ation events is asses assessed sed using the .
.
Price adjustment Options X1. X1.4 4 A and B
Each amount amount due due include includes s an amount amount for price price adjust adjustment ment which which is the the sum of .
.
.
t c a t a r t a n d o c
Price adjustment Options X1 X1.5 .5 C and D
.
# copyright
nec 2013
the change in the Price for Work Done to Date since the last assessment of the amount due multiplied by the Price Adjustment Factor for the date of the current assessment, the amount for price adjustmen adjustmentt inc includ luded ed in the previous previous amou amount nt due and correcting amounts, not included elsewhere, which arise from changes to indices indice s used for asses assessing sing previous amounts for price adjustment. adjustment.
Each time the amount Each amount due is assess assessed ed,, an amount amount for price price ad adju just stme ment nt is added to the total of the Prices which is the sum of .
48
Defined Cost current at the time of assessing the compensation event adjust adj usted ed to base base dat date e by di divi vidi ding ng by one pl plus us th the e Pr Pric ice e Ad Adju just stmen mentt Factor for the last assessment of the amount due and Defin De fined ed Co Cost st at base base dat date e levels levels for amou amounts nts cal calcul culate ated d fro from m rat rates es stated in the Contract Data for employees and Equipment.
the change in the Price for Work Done to Date since the last assessment of the amount due multiplied by (PAF/(1 þ PAF)) where PAF is the Price Adjustment Factor for the date of the current assessment and correcting amounts, not included elsewhere, which arise from changes to indices indice s used for asses assessing sing previous amounts for price adjustment. adjustment.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Secondary Option Clauses
Option X2: Changes in the law Change Cha nges s in th the e law law X2
X2.1 X2. 1
A change change in the the law of the the countr countryy in which which the Site Site is is located located is a compe compensa nsa-tion event if it occurs after the Contract Date. The Project Manager may may notify the Contractor of a compensation event for a change in the law and instruct him to submit quotations. If the effect of a compensation event which is a change in the law is to reduce the total Defined Cost, the Prices are reduced.
Option X3: Multiple currencies (used only with Options A and B)
s e e r s o u c l a c
Multip Mul tiple le curr currenc encies ies X3
X3.1
X3.2 X3 .2
The Contractor is is paid in currencies other than the currency of this contract for exchange rates are the items or act activi ivitie ties s lis listed ted in the Con Contra tract ct Dat Data. a. The exchange used to convert from the currency of this contract to other currencies. Pay ayme ment nts s to the the Contractor in cur currenc rencies ies oth other er tha than n the curren currency cy of thi this s contract do not exceed the maximum amounts stated in the Contract Data. Any excess is paid in the currency of this contract .
s e y s r u a a d l n c o n c o e i s t p o
Option X4: Parent company guarantee Parent company guarantee
X4
X4.1 X4 .1
If a par parent ent co compa mpany ny ow owns ns th the e Contractor , the Contractor gives gives to the Employer a guarantee by the parent company of the Contractor ’s ’ s per perfor formanc mance e in the form set out in the Works Information. If the guarantee was not given by the Contract Date, it is given to the Employer within four weeks of the Contract Date.
Sectional Secti onal Compl Completion etion X5
In the hes se conditions of contract, unless stated as the whole of the works, each reference refer ence and clause relevant to . . .
the works, Completion Complet ion and Completion Date
applies, as the case may be, to either the whole of the works or any section of the works.
www.neccontract.com
s t n t e s n o o c p m o c
t c a a r t t a n d o c
Option X5: Sectional Completion X5.1 X5 .1
s e s u a n i l a c m n o i t p o
# copyright
nec 2013 49
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract
Option X6: Bonus for early Completion Bonus Bon us for for early early Compl Completi etion on X6
X6.1
The Contractor is paid a bonus calculated at the rate stated in the Contract Data for each day from the earlier of .
Completion Complet ion and
.
the date on which the Employer takes takes over the works until the Complet Completion ion Date.
s e e r s o u c l a c
Option X7: Delay damages Delay Del ay dama damages ges X7
X7.1 s e s u a n i l a c m n o i t p o
. .
s e y s r u a a d l n c o n c o e i s t p o
s t n t e s n o o c p m o c
The Contractor pays delay damages at the rate stated in the Contract Data from the Completion Date for each day until the earlier of Completion and Completion the date on which the Employer takes takes over the works.
X7.2 X7. 2
If the Comple Completio tion n Date is change changed d to a later date date after after delay delay damages damages have have been paid, the Employer repays repays the overpayment of damages with interest. Interest is assessed from the date of payment to the date of repayment and the date of repayment is an assessment date.
X7.3
If the Employer takes over a part of the works before Completion, the delay dama da mage ges s ar are e re redu duce ced d fr from om th the e dat date e on wh whic ich h th the e par partt is ta take ken n ov over er.. Th The e Project Manager assesses the benefit to the Employer of taking over the part of the works as a proportion of the benefit to the Employer of taking over the whole of the works not previously taken over. The delay damages are reduced in this proportion.
Option X12: Partnering Identified and defined X12 terms X12.1 (1) The Partners Partners are those those named in the Schedule Schedule of Partners. Partners. The Client is a
t c a a r t t a n d o c
Partner.
(2) An Own Contract is a contract between two Partners which includes this Option. (3) The Core Gro Group up com compri prises ses the Par Partne tners rs lis listed ted in the Schedule Schedule of Cor Core e Group Members. (4) Par Partne tnerin ring g Inf Inform ormati ation on is inf informa ormatio tion n whi which ch spe specifi cifies es how the Par Partner tners s work together and is either in the documents which the Contract Data states it is in or in an instruction given in accordance with this contract. (5) A Key Performan Performance ce Indicator Indicator is an asp aspect ect of per perfor formanc mance e for which a target is stated in the Schedule of Partners.
50
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Secondary Option Clauses Partner works works with with the other other Partners Partners to achieve achieve the Client’s objective Actions X12.2 (1) Each Partner stated in the Contract Data and the objectives of every other Partner stated in the Schedule of Partn Partners. ers. (2) Each Par Partne tnerr nomi nominat nates es a rep repres resent entati ative ve to act for it in dea dealing lings s wit with h other Partners. (3) The Core Group acts and takes decisions on behalf of the Partners on those matters stated in the Partn Partnering ering Information. Information. (4) Th (4) The e Pa Part rtne ners rs se sele lect ct th the e mem membe bers rs of th the e Co Core re Gr Grou oup. p. Th The e Co Core re Gr Group oup decides how they will work and decides the dates when each member joins and leaves the Core Group. The Client’s representative leads the Core Group unless stated otherwise in the Partnering Information. (5) Th (5) The e Co Core re Gr Grou oup p ke keep eps s th the e Sc Sche hedu dule le of Co Core re Gr Grou oup p Me Membe mbers rs and th the e Schedule of Partners up to date and issues copies of them to the Partners each time either is revised. (6) This Option does not create a legal partnership between Partners who are not one of the Parties in this contract.
s e e r s o u c l a c
Working together X12.3 (1) The Partners Partners work together together as stated stated in the Partnerin Partnering g Information Information and in
a spirit of mutual trust and co-operation. (2) A Partner may ask another Partner to provide information which he needs to carry out the work in his Own Contract and the other Partner provides it. (3) Ea (3) Each ch Pa Part rtne nerr giv gives es an ea earl rlyy wa warni rning ng to th the e ot othe herr Pa Part rtne ners rs wh when en he becomes aware of any matter that could affect the achievement of another Partner’s objectives stated in the Schedule of Partners. (4) The Partners use common information systems as set out in the Partnering Information. (5) A Partner implements a decision of the Core Group by issuing instructions in accor accordance dance with its Own Contra Contracts. cts. (6) The Cor Core e Gro Group up may give an ins instru tructi ction on to the Par Partne tners rs to cha change nge the Partnering Information. Each such change to the Partnering Information is a compensation event which may lead to reduced Prices. (7) The Core Group prepares and maintains a timetable showing the proposed timing of the contributions of the Partners. The Core Group issues a copy of the timetable to the Partners each time it is revised. The Contractor changes his programme if it is necessary to do so in order to comply with the revised timeta tim etable. ble. Each suc such h cha change nge is a comp compens ensati ation on eve event nt whi which ch may lea lead d to reduced Prices. (8) A Partner gives advice, information and opinion to the Core Group and to other Partners when asked to do so by the Core Group. This advice, information and opinion relates to work that another Partner is to carry out under its Own Con Contra tract ct and is give given n ful fully, ly, ope openly nly and obj object ective ively. ly. The Par Partne tners rs sho show w contingency and risk allowances in information about costs, prices and timing for future work. (9) A Partner notifies the Core Group before subcontracting any work. Incentives X12 X12.4 .4 (1) A Partner Partner is paid the amount amount stated stated in the Schedul Schedule e of Par Partner tners s if the
target stated for a Key Performance Indicator is improved upon or achieved. Payment of the amount is due when the target has been improved upon or achi ac hiev eved ed an and d is ma made de as pa part rt of th the e am amou ount nt du due e in th the e Pa Part rtne ner’ r’s s Ow Own n Contract. (2) The Client may add a Key Performance Indicator and associated payment to the Schedule of Partners but may not delete or reduce a payment stated in the Schedule of Partn Partners. ers.
www.neccontract.com
# copyright
nec 2013 51
s e s u a n i l a c m n o i t p o s e y s r u a a d l c n o n c o e i s t p o
s t n t e s n o o c p m o c
t c a t a r t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract
Option X13: Performance bond Perfor Per formanc mance e bon bond d X13
X13. X1 3.1 1 The Contractor gives gives the Employer a a performance bond, provided by a bank or insurer which the Project Manager has accepted, for the amount stated in the Contract Data and in the form set out in the Works Information. A reason for not accepting the bank or insurer is that its commercial position is not strong enough to carry the bond. If the bond was not given by the Contract Date, it is given to the Employer within within four weeks of the Contract Date.
s e e r s o u c l a c
Option X14: Advanced payment to the Contractor Advance Adv anced d paym payment ent X14
X14. X1 4.1 1 The Employer makes an advanced payment to the Contractor of the amount stated in the Contract Data.
s e s u a n l i a c m n o i t p o
X14.2 The advanced advanced payment is made either either within four weeks weeks of the Contract Contract Date or, if an advanced payment bond is required, within four weeks of the later of .
the Contract Date and
.
Employer
the date when the receives the advance advanced d paymen paymentt bond. The advanced payment bond is issued by a bank or insurer which the Project Manager has accepted accepted.. A rea reason son for not accepting accepting the proposed proposed bank or insurer is that its commercial position is not strong enough to carry the bond. The bond is for the amount of the advanced payment which the Contractor has not repaid and is in the form set out in the Works Information. Delay in making the advanced payment is a compensation event.
s e y s r u a a d l n c o n c o e i s t p o
X14.3 X14 .3 The advanc advanced ed payment payment is repaid repaid to the Employer by the Contractor in instalments of the amount stated in the Contract Data. An instalment is included in each amount due assessed after the period stated in the Contract Data has passed until the advanced payment has been repaid.
s t n t e s n o o c p m o c
Option X15: Limitation of the Contractor ’s ’s liability for his design to t
reasonable skill and care
c t a a r t a n d o c
The Contractor ’s ’ s de desi sign gn X1 X15 5
X15. X1 5.1 1 The Contractor is not liable for Defects in the works due to his design so far as he proves that he used reasonable skill and care to ensure that his design complied complie d with the Works Information. Information. X15. X1 5.2 2 If th the e Contractor corrects corrects a Defect for which he is not liable under this contract it is a compensation event.
52
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Secondary Option Clauses
Option X16: Retention (not used with Option F) Retenti Ret ention on X16
X16.1 X16 .1 After After the Price for Work Work Done to Dat Date e has rea reache ched d the retention free amount , an amount is retained in each amount due. Until the earlier of .
Completion of the whole of the works and
.
the date on which the Employer takes takes over the whole of the works the amount retained is the retention percentage applied to the excess of the Price for Work Done to Date above the retention free amount. X16.2 The amount amount retain retained ed is halved . .
in the assessment made at Completion of the whole of the works or in the next assessment after the Employer has taken over the whole of the works if this is before Completion of the whole of the works.
The amount retained remains at this amount until the Defects Certificate is issued iss ued.. No amo amount unt is ret retaine ained d in the ass assess essmen ments ts made after the Defects Defects Certificate has been issued.
s e s u a n l i a c m n o i t p o
Option X17: Low performance damages Low performance damages
X17
X17.1 X17 .1 If a Def Defect ect included included in the Defects Defects Certificat Certificate e sho shows ws low performan performance ce with respec res pectt to a per perfor formanc mance e lev level el sta stated ted in the Contract Contract Data, the Contractor pays the amount of low performance damages stated in the Contract Data.
Option X18: Limitation of liability Limitation Limitat ion of liabil liability ity X18
X18. X1 8.1 1 The The Contractor ’s ’s liability to the Employer for for the Employer ’s ’s indirect or consequential loss is limited to the amount stated in the Contract Data. X18.2 X18 .2 For any one event event,, the liabili liability ty of the Contractor to to the Employer for for loss of or damage dam age to the Employer ’s ’ s pr prope opert rtyy is li limi mite ted d to th the e amount amount stated stated in th the e Contract Data. X18. X1 8.3 3 The The Contractor ’s ’s liability to the Employer for Defects due to his design which are not listed on the Defects Certificate is limited to the amount stated in the Contract Data. X18. X1 8.4 4 The The Contractor ’s ’s total liability to the Employer for for all matters arising under or in connection with this contract, other than the excluded matters, is limited to the amount stated in the Contract Data and applies in contract, tort or delict and otherwise to the extent allowed under the law of the contract. The excluded matters are amounts payable by the Contractor as as stated in this contract for . . . .
loss of or damage to the Employer ’s ’s property, delay damages if Option X7 applies, low performance damages if Option X17 applies and Contractor ’s ’s share if Option C or Option D applies.
X18. X1 8.5 5 The The Contractor is is not liable to the Employer for for a matter unless it is notified to the Contractor before before the end of liability date .
www.neccontract.com
s e e r s o u c l a c
# copyright
nec 2013 53
s e y s r u a a d l n c o n c o e i s t p o
s t n t e s n o o c p m o c
t c t a a r t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract
Option X20: Key Performance Indicators (not used with Option X12) Incentives X20.1 A Key Performance Performance Indicat Indicator or is an aspect aspect of performanc performance e by the Contractor for for
which a target is stated in the Incentive Schedule. The Incentive Schedule is the incentive schedule unless later changed in accordance with this contract. X20. X2 0.2 2 Fr From om the starting starting date until until the Def Defect ects s Cer Certifi tificat cate e has bee been n iss issued ued,, the Contractor reports reports to the Project Manager his his performance against each of the
Key Per Perfor formanc mance e Ind Indica icator tors. s. Rep Report orts s are pro provid vided ed at the int interv ervals als sta stated ted in the Contract Data and include the forecast final measurement against each indicator. X20. X2 0.3 3 If the the Contractor’s forecast forecast fina finall meas measure urement ment aga agains instt a Key Per Perfor formanc mance e Indica Ind icator tor will not ach achiev ieve e the tar target get sta stated ted in the Inc Incent entive ive Sch Schedu edule, le, he submits to the Project Manager his proposals for improving performance.
s e e r s o u c l a c
X20. X2 0.4 4 The The Contractor is paid the amount stated stated in the Incentiv Incentive e Sch Schedu edule le if the target stated for a Key Performance Indicator is improved upon or achieved. Payment of the amount is due when the target has been improved upon or achieved.
s e s u a n i l a c m n o i t p o
X20. X2 0.5 5 The The Employer may add a Key Performance Indicator and associated payment to the Incentive Schedule but may not delete or reduce a payment stated in the Incentive Schedule.
s e y s r u a a d l n c o n c o e i s t p o
s t n t e s n o o c p m o c
t c a a r t t a n d o c
54
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Secondary Option Clauses
OPTION Y
Option Y(UK)1: Project Bank Account Definit Defi nition ions s Y(UK Y(UK)1 )1
Y1.1 Y1 .1
(1) Th (1) The e Aut Author horis isat atio ion n is a do docu cumen mentt au auth thor oris isin ing g th the e project project bank to mak make e payments to the Contractor and and Named Suppliers. (2) Nam Named ed Supp Supplie liers rs are named supp suppliers liers and other Sup Suppli pliers ers who hav have e signed the Joining Deed. (3) Project Bank Account is the account used to receive payments from the Employer and and th the e Contractor and and mak make e pay payme ments nts to th the e Contractor and Named Suppliers. (4) A Supplier is a person or organisation who has a contract to . . .
construct or install part of the works, provide a service necessary to Provide the Works or supply Plant and Materials for the works.
(5) Trust Deed is an agreement in the form set out in the contract which contains provisions provisions for admini administeri stering ng the Proje Project ct Bank Account. (6) Joining Deed is an agreement in the form set out in the contract under which the Supplier joins the Trust Deed. Project Bank Account Y1.2
project bank The Contractor establi establishe shes s the Pro Projec jectt Ban Bank k Acc Account ount wit with h the project within three weeks of the Contract Date.
Y1.3 Y1. 3
Unless stat Unless stated ed other otherwis wise e in the the Contra Contract ct Data, Data, the the Contractor pays pays any charges made and is paid any interest paid by the project bank . The charges and interest by the project bank are are not included in Defined Cost.
Y1.4
The Contractor submits to the Project Manager for acceptance details of the banking arrangements for the Project Bank Account. A reason for not accepting the banking arrangements is that they do not provide for payments to be made in accordance with this contract. The Contractor provides to the Project Manager copies of communications with the project bank in connection with the Project Bank Account.
Named Suppliers Y1.5
The Contractor includes in his contracts with Named Suppliers the arrangements in this contract for the operation of the Project Bank Account and Trust Deed. The Contractor notifies notifies the Named ofamounts the details ofunder the Project Bank Account and the arrangements for Suppliers payment of due their contracts.
Y1.6
The Contractor subm submit its s pr propo oposa sals ls fo forr ad addi ding ng a Su Suppl pplie ierr to th the e Nam Named ed Suppliers to the Project Manager for for acceptance. A reason for not accepting is that the addition of the Supplier does not comply with the Works Information. The Employer, the Contractor and the Supp Supplie lierr sig sign n the Joining Joining Dee Deed d aft after er acceptance.
Payments Y1 Y1.7 .7
On or b bef efor ore e each each asses assessm smen entt date, date, the the Contractor submits submits to the Project Manager an ap appl plic icat ation ion fo forr pay payme ment nt,, and sh show ows s in th the e app appli lica cati tion on th the e amounts due to Named Suppliers in accordance with their contracts.
Y1.8 Y1. 8
Within the Within the time set set out in in the banki banking ng arrange arrangemen ments ts to allow allow the the project bank to make payment to the Contractor and Named Suppliers in accordance with the contract, .
www.neccontract.com
the Employer makes makes payment to the Project Bank Account of the amount which is due to be paid under the contract and
# copyright
nec 2013 55
s e e r s o u c l a c
s e s u a n i l a c m n o i t p o s e y s r u a a d l n c o n c o e i s t p o
s t n t e s n o o c p m o c
t c a a r t t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract .
Y1.9
the Contractor make makes s pa payme yment nt to th the e Pr Proj ojec ectt Ba Bank nk Ac Acco count unt of any amount amou nt whi which ch the Employer has not notifie ified d the Contractor he int intend ends s to withhold from the certified amount and which is required to make payment to Named Suppliers.
The Contractor prepa prepare res s th the e Au Auth thor oris isat atio ion, n, se sett ttin ing g ou outt th the e su sums ms du due e to Named Suppliers as assessed by the Contractor and and to the Contractor for for the balance of the payment due under the contract. After signing the Authorisation, the Contractor submits it to the Project Manager no later than four days before the final date for payment. The Employer signs the Authorisation and submits it to the project bank no no later than one day before the final date for payment.
Y1.1 Y1 .10 0 The The Contractor and Named Suppliers receive payment from the Project Bank Account of the sums set out in the Authorisation as soon as practicable after the Project Bank Account receives receives payment. s e e r s o u c l a c
Y1.1 Y1 .11 1 A pa paym yment ent which which is due from from th the e Contractor to th the e Employer is not made through the Proje Project ct Bank Accoun Account. t. Effect of payment Y1.12 Payments Payments made from the the Project Bank Bank Account Account are treated treated as payments payments from the Employer to the Contractor in accordance with this contract or from the Contractor or or Subcontractor to to Named Suppliers in accordance with their contracts as applicable. A delay in payment due to a failure of the Contractor to
s e s u a n i l a c m n o i t p o
comply with the requirements of this clause is not treated as late payment under this contract. Trust Deed Y1. Employer, Contractor Y1.13 13 Th The the an d named suppliers sign the Trust Deed before thee first assessment asses sment date. and
s e y s r u a a d l c n o n c o e i s t p o
Termination Y1 Y1.1 .14 4 If the Project Manager issues a termination certificate, no further payment is
made into the Project Bank Account.
s t n t e s n o o c p m o c
t c a a r t t a n d o c
56
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Secondary Option Clauses Trust Deed This ag This agre reem ement ent is mad made e be betw twee een n th the e Employer, the Contractor and and th the e Nam Named ed Suppliers. Terms Term s in th this is de deed ed ha have ve th the e me mean aning ings s gi give ven n to th them em in th the e cont contrac ractt be betw twee een n . . . . . . . . . . . . . . . . . . . . . and . . . . . . . . . . . . . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . (t ( the works). Background
The Employer and and the Contractor have have entered into a contract for the works. The Named Suppliers have entered into contracts with the Contractor or or a Subcontractor in connection with the works. The Contractor has has established a Project Bank Account to make provision for payment to the Contractor and and the Named Suppliers. s e e r s o u c l a c
Agreement
The parties to this deed agree that .
.
sums due to the Contractor and Named Suppliers and set out in the Authorisation are held in trust in the Project Bank Account by the Contractor for distribution to the Contractor and and Named Suppliers in accordance with the banking arrangements applicable applica ble to the Project Bank Account Account,, further Named Suppliers may be added as parties to this deed with the agreement of the Employer and Contractor. The agreement of the Employer and Contractor is treated as agreement by the Named Suppliers who are parties to this deed,
. .
thisbenefits deed is subject to the law of the for the works, the under this deed may not contract be assigned.
s e s u a n l i a c m n o i t p o s e y s r u a a d l n c o n c o e i s t p o
Executed as a deed on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . by
. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . (Employer ) . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . (Contractor )
s t n t e s n o o c p m o c
............................................ ............................................ ............................................
t
............................................
c a a r t t a n d o c
(Named Suppliers)
www.neccontract.com
# copyright
nec 2013 57
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Joining Deed This agreement is made between the Employer, the Contractor an and . . . . . . . . . . . . . . (the Additional Supplier). Terms Term s in th this is de deed ed ha have ve th the e me mean anin ings gs gi give ven n to th them em in th the e cont contra ract ct be betw twee een n . . . . . . . . . . . . . . . . . . . . . and . . . . . . . . . . . . . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . (t ( the works). Background
The Employer and and the Contractor have have entered into a contract for the works. The Named Suppliers have entered into contracts with the Contractor or or a Subcontractor in connection with the works. The Contractor has has established a Project Bank Account to make provision for payment to the Contractor and and the Named Suppliers. s e e r s o u c l a c
The Employer, the Contractor and the Named Suppliers have entered into a deed as set out in Annex 1 (the Trust Deed), and have agreed that the Additional Supplier may join that deed. Agreement
The Parties to this deed agree that
s e s u a n l i a c m n o i t p o
.
. .
the Additional Supplier becomes a party to the Trust Deed from the date set out below, this deed is subject to the law of the contract for the works, the benefits under this deed may not be assigned.
Executed as a deed on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s e y s r u a a d l n c o n c o e i s t p o
by
. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . (Employer ) . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . (Contractor ) ............................................ (Additional Supplier)
s t n t e s n o o c p m o c
t c t a a r t a n d o c
58
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Secondary Option Clauses
Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996 Definit Defi nition ions s Y(UK Y(UK)2 )2
Y2.1 Y2. 1
(1) The Act Act is the Housing Housing Grants Grants,, Constru Constructi ction on and Regener Regenerati ation on Act 1996 1996 as amended by the Local Democracy, Economic Development and Construction Act 2009. (2) A period of time stated in days is a period calculated in accordance with Section 116 of the Act.
Dates for payment Y2. Y2.2 2
The date date on which which a payment payment becom becomes es due is seve seven n days after after the the assessassessment date. The final date for payment is fourteen days or a different period for payment if stated in the Contract Data after the date on which payment becomes due. The Project Mana Manager ger ’s ’ s certificate is the notice of payment to the Contractor specifying the amount due at the payment due date (the notified sum) and stating the basis on which the amount was calculated.
Notice of intention to pay less
Y2.3 Y2. 3
If either either Party Party inten intends ds to pay less less than than the notified notified sum, sum, he notifies notifies the the other other Party not later than seven days (the prescribed period) before the final date for payment by stating the amount considered to be due and the basis on which that sum is calculated. A Party does not withhold payment of an amount due under this contract unless he has notified his intention to pay less than the notified sum as required by this contract.
Suspension of performance
Y2.4
If the Contractor exercises exercises his right under the Act to suspend performance, it is a compensation event.
Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999 Third party rights Y(UK)3
Y3.1 Y3. 1
A person person or organis organisati ation on who is not one one of the Parti Parties es may enfor enforce ce a term of this contract under the Contracts (Rights of Third Parties) Act 1999 only if the term and the person or organisation are stated in the Contract Data.
s e e r s o u c l a c
s e s u a n i l a c m n o i t p o s e y s r u a a d l n c o n c o e i s t p o
s t n t e s n o o c p m o c
t c t a a r t a n d o c
Additional condit conditions ions of contra contract ct Option Z: Additional
Additional conditions of contract
www.neccontract.com
Z1
Z1.1
The additional additional cond conditions itions of contra contract ct stated in the Contract Data are part of this contract.
# copyright
nec 2013 59
For use on projects associated with UK Shared Business Services Ltd
SCHEDULE OF COST COMPONENTS
This schedule is part of the conditions of contract only when Option C, D or E is use used. d. In thi this s sch schedu edule le the Contractor means means the Contractor and not his Subcontractors. An amount is included only in one cost component and only if it is incurred in order to Provide the Works. Peop Pe ople le 1
The follo following wing compone components nts of the cost of .
.
s e e r s o u c l a c
people who are directly employed by the Contractor and whose normal place of working is within the Working Areas and people who are directly employed by the Contractor and whose normal place of working is not within the Working Areas but who are working in the Working Areas.
11
Wages,, sa Wages sala lari ries es an and d am amou ounts nts pai paid d by th the e Contractor for for people paid according to the time worked while they are within the Working Areas.
12
Paym Pa ymen ents ts to pe peop ople le fo forr
s e s u a n i l a c m n o i t p o
(a) (b) (c) (d) (e) (f) 13
s e y r s a u a d l n c o n c o e i s t p o
bonuses and and incentives incentives overtime overti me working worki ng in special circumsta circumstances nces speciall allowances specia allowances absence absenc e due to sickness sickness and holidays holidays severance sever ance related related to work work on this contract. contract.
Payme Pa yment nts s ma made de in re rela lati tion on to pe peopl ople e fo forr (a) tra travel vel (b) subsis subsistence tence and lodging lodging (c) reloc relocation ation (d) medical examina examinations tions (e) passpor passports ts and visas visas (f) tra travel vel ins insura urance nce (g) items (a) (a) to (f) for dependants dependants (h) protec protective tive clothing clothing (i) meeting the requireme requirements nts of the law (j) pension pensions s and and life life assuranc assurance e (k) dea death th benefit benefit (l) occupat occupational ional accide accident nt benefits (m) medical aid (n) a vehicl vehicle e (o) safety traini training. ng.
s t n t e s n o o c p m o c
t c a a r t t a n d o c
14
The fol follow lowing ing com compone ponents nts of the the cost cost of peop people le who who are are not not dire directl ctlyy employ employed ed by the Contractor but are paid for by him according to the time worked while they are within the Working Areas. Amounts paid by the Contractor .
Equip Eq uipmen mentt
2
21
The follo following wing compo componen nents ts of the cost cost of Equipm Equipment ent which which is used used within within the the Working Areas (including the cost of accommodation but excluding Equipment cost covered by the percentage for Working Areas overheads). Payme Pa yment nts s for for th the e hire hire or or ren rentt of of Equi Equipme pment nt not not ow owned ned by . . .
the Contractor , his parent company or by a company with the same parent company
at the hire or rental rate multiplied by the time for which the Equipment is required.
60
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Schedule of Cost Components 22
Paymen Pay ments ts for Equi Equipmen pmentt whic which h is not lis listed ted in the the Con Contra tract ct Dat Data a but but is . .
.
owned by the Contractor , purchased by the Contractor under a hire purchase or lease agreement or hired by the Contractor from the Contractor ’s ’ s parent company or from a company with the same parent company
at op open en ma mark rket et ra rate tes, s, mul multi tipl plie ied d by th the e ti time me fo forr wh whic ich h th the e Equ Equipm ipment ent is required. Payme Pa yment nts s for Equip Equipme ment nt purch purchas ased ed for work work incl include uded d in this cont contrac ractt liste listed d with a time-related on cost charge, in the Contract Data, of
23
.
.
the change in value over the period for which the Equipment is required and the th e ti time me-r -rel elat ated ed on co cost st ch char arge ge st stat ated ed in th the e Co Cont ntra ract ct Da Data ta fo forr th the e period for which the Equipment is required.
The change in value is the difference between the purchase price and either the sale price or the open market sale price at the end of the period for which the Equipment is required. Interim payments of the change in value are made at each assessment date. A final payment is made in the next assessment after the change in value has been determined. If th the e Project Project Mana Manager ger agree agrees, s, an ad addi diti tion onal al it item em of Equ Equipm ipmen entt may be assessed as if it had been listed in the Contract Data. 24
Paymen Pay ments ts for for spec special ial Equi Equipmen pmentt liste listed d in the Con Contra tract ct Data Data.. These These amo amount unts s are the rates stated in the Contract Data multiplied by the time for which the Equipment is required. Manager ger agrees, an additional item of special Equipment may If the Project Mana be assessed as if it had been listed in the Contract Data.
25
Paymen Pay ments ts for the pur purchas chase e pric price e of of Equi Equipmen pmentt whic which h is is cons consumed umed..
26
Unless Unl ess inc include luded d in in the the hir hire e or rent rental al rat rates, es, pay payment ments s for .
. .
27
Paymen Pay ments ts for for purc purchas hase e of mate materia rials ls used used to cons constru truct ct or or fabri fabricat cate e Equipme Equipment. nt.
28
Unless inc Unless include luded d in the the hire hire rate rates, s, the the cost cost of of operat operative ives s is inc include luded d in the the cost cost of people.
Plant Pla nt and and Mat Materi erials als 3
31
. . .
32
4
41
The follow following ing compone components nts of the cost of charges paid by the the Contractor. Paymen Pay ments ts for pro provis vision ion and use in the Wor Workin king g Are Areas as of . . .
www.neccontract.com
purchasing Plant and Materials, delivery to and removal from the Working Areas, providing providi ng and removing packaging and samples and tests.
Cost is cred Cost credit ited ed with with payme payment nts s recei receive ved d for disp dispos osal al of Plan Plantt and Mater Materia ials ls unless the cost is disal disallowed. lowed.
water, gas and electricity.
# copyright
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o
s t n t e s n o o c p m o c
t c a a r t t a n d o c
The follow following ing compone components nts of the cost of Plant and Materi Materials. als. Payments for .
Char Ch arge ges s
transporti transpo rting ng Equi Equipmen pmentt to and fro from m the Wor Workin king g Are Areas as oth other er tha than n for repair and mainten maintenance, ance, erecting erecti ng and dismantling Equipment and cons co nstr truc ucti ting ng,, fa fabr bric icat atin ing g or mo modi dify fyin ing g Eq Equi uipme pment nt as a re resu sult lt of a compensation event.
s e e r s o u c l a c
nec 2013 61
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract 42
Payments Payment s to publi public c author authoriti ities es and and other other prop properl erlyy consti constitut tuted ed autho authorit rities ies of of charges which they are authorised to make in respect of the works.
43
Payments for
44
s e e r s o u c l a c
Manufacture and 5 fabrication
cancellation charges cancellation charges arising from a compensation compensation event buying or leasi leasing ng land compensation compens ation for loss loss of crops or buildings buildings royalties royalt ies
(e) (f) (g) (h) (i)
inspec inspection tion cert charges forcertificate accificates access ess tos the the Working Working Areas Areas facilities facil ities for visits visits to the Working Areas Areas by Others specialist specia list services services consumables consuma bles and equipmen equipmentt provided provided by the Contractor for for the Project Manager ’s ’s and Supervisor ’s ’s offices.
A charge charge for ove overhe rhead ad costs costs inc incurr urred ed with within in the the Worki Working ng Areas Areas cal calcul culate ated d by applying the percentage for Working Areas overheads stated in the Contract Data to the total of people items 11, 12, 13 and 14. The charge includes provision and use of equipment, supplies and services, but excludes accommodation, for
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o
(a) (b) (c) (d)
(a) (b) (c) (d) (e) (f)
catering catering medical facilit facilities ies and first aid recreation recrea tion sanitation sanita tion security securi ty copying cop ying
(g) (h) (i) (j)
telephone, telex, fax, telephone, fax, radio and CCTV surveying surveyi ng and setting setting out computi com puting ng hand tools tools not powered powered by compres compressed sed air. air.
The followi following ng components components of the the cost cost of manufac manufacture ture and fabrica fabrication tion of Plant Plant and Materials which are . .
s t n t e s n o o c p m o c
51
The tota totall of the hour hours s worke worked d by emplo employee yees s multi multipl plie ied d by the hour hourly ly rate rates s stated in the Contract Data for the categories of employees listed.
52
An amount amount for for over overhe head ads s calcu calcula late ted d by multi multipl plyi ying ng this this tota totall by the perc percen en-tage tag e for man manufac ufactur turing ing and fab fabric ricati ation on ove overhe rheads ads sta stated ted in the Con Contra tract ct Data.
Desi De sign gn 6
t c a a r t t a n d o c
The foll followi owing ng compon component ents s of the cos costt of desi design gn of the works and Equipment done outside the Working Areas. The tota totall of the hour hours s worke worked d by emplo employee yees s multi multipli plied ed by the the hourly hourly rate rates s stated in the Contract Data for the categories of employees listed.
61
Insura Ins uranc nce e
62
An amount amount for for over overhea heads ds calc calcul ulat ated ed by mult multipl iplyi ying ng this this tota totall by the perc percen en-tage for design overheads stated in the Contract Data.
63
The cost cost of trav travel el to to and fro from m the Wor Workin king g Areas Areas for for the the cate categor gories ies of desig design n employees employe es listed in the Contr Contract act Data.
7
The follo following wing are deduct deducted ed from cost .
.
62
# copyright
nec 2013
wholly or partly designed specifically for the works and manufactured manufac tured or fabric fabricated ated outside the Worki Working ng Areas Areas..
the co the cost st of ev event ents s fo forr wh whic ich h th this is co cont ntra ract ct re requ quir ires es th the e Contractor to insure and other costs paid to the Contractor by by insurers.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd
SHORTER SCHEDULE OF COST COMPONENTS
This schedule is part of the conditions of contract only when Option A, B, C, D or E is used. When Option C, D or E is used, this schedule is used by agreement for assessing compensation events. When Option C, D or E is used, in this schedule the Contractor means the Contractor and not his Subcon Subcontrac trac-tors to rs.. An am amoun ountt is in incl clude uded d on only ly in on one e co cost st co comp mpone onent nt an and d onl onlyy if it is incurred in order to Provide the Works. Peop Pe ople le 1
The follow following ing compone components nts of the cost of .
.
.
11
Equipm Equ ipment ent 2
Amoun untts paid by the Contractor including including those for meeting the requirements of the law and for pension provision.
The follo followin wing g componen components ts of the cost cost of Equip Equipment ment whic which h is used withi within n the Working Areas (including the cost of accommodation but excluding Equipment cost covered by the percentage for people overheads).
21
Amounts Amoun ts for for Equipm Equipment ent whi which ch is in the the publ publis ishe hed d list list state stated d in the Cont Contra ract ct Data. These amounts are calculated by applying the percentage adjustment for listed Equipment stated in the Contract Data to the rates in the published list and by multiplying the resulting rate by the time for which the Equipment is required.
22
Amount Amou nts s fo forr Eq Equi uipm pmen entt li list ste ed in the the Co Cont ntra ract ct Data Data whic which h is not not in the the publ pu blis ishe hed d li list st st stat ated ed in th the e Co Cont ntra ract ct Da Data ta.. Th Thes ese e amo amount unts s ar are e th the e ra rate tes s stated in the Contract Data multiplied by the time for which the Equipment is required.
23
The tim time e requir required ed is is expre expresse ssed d in hour hours, s, days days,, weeks weeks or month months s consis consisten tently tly with the list of items of Equipment in the Contract Data or with the published list stated in the Contract Data.
24
Unless the ite Unless item m is in the the publ publish ished ed list list and the the rate rate inc include ludes s the the cost cost compo compo-nent, payments for .
. .
www.neccontract.com
people who are directly employed by the Contractor and whose normal place of working is within the Working Areas, people who are directly employed by the Contractor and whose normal place of working is not within the Working Areas but who are working in the Working Areas and people who are not directly employed by the Contractor but are paid for by him according to the time worked while they are within the Working Areas.
transporti transpo rting ng Equi Equipmen pmentt to and fro from m the Wor Workin king g Are Areas as oth other er tha than n for repair and mainten maintenance, ance, erecting erecti ng and dismantling Equipment and cons co nstr truc ucti ting ng,, fa fabr bric icat atin ing g or mo modi dify fyin ing g Eq Equi uipme pment nt as a re resu sult lt of a compensation event.
25
Unless the ite Unless item m is in the the publ publish ished ed list list and the the rate rate inc include ludes s the the cost cost compo compo-nent, the purchase price of Equipment which is consumed.
26
Unless Unle ss incl include uded d in the rate rate in the the publ publis ishe hed d list, list, the the cost cost of opera operati tive ves s is included in the cost of people.
27
Amounts Amoun ts for for Equip Equipme ment nt whic which h is neith neither er in the the publi publish shed ed list list stat stated ed in the the Contra Con tract ct Dat Data a nor lis listed ted in the Contract Contract Dat Data, a, at com competi petitiv tively ely ten tender dered ed or open market rates, multiplied by the time for which the Equipment is required.
# copyright
nec 2013 63
s e e r s o u c l a c
s e s u a n l i a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o
s t n t e s n o o c p m o c
t c a a r t t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Plant nt and and Mat Materi erials als 3 Pla
31
The follo following wing compone components nts of the cost of Plant Plant and Materi Materials. als. Payments for . . . .
32
Char Ch arge ges s
4
Cost is cred Cost credit ited ed with with paymen payments ts rece receiv ived ed for for dispo disposa sall of Plant Plant and Mate Materi rial als s unless the cost is disal disallowed. lowed.
41
The follo following wing compone components nts of the cost of charges charges paid by the the Contractor. A charg charge e calcul calculate ated d by app applyi lying ng the the perc percent entage age for peop people le over overhea heads ds stat stated ed in the Contract Data to people item 11 to cover the costs of .
s e e r s o u c l a c
.
.
s e s u a n l i a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o
Payment Pay ments s for for can cancel cellat lation ion cha charge rges s aris arising ing fro from m a com compens pensati ation on even event. t.
43
Payments Payment s to publi public c author authoriti ities es and and other other prope properly rly cons constit titute uted d author authoriti ities es of charges which they are authorised to make in respect of the works.
44
Consuma Cons umabl bles es and eq equi uipme pment nt pr prov ovid ided ed by th the e Contractor for the Project Manager ’s ’s and Supervisor ’s ’s office.
45
Spec Sp ecia iali list st se serv rvic ices es..
The followi following ng components components of the the cost cost of manufac manufacture ture and fabrica fabrication tion of Plant Plant and Materials, which are . .
51 Desi De sign gn 6
t c a a r t t a n d o c
Insura Ins uranc nce e
The foll followi owing ng compon component ents s of the cos costt of desi design gn of the works and Equipment done outside the Working Areas.
61
The tota totall of the hour hours s worke worked d by emplo employee yees s multi multipli plied ed by the the hourly hourly rate rates s stated in the Contract Data for the categories of employees listed.
62
An amount amount for for over overhea heads ds calc calcul ulat ated ed by mult multipl iplyi ying ng this this tota totall by the perc percen en-tage for design overheads stated in the Contract Data.
63
The cost cost of trav travel el to to and fro from m the Wor Workin king g Areas Areas for for the the cate categor gories ies of desig design n employees employe es listed in the Contr Contract act Data.
7
The follo following wing are deduct deducted ed from cost .
# copyright
nec 2013
wholly or partly designed specifically for the works and manufactured manufac tured or fabric fabricated ated outside the Worki Working ng Areas Areas..
Amou Am ount nts s pa paid id by the Contractor.
.
64
payments for the provision and use in the Working Areas of water, gas and electricity, payments for buying or leasing land, compensation for loss of crops or buildi bui ldings, ngs, roy royalt alties ies,, ins inspec pectio tion n cer certifi tificat cates, es, char charges ges for acc access ess to the Working Areas, facilities for visits to the Working Areas by Others and payments for the provision and use of equipment,supplies and services (excluding accommodation) for catering, medical facilities and first aid, recrea rec reatio tion, n, san sanita itatio tion, n, sec securit urity, y, copy copying ing,, tel teleph ephones ones,, tel telex, ex, fax fax,, rad radio, io, CCTV, surveying, setting out, computing and hand tools not powered by compressed air.
42
Manufacture and 5 fabrication
s t n t e s n o o c p m o c
purchasing Plant and Materials, delivery to and removal from the Working Areas, providing providi ng and removing packaging and samples and tests.
costs against which this contra contract ct required the Contractor to to insure and other costs paid to the Contractor by by insurers.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd
CONTRACT DATA
Part one – Data provided by the Employer the Employer
Completion of the data in full, according to the Options chosen, is essential to create a complete contract. Statements given in all contracts
1 General
.
.
The conditions conditions of contra contract ct are the core clauses and the clauses for main Option . . . . , dispute dispute resolu resolution tion Optio Option n . . . and seconda secondary ry Options Options . . . of the the NEC3 Engineering and Constr Constructio uction n Contra Contract ct April 2013. The works are ..............................................................
.
The Employer is is Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..............................................................
.
The Project Manager is is Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..............................................................
.
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o
The Supervisor is is Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..............................................................
.
s e e r s o u c l a c
The Adjudicator is is
s t n t e s n o o c p m o c
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................................................. .
The Works Information is in .............................................................. .............................................................. ..............................................................
.
The Site Information is in .............................................................. .............................................................. ..............................................................
www.neccontract.com
# copyright
nec 2013 65
c a a r t t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract .
The boundaries of the site are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The language of this contract is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The law of the contract is the law of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The period for reply is is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . we week eks. s.
.
The Adjudicator nominating body is is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The tribunal is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... .........................
.
The following matters will be included in the Risk Register ..................................... ......................... ..................................... .........................
s e e s r o u c l a c
..................................... .........................
3 Time
.
The starting date is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The access dates are
s e s u a n i l a c m n o i t p o
.
s y e s r a u a d l n c o n c o e i s t p o
Part of the Site
Date
1 . . . . . . . . . . . . . . . . . . . . . . . . .
...........................
2 . . . . . . . . . . . . . . . . . . . . . . . . .
...........................
3 . . . . . . . . . . . . . . . . . . . . . . . . .
...........................
The Contractor submits submits rev revise ised d pro progra grammes mmes at inte interva rvals ls no lon longer ger tha than n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . we week eks. s.
4 Testing and Defects
s t n t e s n o o c p m o c
5 Paymen Paymentt
.
The defects date is . . . . . weeks after after Completi Completion on of the whole of the works.
.
The defect correction period is . . . . . . . . . . . . . . . . . . . . . . weeks weeks exce except pt that that .
The defect correction period for . . . . . . . . . . . . . is . . . . . . . . . . . . we week eks s
.
The defect correction period for . . . . . . . . . . . . is . . . . . . . . . . . . . we week eks. s.
.
The currency of this contract is the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The assessment interval is . . . . . . . . . . . . . . . . . wee weeks ks (not (not more more than than five). five).
.
The interest rate is . . . . . % per per annum annum (not (not less less than than 2) 2) above above the the . . . . . . rate of the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ba bank nk..
t c a a r t t a n d o c
66
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Contract Data Part 1 6 Compensation events
.
The place where weather is to be recorded is ..............................................................
.
The weather measurements to be recorded for each calendar month are . . .
. .
the cumulative rainfall (mm) the number of days with rainfall more than 5 mm the number of days with minimum air temperature less than 0 degrees Celsius the number of days with snow lying at . . . . . . . . . . . . . . . . . . ho hour urs s GMT GMT and these measurements: ..................................... ............. ......... ..................................... ............. ......... ..................................... ............. .........
.
The weather measurements are supplied by . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The weather data are the records of past weather measurements for each calendar month which were recorded at . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and which are available from . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..............................................................
Where no recorded data are available .
Assume Ass umed d val values ues for the ten yea yearr ret return urn weather weather data for eac each h weather measurement for each calendar month are .............................................................. .............................................................. .............................................................. ..............................................................
8 Risks and insurance
.
The mi The mini nimum mum li limi mitt of in inde demni mnity ty fo forr in insu sura rance nce in re resp spec ectt of lo loss ss of or damage to property (except the works, Plant and Materials and Equipment) and liability for bodily injury to or death of a person (not an employee of the Contractor ) caused by activity in connection with this contract for any one event is ..............................................................
.
The mi The mini nimum mum li limi mitt of in inde demni mnity ty fo forr in insu sura ranc nce e in re resp spec ectt of de deat ath h of or bodily injury to employees of the Contractor arising arising out of and in the course of their employment in connection with this contract for any one event is ..............................................................
Optional statements
tribunal is If the tribunal is arbitration .
The arbitration procedure is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The place where arbitration is to be held is ..............................................................
.
The person or organisation who will choose an arbitrator .
if the Parties cannot agree a choice or
.
if the arbitration procedure does not state who selects an arbitrator is
..............................................................
www.neccontract.com
# copyright
nec 2013 67
s e e r s o u c l a c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a a r t t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract If the Employer has decided the completion the completion date for date for the whole of the works the Employer has .
The completion date for the whole of the works is . . . . . . . . . . . . . . . . . . . . . .
If the Employer Employer is not wil willin ling g to take over the works before the Comp Completion letion Date .
The Employer is not willing to take over the works before the Comple Completion tion Date.
If no programme is identified in part two of the Contract Data .
The Contractor is is to submit a first programme for acceptance within . . . . . . . weeks of the Contract Date.
If the Employer Employer has identified work which is to meet a stated condition by a key date
s e e r s o u c l a c
.
The key dates and conditions to be met are condition to be met
s e s u a n l i a c m n o i t
key date
1 . . . . . . . . . . . . . . . . . . . . . . . . .
...........................
2 . . . . . . . . . . . . . . . . . . . . . . . . .
...........................
3 . . . . . . . . . . . . . . . . . . . . . . . . .
...........................
If the period in which payments are made is not three weeks and Y(UK)2 is not used
p o
.
s e y r s a u a d l n c o n c o e i s t p o
The period within which payments are made is . . . . . . . . . . . . . . . . . . . . . . . .
If Y(UK)2 is used and the final date for payment is not 14 days after the date when payment is due .
The period for payment is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If there are additional Employer additional Employer ’s ’s risks .
s t n t e s n o o c p m o c
These are additional Employer ’s ’s risks 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If the Employer the Employer is to provide Plant and Materials .
t c a a r t t a n d o c
The insurance against loss of or damage to the works, Plant and Materials is to include cover for Plant and Materials provided by the Employer for an amount of ..................................... .........................
68
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Contract Data Part 1 Employer is to pro provid vide e any of the insuranc insurances es sta stated ted in the Insuranc Insurance e If the Employer Table .
The Employer provides provides these insurances from the Insurance Table 1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If additional insurances are to be provided .
The Employer provides provides these additional insurances 1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
s e e r s o u c l a c
The Contractor provides provides these additional insurances 1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s e s u a n l i a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
3. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If Option B or D is used .
The method of measurement is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . amended as follow follows s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................... ............. ............. ..... ............................... ............. ............. .....
www.neccontract.com
# copyright
nec 2013 69
c a a r t t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract If Option C or D is used .
The Contractor ’s share percentages and the share ranges are share range
Contractor ’s ’s share percentage
less than . . . . . . . . . . . . . . . . . %
. .. .. .. .. .. .. .. .. .. .. .. .. .. %
from . . . . . . . .% to to . . . . . . . . %
. .. .. .. .. .. .. .. .. .. .. .. .. .. %
from . . . . . . . .% to to . . . . . . . . %
. .. .. .. .. .. .. .. .. .. .. .. .. .. %
greater than . . . . . . . . . . . . . . . %
. . . . . . . . . . . . . . . . . . . . . . . . . . . %.
If Option C, D, E or F is used .
The Contractor prepares prepares forecasts of Defined Cost for the works at intervals no longer than . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . we week eks. s.
s e e r s o u c l a c
.
The exchange rates are those published in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d (dat ate) e)..
If Option X1 is used s e s u a n i l a c m n o i t
.
The proportions used to calculate the Price Adjustment Factor are 0. . . . . . . . . . . linked to the index for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . . . .
................................
0. . . . . . . . . . .
................................
p o
0. . . . . . . . . . .
................................
s e y r s a u a d l n c o n c o e i s t p o
0. . . . . . . . . . .
................................
0. . . . . . . . . . .
................................
0. . . . . . . . . . . non-adjustable ——————— 1.00
s t n t e s n o o c p m o c
.
The base date for indices is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The indices are those prepared by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option X3 is used .
t c a a r t t a n d o c
.
The Employer will will pay for the items or activities listed below in the currencies stated items and activities
other cur urrrenc ncyy
total maximu mum m pay aym ment in the currency
. . .. . .. . .. . .. . .. . .. . .. . ..
. . . .. . . .. . .. .
. . .. . .. . .. . . .. . . .. . .
. . .. . .. . .. . .. . .. . .. . .. . ..
. . . .. . . .. . .. .
. . .. . .. . .. . . .. . . .. . .
. . .. . .. . .. . .. . .. . .. . .. . ..
. . . .. . . .. . .. .
. . .. . .. . .. . . .. . . .. . .
. . .. . .. . .. . .. . .. . .. . .. . ..
. . . .. . . .. . .. .
. . .. . .. . .. . . .. . . .. . .
The exchange rates are those published in . . . . . . . . . . . . . . . . . . . . . . . . . . . on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d (dat ate) e)..
70
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Contract Data Part 1 If Option X5 is used .
The completion date for each section of the works is section description
completion date
1
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
2
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
3
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
4
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
If Options X5 and X6 are used together .
The bonus for each section of the works is section description
amount per day
1
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
2
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
3
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
4
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
Remainder of the works .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Options X5 and X7 are used together .
1
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
2
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
3
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
4
. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option X6 is used (but not if Option X5 is also used) .
The bonus for the whole of the works is . . . . . . . . . . . . . . . . . . . . . . . per day.
If Option X7 is used (but not if Option X5 is also used) .
The Client is Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..............................................................
The Client’s objective is .............................................................. .............................................................. .............................................................. .............................................................. .............................................................. ..............................................................
www.neccontract.com
s t n t e s n o o c p m o c
t c a a r t t a n d o c
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
s e y r s a u a d l n c o n c o e i s t p o
Delay damages for Completion of the whole of the works are . . . . . . per day.
If Option X12 is used .
s e s u a n i l a c m n o i t p o
Delay damages for each section of the works are amount per day
section description
Remainder of the works .
s e e r s o u c l a c
# copyright
nec 2013 71
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract .
The Partnering Information Information is in ..................................... ......................... ..................................... ......................... ..................................... ......................... ..................................... .........................
If Option X13 is used .
The amount of the performance bond is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option X14 is used .
.
s e e r s o u c l a c
.
The amount of the advanced payment is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Contractor repays repays the ins instal talment ments s in ass assess essmen ments ts sta starti rting ng not les less s than . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . wee weeks ks after after the the Contra Contract ct Date. Date. The instalments are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... .........................
(either an amount or a percentage of the payment otherwise due)
s e s u a n i l a c m n o i t
.
An advanced payment bond is/is not required.
If Option X16 is used
p o s e y r s a u a d l n c o n c o e i s t p o
.
The retention free amount is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The retention percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
If Option X17 is used .
The amounts for low performance damages are amount
performance level
. . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s t n t e s n o o c p m o c
. . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If Option X18 is used .
t c a a r t t a n d o c
.
.
.
.
The Contractor ’s ’s liability to the Employer for for indirect or consequential loss is limi li mite ted d to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Employer For any one event, the Contractor ’ sisliability damage to the Employer ’s ’ s property’s limitedto to.the . . . . . . . . . . . .for . . .loss . . . . of . . .or
The Contractor ’s ’s liability for Defects due to his design which are not listed on the Defects Certificate is limited to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Contractor ’s ’ s to tota tall li liab abil ilit ityy to th the e Employer for al alll ma matt tter ers s ar aris isin ing g underr or in con unde connect nection ion wit with h thi this s cont contrac ract, t, oth other er tha than n exc exclud luded ed mat matter ters, s, is li limi mite ted d to. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The end of lia liabil bility ity dat date e is . . . . . . . . . . . .years after the Completion of the whole of the works.
If Option X20 is used (but not if Option X12 is also used) .
.
72
# copyright
nec 2013
The incentive schedule for Key Performance Indicators is in . . . . . . . . . . . . . . A report of performance against each Key Performance Indicator is provided at intervals of . . . . . . . . . . mon months ths..
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Contract Data Part 1 Employer is to pay any charges made and is If Option Y(UK)1 is used and the Employer paid any interest paid by the project bank .
The Employer is to pay any charges made and is paid any interest paid by the project bank .
If Option Y(UK)3 is used .
term
person or organisation
. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
If Options Y(UK)1 and Y(UK)3 are both used .
term
person or organisation
The Th e pr prov ovis isio ions ns of Op Opti tion on Y( Y(UK UK)1 )1
Name Na med d Su Supp ppli lier ers s
If Option Z is used .
The additional conditions of contract are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..............................................................
s e e r s o u c l a c
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a a r t t a n d o c
www.neccontract.com
# copyright
nec 2013 73
For use on projects associated with UK Shared Business Services Ltd
Part two – Data provided by the Contractor
Completion of the data in full, according to the Options chosen, is essential to create a complete contract. Statements given in all contracts
.
The Contractor is is Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... .........................
s e e r s o u c l a c
.
The direct fee percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
.
The subcontracted fee percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
.
The working areas are the Site and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
The key people are (1) Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s e s u a n l i a c m n o i t
Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... .........................
p o
Qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s e y r s a u a d l n c o n c o e i s t p o
Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... .........................
(2) Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... .........................
s t n t e s n o o c p m o c
Qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... ......................... .
The following matters will be included in the Risk Register ..................................... .........................
t c a a r t t a n d o c
..................................... ......................... ..................................... ......................... ..................................... ......................... Optional statements
If the Contractor is to provide Works Information for his design .
The Works Information for the Contractor ’s ’s design is in ..................................... ......................... ..................................... ......................... ..................................... ......................... ..................................... ......................... ..................................... ......................... ..................................... .........................
74
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Contract Data Part 2 If a programme is to be identified in the Contract Data .
The programme identified in the Contract Data is . . . . . . . . . . . . . . . . . . . . . .
If the Contractor the Contractor is is to decide the completion the completion date for date for the whole of the works .
The completion date for the whole of the works is . . . . . . . . . . . . . . . . . . . . . .
If Option A or C is used .
The activity schedule is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option B or D is used .
The bill of quantities is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option A, B, C or D is used .
The tendered total of the Prices is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option F is used .
Work which the Contractor will will do himself is activity
price (lump sum or unit rate)
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . .
. . . . . .. . . . . .. . . . . .. . . . . . .. .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . .
. . . . . .. . . . . .. . . . . .. . . . . . .. .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . .
. . . . . .. . . . . .. . . . . .. . . . . . .. .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . .
. . . . . .. . . . . .. . . . . .. . . . . . .. .
If Option Y(UK)1 is used .
The project bank is is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
named suppliers are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option A or B is used Data for the Shorter Schedule of Cost Components
.
The percentage for people overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %. %.
.
The published list of Equipment is the last edition of the list published by ..............................................................
.
The percentage for adjustment for Equipment in the published list is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . % (sta (state te plu plus s or minu minus) s)..
.
.
.
www.neccontract.com
s e e r s o u c l a c
s e s u a n l i a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
The rates for other Equipment are Equipment . . .. . .. . .. . .. . .. . .. . .. . .. . .. .
size or capacity . . .. . .. . .. . .. . .. . ..
rate . . .. . .. . . .
. . .. . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . ..
. . .. . .. . . .
. . .. . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . ..
. . .. . .. . . .
. . .. . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . ..
. . .. . .. . . .
The hourly rates for Defined Cost of design outside the Working Areas are category of employee
hourly rate
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . .
. . . . . .. . . . . .. . . . . . .. . . . .. .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . .
. . . . . .. . . . . .. . . . . . .. . . . .. .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . .
. . . . . .. . . . . .. . . . . . .. . . . .. .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . .
. . . . . .. . . . . .. . . . . . .. . . . .. .
The percentage for design overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %. %.
# copyright
nec 2013 75
t c a a r t t a n d o c
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract .
The categories of design employees whose travelling expenses to and from the Working Areas are included in Defined Cost are ..................................... ......................... ..................................... ......................... ..................................... ......................... ..................................... .........................
If Option C, D or E is used Data for Schedule of Cost Components
.
s e e r s o u c l a c
s e s u a n i l a c m n o i t
.
The listed items of Equipment purchased for work on this contract, with an on cost charge, are Equipment
time-related charge
per time period
. . . . . .. . . . . .. . . . . .. . . . . .. .
. . . . . . . . . . . . . . . . . . . per . . . . . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. .
. . . . . . . . . . . . . . . . . . . per . . . . . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. .
. . . . . . . . . . . . . . . . . . . per . . . . . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. .
. . . . . . . . . . . . . . . . . . . per . . . . . . . . .
The rates for special Equipment are Equipment
size or capacity
rate
. . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . ..
. . . .. . .. . .. . .
p o
. . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . ..
. . . .. . .. . .. . .
s e y r s a u a d l n c o n c o e i s t p o
. . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . ..
. . . .. . .. . .. . .
. . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . ..
. . . .. . .. . .. . .
.
.
s t n t e s n o o c p m o c
.
t c a a r t t a n d o c
The percentage for Working Areas overheads is . . . . . . . . . . . . . . . . . . . . . %. %. The hour hourly ly rat rates es for Defi Defined ned Cos Costt of manu manufac factur ture e and fab fabric ricati ation on out outsid side e the Working Areas are category of employee
hourly rate
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .
The percentage for manufac manufacture ture and fabric fabrication ation overheads is . . . . . . . . . . %.
If Option C, D or E is used Data for both schedules of cost components
.
.
76
# copyright
nec 2013
The hourly rates for Defined Cost of design outside the Working Areas are category of employee
hourly rate
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .
The percentage for design overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %. %.
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Contract Data Part 2 .
The cat catego egorie ries s of des design ign empl employe oyees es who whose se tra travell velling ing exp expens enses es to and from the Working Areas are included as a cost of design of the works and Equipment done outside of the Working Areas are .............................................................. .............................................................. .............................................................. ..............................................................
If Option C, D or E is used Data for the Shorter Schedule of Cost Components
.
The percentage for people overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %. %.
.
The published list of Equipment is the last edition of the list published by ..............................................................
.
The Th e pe perc rcen enta tage ge fo forr ad adju just stmen mentt fo forr Equ Equip ipme ment nt in th the e pu publ blis ishe hed d li list st is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . % (sta (state te plu plus s or minu minus) s)..
.
s e e r s o u c l a c
The rates for other Equipment are Equipment
size or capacity
rate
. . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . ..
. . . .. . . .. . . ..
. . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . ..
. . . .. . . .. . . ..
. . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . .. . .. . .. .
. . .. . .. . .. . .. . .. . .. . . .. . .. . .. . .. . .. . ..
. . . .. . . .. . . .. . . . .. . . .. . . ..
s e s u a n i l a c m n o i t p o s e y r s a u a d l n c o n c o e i s t p o s t n t e s n o o c p m o c
t c a a r t t a n d o c
www.neccontract.com
# copyright
nec 2013 77
For use on projects associated with UK Shared Business Services Ltd
®
Engineering and Construction Contract Index by clause numbers (Option clauses indicated by their letters, main clause heads by bold numbers). Terms in italics are identified in Contract Data, and defined terms have capital initial letters.
acceleration 36 , A36.3, B36.3, C36.3, D36.3, E36.4, F36.4 compensation events 60.1(9) Key Date 36.1 quotations 36.1, B11.2(21), D11.2(21) acceptance addition to Working Areas 15.1 conditions of subcontract 26.3 contract data for subcontract C26.4, D26.4, E26.4, F26.4 Contractor ’s ’s communication 13.4, 13.8, 14.1 Contractor ’s ’s design 21.2, 21.3 Defects 44 , 60.1(1)(9) Equipmentt design 23.1 Equipmen form of communic communication ation 13.1 insurance policies/certificates 85.1, 87.1, 87.2 programme (first/revised) 31.3, 32.2, 50.3, 64.12, A31.4, A36.3, B36.3, C31.4, C36.3, D36.3 quotations 44.2, 60.1(9), 62.3, 65.1, A36.3, A65.4, B36.3, C36.3, D36.3, E36.4, F36.4 reasons reaso ns for withholding withholding 13.4, 13.8, 15.1, 21.2, 23.1, 24.1, 26.23, 31.3, 60.1(9), 85.1, 87.1, A54.3, C26.4, D26.4, E26.4, F26.4, X13.1 replacement Contractor ’s ’s employee 24.1 subcontract conditions 26.3 Subcontractor 26.2, 91.2 acceptance procedure C11.2(25), D11.2(25), E11.2(25) Works Information F11.2(26) Accepted Programme 62.2 absence 64.2 and Activity Schedule A54.2, A54.3, C54.2, C54.3 changes 32.1, 63.7 dates/times 33.1, 60.1(2)(3)(5), 63.3 definition 11.2(1) prevention 19.1, 60.1(19) termination 91.7 see also programme access 27.2, 43.4 to Site 31.2 and use of Site 33 access date 30.1, 31.2 Site 33.1 accounts and records, Contractor ’s ’s C11.2(25), C52.2, C52.3, D11.2(25), D52.23, E11.2(25), E52.2, E52.3, F11.2(26), F52.2, F52.3 actions 10 , 11.2(13,14), 14.2, 16.3, X12.2 activity schedule A11.2(20), C11.2(20) Activity Schedule A11.2(20,30), A31.4, A54.1 3, A63.12, C11.2(20)(30), C31.4, C54.13, C63.12
Acts Contracts (Rights of Third Parties) (1999) Y(UK)3 Housing Grants, Construction and Regeneration (1996) as amended by the Local Democracy, Economic Development and Construction Act 2009 W1 , W2 , Y(UK)2 additional conditions of contract Z1
adjudication dispute resolution W1.3(111), W2.3(112) timings W1.3(8), W1.3(11), W2.3(2)(8)(1112) Adjudication Table W1.3(1) Adjudicator
decisions 51.3 dispute resolution W1.2(1-5), W2.2(1 5) nominating body W1.2(3), W1.2(3), W2.2(3) not arbitrator W1.2(2), W2.2(2) replacement W1.2(4), W2.2(4) resignation of W1.2(3) tribunal W1.3(2)(10), W2.3(11) tribunal reviews W1.4(14)(6), W2.4(13) administration order 91.1 advanced advance d payment 93.1, X14.13 repayment X14.3 advanced advance d payment bond X14.2 advanced payment(s) 93.1, X14.1 3 agents of Adjudicator Adjudicator W1.2(5), W1.2(5), W2.2(5) agreement, Parties/Party 12.4 ambiguities 17 , 60.3, 63.8, B60.6, D60.6 amount due adjustment adjus tment for inflati inflation on X1.1(b X1.1(b), ), X1.2, X1.4, X1.5 and advanced payment repayme repayment nt 93.1, X14.3 assessing 50 , 51.1, 51.3, 90.4, 93.1, C50.6, C53.3 X1.4 4, D50.6, E50.7, F50.7, X1.1(b), X1.2, Contractor ’s ’s share D53.78 correction of assessment 50.5, 51.3, X1.2 definition 50.2 payment 51.1, 51.3 retention in 93.1, X16.1 on termi termination nation 90.2, 90.4, 93.1, 93.2, A93.3 amount retained 50.3, X16.1, X16.2 applicable applica ble law 11.2 11.2(5), (5), 21.2, 23.1, 84.2 tests and inspections 40.1 approval from Others, Contractor ’s ’s design 27.1 arbitration procedure W1.4(5), W2.4(4) arrangement with creditors 91.1 assessment Adjudicator W1.3(7), W1.3(7), W2.3(7) amount due 50 , 51.1, 51.3, 90.4, 93.1, C50.6, C53.3, C53.4, D50.6, D53.7, D53.8, E50.7,
revised A54.2, A54.3, C54.2, C54.3
78
# copyright
nec 2013
F50.7,, X1.1(b F50.7 X1.1(b), ), X1.2, X1.4, X1.5
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Index compensation events 62.23, 63 , 64 , 65.12, A63.10, A63.12, A65.4, B63.1013, C52.2, C63.1112, C63.15, D11.2(25), D52.2, D63.13, D63.15, E11.2(25), E52.2, E63.15, F52.2, X1.3 Contractor ’s ’s share C53.1, C53.34, C93.4, C93.6, D53.5, D53.78, D93.56 Defect(s) correction cost 45.2
indemnity against 83.1, 83.2 co-operation at risk reduction meeting 16.3 co-operation with Others 25.13 co-operation and trust 10.1, 26.3, X12.3(1) communications 13 and acceptance of submis submission sion 13.4, 13.8, 14.1 address to which sent 13.2 Adjudicator W1.3(6), W1.3(6), W2.3(6)
interest 51.2, 51.3 tests/inspections cost 40.6 assessment date 50.1, 50.4, 51.1 2, C11.2(29), D11.2(29), E11.2(29), F11.2(29), X7.2, Y2.2 assessment interval 50.1 assignment assign ment of benefit 92.2 Authorisation Projectt Bank Account Y1.1(1), Y1.9, Y1.10 Projec availability of resources C11.2(25), D11.2(25), E11.2(25)
calculations, assessment of compensation events for Subcontractors C52.2, D52.2, E52.2, F52.2 certificate(s)/certification communication communic ation of 13.1, 13.6 Completion 30.2, 35.2 Defects 43.3, 50.1 payment 50.5, 51.13, 90.4, 91.4 take-over date 35.3, 60.1(15)
assessment of compens assessment compensation ation events for Subcontractors C52.2, D52.2, E52.2, F52.2 certificate(s) 13.6 form defined 13.1 language languag e for 13.1 notification(s) 13.7 period for reply 13.3, 13.3, 13.5 receipt of 13.2 time allowed for reply 13.3, 13.5, 31.3, 32.2, 60.1(6) time when effec effective tive 13.2 compensation Employer ’s ’s risk 80.1 see also indemnity compensation events 60 amount due affected by 51.3 assessing assess ing 62.23, 63, 64, 65.12, A63.10, A63.12, A65.4, B63.1013, C52.2, C63.1112, C63.15, D11.2(25), D52.2, D63.13, D63.15, E11.2(25), E11.2(25 ), E52.2, E63.15, F52.2, X1.3 assumptions made 60.1(17), 61.6, 63.7, 65.2 Completion Date affected by 62.2, A65.4, B65.4, C65.4, D65.4 Completion Date notification 61.3 Contractor 60.1(1)(8)(10)(12)(19), 60.1(1)(8)(10)(12)(19), 60.2, 60.3, 61.16, F20.5 and Defined Cost 61.4 definitions 13.8, 60.1, B60.4 7, D60.4D60.7, X2.1, X14.2 implementing 32.1, 65 , A65.4, B65.4, C65.4, D65.4, E65.3, F65.3 Key Dates affec affected ted by 60.1(4 60.1(4), ), 61.3, 62.2, A65.4, B60.5, B65.4, C65.4, D60.5, D65.4 notifying 61 , X2.1 payment to Subcontractor D11.2(25), C11.2(25),
termination 90.1, 90.5, C93.4, D93.5 changed Completi Completion on90.3, Date X7.2 changed decision(s) 60.1(8), 61.13 change(s) in Activity Schedule A54.2, A63.12, C54.2, C63.12 change(s) change( s) in forecast Prices, Completion Completion Date and Key Dates due to compensation events E65.3, F65.3 change(s) in the law X2 change(s) of Prices, Completion Date and Key Dates due to compens compensation ation events A65.4, B65.4, C65.4, D65.4 change(s) of Prices due to compensation events 62.2, 63.1, A63.12, B60.6, B63.13, C63.11, D60.6, D63.13 change(s) change( s) in Works Infor Information mation 14.3, 18.1, 44.1, 44.2, 60.1(1), 63.89 civil commotion/war risks 80.1 claims
E11.2(25), F11.2(26) performance suspension Y2.4 Prices Price s affec affected ted by 62.2, 63.1, A63.10, A65.4, B60.6, B63.10, B65.4, C65.4, D60.4, D60.6, D63.13, D65.4, X2.1 Prices not affected by 61.4 Project Manager ’s ’s assessments 64 , A63.10, A65.4, B63.10, C63.15, D63.15, E63.15 quotations 61.4, 61.5, 62 , 64.1, 64.34, 65.1, A11.2(22), B11.2(22), C11.2(25), D11.2(25), E11.2(25), F11.2(26), X2.1 completed activities A11.2(27) completed work, definition B11.2(28) Completion 30 acceleration of 36.1 bonus paid if early X6.1 certification of 30.2, 35.2 and compensation compensation events 61.4, B60.5, D60.5
bank bonds X13.1, X14.2 bankruptcy 91.1 base date X1.1(a), X1.3 Base Date Index X1.1(a) bill of quan quantities tities B11.2(21), D11.2(21) Bill of Quantities B11.2(21)(28)(31), B55.1, B60.47, B63.13, D11.2(21)(31)(33), D55.1, D60.47, D63.13 binding decisions, Adjudicator W1.3(10), W1.3(10), W2.3(11) bodily injury 84.2 bond(s) 91.2, X13.1, X14.2 bonus for early Completion Completion X6 boundaries of the site 11.2(15) breach of contract 60.1(18) breach of statutory duty 80.1
Employer ’s ’s risk 80.1
www.neccontract.com
decision on date 30.2
# copyright
nec 2013 79
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Completion (continued) definition 11.2(2) early warning of possible delay 16.1 Key Date 16.1 and programme 31.2, 32.2 section of the works X5.1 and take over of works works 35.12, 35.3, 60.1(15), X16.1, X16.2
terms identified 11.1 third party rights Y3.1 time allowances 13.4, 31.1 weather data/weather measurement 60.1(13) Contract Date 11.2(4), B60.4, D60.4, X2.1, X4.1, X13.1, X14.2 Accepted Programme 60.1(19) compensation events 60.1(12)(19)
works 32.2, 50.1, 60.1(13), 92.1, 93.2, whole of works C20.4, C53.3, D20.4, D53.7, E20.4, F20.4, X1.2, X16.1 work necessary 11.2(2)(13) Completion Comple tion Date (completion date) accelerated programme 36.1, A36.3, B36.3, C36.3, D36.3, E36.4, F36.4 change to later date X7.2 and compensation events 60.1(13)(15), 61.4, 62.2, 63.3, A65.4, B65.4, C65.4, D65.4, E65.3, F65.3 definition 11.2(3) if Defect(s) accepted 44.2 notification notific ation of compen compensation sation events 61.3 Price Adjustment Factor calculation X1.2 in programme (first/revised) 31.2, 36.1, A36.3, B36.3, C36.3, D36.3 rights to change 63.4 section of the works X5.1 and take over of works works 35.12, 60.1(15) and weather measurement 60.1(13) work to be done by 11.2(2), 30.1 Condition 11.2(9), 25.3, 30.3, 31.2, 63.3, 63.9, B60.5, D60.5 conditions, identified and defined terms 11.2(9) conditions of contract identified and defined terms 11.1 for Subcontract 26.3
prevention 19.1 termination 91.7 Contract Contra ct Date, Proje Project ct Bank Accoun Accountt Y1.2 Contractor
conditions of conditions of contract contract Z1.1 11.1 currencies curren cies for payment X3.1, X3.2 delay damages X7.1 documents referred to in 11.2(16)(19) early Completion Completion bonus X6.1 Employer ’s ’s risks 80.1 forecasts of Defined Cost C20.4, D20.4, E20.4, F20.4 insurance 84.1, 87.2 low performance damages X17.1 named key person 24.1 payment 51.2, X14.1, X14.3 performance bond X13.1 performance level X17.1 price adjustment adjustment for inflation X1.1(c), X1.3 programme 11.2(1), 31.1, 50.3 start-to-Completion interval 32.2 for subcontract C26.4, D26.4, E26.4, F26.4
acceleration 36.1, 36.2 acceptance of communication/proposal/submission 13.4, 13.8, 14.1, 15.1, 21.2, 87.2 access 27.2, 43.4 access and use of Site 33.1 accounts and records C11.2(25), C52.2 3, D11.2(25), D52.23, E11.2(25), E52.2, E52.3, F11.2(26), F52.2, F52.3 actions 10.1 Activity Schedule A31.4, A54.2, C31.4, C54.2 adding to working areas 15.1 adjudication W1.3(12)(4), W2.3(3)(7) advanced advance d payment X14.1, X14.3 advice to Project Manager C20.3, C20.3, D20.3, E20.3, F20.3 and ambiguities/inconsistencies 17.1 amount due to be paid to 50.2, 50.4, 51.1 assessment of compensation events 62.2, 64.1, A63.14, B63.13, C63.14, C63.15, D63.13, D63.15, E63.14, E63.15, F63.14 Bill of Quantities B11.2(28), B63.13, D63.13 certificates certi ficates issued to 13.6 co-operation 10.1, 25.13 compensation events 60.1(1)(8)(10)(12)(19), 60.2, 60.3, 61.16, F20.5 costs 52.1, C40.7, D40.7 decisions communicated to 30.2, 50.1, 60.1(8) default(s) 91.2, 91.3, 91.6 Defect(s) 11.2(5), 42.2 Defect(s) acceptance/non-correction 44.1, 44.2 Defect(s) correction 11.2(2)(6), 43.1 2, 43.4, 2, C11.2(25), D11.2(25), E11.2(25) delay45.1 damages X7.1 delivery of Plant and Materials 41.1, 93.1 early Completion bonus X6.1 early warning 16.1, 16.2, 16.4, 61.5, 63.5 Equipment 11.2(7), 23.1, 31.2, 92.2 facilities and services provided/paid for by 40.2 fault 61.1, 61.4, C11.2(25), D11.2(25), E11.2(25), F11.2(26) health and safety 27.4 illegal/impossible requirements 18.1 implementing compensation events 32.1, 65.1, E65.3, F65.3 indemnity 83.1 instruction(s) 14.3, 24.2, 27.3, 34.1, 36.1, 60.1(10), 61.2, 61.46, 62.1, 62.34, 82.1, 87.1, 91.6, C26.4, D26.4, E26.4, F26.4, X2.1 insurance 84.12, 85.1, 85.34, 86.1, 87.13
works 35.1 take over of works
Key Date 14.3, 30.3
conditions of contract additional Z1.1
interpretation 12.3 and sectional Completion X5.1 Contract Data/contract data addresses for communications 13.2 Adjudicator identified identified W1.2(3), W2.2(3)
80
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Index leaving Site/Working Areas 92.2 liabilities 14.1, 61.4, X15.1 liability limitation X18.15 low-performance damages X17.1 management responsibility F20.2 marking of Equipment, Plant and Materials 71.1 method of working 35.3, A54.2, C54.2 non-corrected Defects 45.12
part submission 21.3 submission to Project Manager 21.2 21.2 use by Employer 22.1 22.1 and Works Information 21.1, 21.2, 60.1(1) Contractor ’s ’s employees 24.1 insurance 84.1 removing 24.2 Contractor ’s ’s share C50.6, C53, C53.1C53.4, C93.4,
notification of compens notification compensation ation events 61.16, X2.1 notified of delegate for Project Manager /Supervisor 14.2 notified notifie d of repla replacement cement for Project Manager / Supervisor 14.4 14.4 objects of value/historical-interest 73.1 obligations 91.2 parent company guarantee X4.1 as Party to contract 11.2(11) payment(s) 40.6, 45.12, 51.1, 86.1, C50.6, C52.2, D50.6, D52.2, E50.7, E52.2, F50.7, F52.2, X3.1, X3.2 performance bond X13.1 period for reply 13.3 13.35, 32.2 physical conditions 60.1(12), 60.2, 60.3 Plant and Materials 27.2, 41.1, 80.1, 92.2, 93.1 prevention 19.1 programme (first/revised) 11.2(1), 31.13, 32.12, 50.3, 62.2, 64.1, 64.2 Project Bank Account Y(UK)1 proposed instruction/changed-decision 61.2 quotations 36.1, 36.2, 44.2, 62.1 5, 64.1 reaction react ion to compensation compensation event 63.7 repairs/replacements 82.1 reply to communic communication ation 13.35, 31.3, 32.2, 60.1(6), 62.36 responsibilities 14.1, 20 7, C20.3, C20.4, C26.4, D20.34, D26.4, E20.34, E26.4, F20.24, F26.4 Risk Register revision 16.4 risks 63.6, 81.1, 84.2, 85.4 searching (for Defects) 42.1 starting/stopping work 30.1, 34.1, 91.6 subcontract contract data C26.4, D26.4, E26.4, F26.4
C93.6, D50.6, D53, D93.56 Contractor ’s ’s share percentage C53.1, D53.5 Contracts (Rights of Third Parties) Contracts Parties) Act (1999) Y(UK)3 Core Group X12.2(3-5) composition X12.1(3) correcting assessment of amount due 50.5, 51.3, X1.2 assumptions about compensation events 60.1(17), 61.6 Bill of Quantities mistakes B60.6, D60.6 Defects 11.2(2), 32.1, 40.4, 43 , 45.12, C11.2(25), D11.2(25), E11.2(25) cost components data A11.2(22 A11.2(22), ), C11.2(2 C11.2(23), 3), C63.15, D11.2(23), D11.2(2 3), D63.15, E11.2(27), E63.15 costs additional costs 25.3 Contractor 52.1, 52.1, C40.7, D40.7 Defect(s) correction 45.12 due to Adjudicator ’s/ ’s/tribunal’s decision 51.3 Employer ’s ’s risk 80.1 indemnity against 83.1, 83.2 insurance 86.1, 87.3 test/inspection repeat 40.6 see also excess costs creditors, arrangement made with 91.1 currency curre ncy of this contract 51.1, C50.6, D50.6, E50.7, F50.7, X3.1, X3.2 damage(s) delay X7.1, X7.2 Employer ’s ’s risk 80.1 insurance against 84.1 low performance X17.1 repair by Contractor 82.1 82.1 death insurance 84.1
subcontracted work C20.3, D20.3, E20.3, F20.2, F20.3 Subcontractor 11.2(17), 26.13 take over of works works 35.3, 43.4, 80.1 termination 80.1, 90.2, 90.4 5, 91.2, 91.4, 91.67 tests and inspections 40.2, 40.3, 40.5, 40.6, 41.1, C40.7, D40.7 title to objects and materials within Site 73.1, 73.2 title to Plant and Materials 70.1, 70.2 Works Information 11.2(19), 14.3, 63.8 9 Contractor ’s ’s design 21 acceptance 21.2, 21.3 approvall from Others 27.1 approva and Defec Defects ts 11.2(5 11.2(5)) and Equipment design 23.1 liability of Contractor Contractor 14.1 14.1 limitation of Contractor Contractor ’s ’s liability X15.1 management manageme nt by Contractor F20.2 F20.2
www.neccontract.com
decision(s) Adjudicator or or tribunal 51.3 assessment date 50.1 and compens compensation ation events 60.1(8), 61.1, 61.46 date of Complet Completion ion 30.2 Project Manager 30.2, 30.2, 50.1, 60.1(8), 61.1 2, 61.46, 63.5, 64.1, C11.2(25), D11.2(25), E11.2(25), F11.2(26) risk reduction meeting 16.4 default(s) Contractor ’s ’s 91.2, 91.3, 91.6 Employer ’s ’s 91.6 defect correction period 40.5, 43.24, 45.1 Defect(s) accepting 44 , 60.1(1)(9) Contractor ’s ’s compensation X15.2 Contractor ’s ’s liability 11.2(5), X15.1, X18.3 correcting 11.2(2)(6), 32.1, 40.4, 43 , 45.2, C11.2(25), D11.2(25), E11.2(25)
# copyright
nec 2013 81
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract Defect(s) (continued) correction after Completion C11.2(23) defect correction period 40.5, 43.24, 45.1 definition 11.2(5) liability limitation X18.3 loss/damage/wear due to 80.1 low perfo performance rmance damages X17.1 notifying 11.2(6), 42.2, 43.12 and priced contract(s) A11.2(27), B11.2(28) searching (for) 42.1, 60.1(10) and tests/inspections 40.4, 40.6 uncorrected 45 , 60.1(9 60.1(9)) Defects Certificate 11.2(6), 43.3 and assessment of amount due 50.1 and Contractor ’s ’s risks 81.1 2 and Employer ’s ’s risks 80.1 and insurance cover 84.2 Key Performance Indicators X20.2 liability limitation X18.3 low perfo performance rmance damages X17.1 and retent retention ion X16.2 defects date 11.2(6), 40.5 and compens compensation ation events 61.7 searching/notifying Defects 42.12 testing 42.12 Defined Cost 52 , C11.2(29), D11.2(29), E11.2(29)(32), F11.2(29)(32) in amount due on termination 93.1, 93.2 and compensation events 61.4, 63.12, 63.7, A63.10, B60.4, B63.10, B63.13, C63.11, D60.4, D63.11, X1.3, X2.1 definition(s) A11.2(22), B11.2(22), C11.2(23), D11.2(23), E11.2(23), F11.2(24) and Fee calculation 11.2(8), 63.1, C11.2(29), D11.2(29), E11.2(29) forecast C20.4, D20.4, E20.4, F20.4 payment on termina termination tion D93.5 payments made by Contractor C50.6, C50.6, C52.2, C52.3, D50.6, D52.2, D52.3, E50.7, E52.2, E52.3, F50.7, F52.2, F52.3 defined terms 11 , X1.1 Delay/delay and compensation events 62.2, 63.3, B60.5, D60.5
discounts, deduction from prices 52.1 dismantling (during searching) 42.1 dispute resolution unless United Kingdom Housing Grants, Construction and Regeneration Act (1996) as amended by the Local Democracy, Economic Development Develo pment and Constr Constructio uction n Act 2009 applies W1 when United Kingdom Housing Grants, Construction and Regeneration Act (1996) as amended by the Local Democracy, Economic Development and Construction Construction Act 2009 applie applies s W2 early Completion bonus X6.1 early warning 16 effects 16.1 Key Date 16.1 responsibility 16.1, 61.5, 63.5, C11.2(25), D11.2(25), E11.2(25), F11.2(26) Risk Register 16.1, 16.34 Effect of payment, Project Bank Account Y1.12 employees, of Adjudicator Adjudicator W1.2(5), W1.2(5), W2.2(5) Employer
access 43.4 access and use of Site 33.1, 60.1(2) actions 10.1 adjudication W1.3(1) advanced payment by X14.13 amount due to be paid by 50.2, 51.1 breach of contr contract act by 60.1(1 60.1(18) 8) certificates certi ficates issued to 13.6 co-operation 25.2, 25.3 compensation events 60.1(1-3)(5)(14)(16)(18) Completion of works works on termination 93.1, 93.2 Contractor ’s ’s design 22.1 Contractor ’s ’s parent company guarantee X4.1 dates 31.2, 33.1, 60.1(2)(3)(5) default 91.6 Defects Certificate 43.3 facilities and services provided by 40.2, 60.1(16) fault 80.1 hindered hinder ed by Contractor 91.3 91.3 indemnity 83.1 insurance 85.4, 86.1, 87 as Party to84.1, contract 11.2(11) payments by 51.1 payments to C11.2(23), D11.2(23), E11.2(23), F11.2(23) performance bond X13.1 Plant and Materials 31.2, 80.1 Project Proje ct Bank Account Y1.1(3), Y1.1(3), Y1.6, Y1.8, Y1.9, Y1.11, Y1.13 programme 31.2, 60.1(5) repayment of delay damages X7.1 replacement of Project Project Manager /Supervisor 14.4 14.4 responsibilities 83.2, 87.2 rights to change 63.4 risks 60.1(14), 80 , 81.1, 83.2, 85.4 take over of works works 35.13, 43.4, 80.1, X6.1, X7.1, X16.1, X16.2 termination 80.1, 90.2, 91.2 3, 91.67, 92.12,
damages X7.1, early warning toX7.2 be given 16.1 plans to deal with 32.1 and priced contract(s) A11.2(27), B11.2(28) and tests/inspections 40.5, 60.1(11) delegation by Project Manager /Supervisor 14.2 14.2 delivery, testing and inspection before 41 demolition 22.1, 73.2 design Contractor ’s ’s 11.2(5), 21 , 22.1, 23.1, 27.1 Employer ’s ’s 80.1 of Equipme Equipment nt 23 of works works C20.3, D20.3, E20.3, F20.3 see also Contractor ’s ’s design direct fee percentage 11.2(8), 93.2 Disallowed Cost C11.2(23), D11.2(23), E11.2(23), F11.2(24) definition(s) C11.2(25), D11.2(25), E11.2(25), F11.2(26)
82
# copyright
93.12
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Index tests and inspections 40.2, 40.6, 60.1(16), C40.7, D40.7 title to Equipment, Plant and Materials 93.1 title to Plant and Materials 70 , 93.1 use of works works by 11.2(2), 35.3 working with see co-operation Works Information 22.1, 60.1(1)(5)(16) Employer ’s ’s design 80.1
Housing Grants, Construction and Regeneration Act (1996) as amended by the Local Democracy, Economic Economi c Develo Development pment and Constr Constructio uction n Act 2009 W1 , W2 , Y(UK)2
Equipment definition 11.2(7) design of 23 23 left on Site 72.1, 80.1 loss or damage 84.2 loss, damage or wear 80.1 marking of 70.1 70.1,, 71 and programme 31.2 rates in Contract Data X1.3 removal of 72 72 , 92.2, 93.2 termination 92.2 title 70.1, 70.2, 92.2 use by Employer 92.2 92.2 see also Plant and Materi Materials als errors, Adjudicator W1.3(11) W1.3(11) excavation materials 73.2 excess costs, Contractor ’s ’s share C53.2 exchange rates C50.6, D50.6, E50.7, F50.7, X3.1 experienced contractor and compensation events 60.1(12), 60.2, 61.5, 63.5 and physical conditions on Site 60.1(12), 60.1(12), 60.2 and prevention 19.1, 60.1(19), 91.7 extension of time for decision/quotation/reply 13.5, 62.5
B65.4, C65.4, D65.4, E65.3, F65.3 impossible requirements 18 Incentive Schedule X20.1, X20.3 5 incentive schedule X20.1 incentives, Partnering X12.4 inconsistencies 17 , 60.3, 63.8, B60.6, D60.6 indemnity 83 information in Activity Schedule A54.1, C54.1 in Bill of Quantities B55.1, D55.1 later recorded 65.2 in programme 31.2, 31.3, 50.3 provided to Others 25.1 publicly available 60.2 see also Site Information; Works Information injury insurance 84.1 inspection(s) 40 , 60.1(10)(11) before delivery 41 Contractor ’s ’s cost C40.7, D40.7 instalment insta lment repayment of advanc advanced ed payment X14.3 instruction(s) compensation events resulting 60.1(1)(4)(7), 61.1 to Contractor 27.3 27.3 form of communi communication cation 13.1 insurance 87.1 objects of value/interest 60.1(7) quotation(s) quotat ion(s) to be submitted 36.1, 61.12, 61.56, 62.1, 62.34, 64.1, X2.1 to remove Contractor ’s ’s employee 24.2 on resolution of ambiguities and inconsistencies 17.1 to search (for Defects) 42.1 to stop/not start work 34 , 60.1(4), 91.6 and termination 91.6, 92.2 that change Key Date 14.3
facilities and services for tests/inspections 40.2, 42.1, 60.1(16) see also services failure to pay in time, actions to be taken 91.4 fault of Contractor Contractor 61.1, 61.1, 61.4, C11.2(25), D11.2(25), E11.2(25), F11.2(26) fault of Employer Employer or or his design 80.1 Fee C11.2(29), D11.2(29), E11.2(29)(32), F11.2(29,32) calculation(s) 11.2(8), 63.1, 93.2, C50.6, D50.6, E50.7, F50.7 see also payment(s) fee percentage percentage see direct fee percentage percentage
that 60.1(1), change Works 14.3, 18.1, 44.2, 63.8Information 9 insurance certificates 85.1, 86.1, 87.13 cover 84 by Employer 84.1, 84.1, 85.4, 86.1, 87 policies 85 , 86.1, 87.13 signatories 85.1 Insurance Table 84.2 insurer(s) 85.2, 85.4, X13.1 bonds X13.1, X14.2 insurrection insurr ection,, risks due to 80.1 interest assessment of 51.2, 51.3 compound calculation 51.4 on late payment 51.2 and payment certificate(s) 51.3 repaid delay damages X7.1
float, provision provision in progra programme mme 31.2 forecasts 61.6, 63.1, 65.2, 93.2, C20.4, C53.3, D20.4, D53.7, E20.4, E65.3, F20.4, F65.3 form of communi communication cations s 13.1 fraud, and insura insurance nce 85.2 grouping of activities A11.2(27) guarantee(s) 91.2, X4.1 health and safety Contractor 27.4 27.4 regulation(s) 91.3 requirements 31.2 Works Information 27.4 historical-interest objects found within Site 60.1(7),
interest rate 51.4
73.1
www.neccontract.com
identified terms 11 illegal requirements 18 implementing compensation events 32.1, 65 , A65.4,
# copyright
nec 2013 83
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract interpretation compensation event 63.8 conditions of contract 12.3 legal 12 Joining Deed Project Bank Account Y1.1(2), Y1.1(6), Y1.6 Key Date 30 acceleration 36.1, A36.3, C36.3, D36.3 assessment of compensation events 63.89 and compensation events 60.1(4), 61.3, 62.2, A65.4, B60.5, B65.4, C65.4, D60.5, D65.4 Condition 25.3 Contractor 14.3, 14.3, 30.3 definition 11.2(9) early warning 16.1 notification of compensation events 61.3, 61.4 and programme 31.2 Project Manager 14.3, 14.3, 60.1(4) rights to change 63.4 Subcontractor failing to meet C11.2(23), D11.2(23), E11.2(23), F11.2(23) Key Performance Indicators X20 aspect of perfor performance mance X20.1 performance reports X20.2 key person 24.1 language of communications 13.1 language of this contract 13.1 late payment(s) 51.23, X14.2 later recorded information 65.2 Latest Index X1.1(b) law changes in X2 , X2.1 and Defect(s) 11.2(5) interpretation 12 national legislation Y release of Party from contract 91.5 tax(es) 50.2 tests and inspec inspections tions 40.1 see also Acts law of the contract 12.2 legal rights,national interference with 80.1 legislation, Y liability Contractor ’s ’s design 14.1, X15.1 and insurance 84.2 limitation X18 reduction 83.2 liquidator for company/partnership 91.1 loss risks 80.1, 84.1 low performance damages X17 see also performance impairment lump sum(s) A11.2(30), A63.14, B11.2(28), B63.13, C11.2(30), C63.14, C93.4, D11.2(31), D63.13, E63.14, F63.14, marking of Equipme Equipment, nt, Plant and Materials 71 materials access to 27.2
84
# copyright
dates when needed 31.2 testing/inspection 40.2, 41.1, 42.1, 60.1(16) title to 73.2 see also Plant and Materi Materials als method of measurement B60.6, D60.6 method of worki working ng 35.3, A54.2, C54.2 military power, risks due to 80.1 mistake(s) assessment of amount due 51.3 Bill of Quantities B60.6, D60.6 multiple currencies X3 named person 24.1 named suppliers
Project Bank Account Y1.1(2 Project Y1.1(2), ), Y1.13 Named Suppliers Project Bank Account, Y1.1(1), Y1.1(2), Y1.1(3), Y1.5, Y1.6, Y1.9, Y1.10 Y1.10,, Y1.13 national legislation Y NEC Adjudicator’s Contract W1.2(1), W2.2(1) NEC contract 26.3, C26.4, D26.4, E26.4, F26.4 negligence 80.1 nominating body , Adjudicator W1.2(3), W1.2(3), W2.2(3) notification acceptance of quotation(s) 62.3, 65.1 adjudication W1.3(12)(8-9), W2.3(12)(89) ambiguities/inconsistencies 17.1 assessment of compensation event 62.3, 64.3, 65.1 communication of 13.1, 13.7 compensation events and assumptions 60.1(17), 61 Contractor ’s ’s default 91.2, 91.3 Defects 11.2(6), 42.2, 43.12 delegate for Project Manager /Supervisor 14.2 14.2
illegal/impossible requirements 18.1 implementing compensation events A65.4, B65.4, C65.4, D65.4, E65.3, F65.3 Project Manager ’s ’s assessment 64.3, 65.1 Project Manager ’s ’s decision(s) 63.5, 64.1 proposed instruction/changed-decision 61.2, 62.3 replacement of Project Project Manager /Supervisor 14.4 14.4 termination 90.1 tests and inspections 40.3, 41.1 notified Defects, correction 32.1, 45.2 objects of value or histo objects historical rical interest interest 60.1(7 60.1(7), ), 73.1 observing tests 40.3 open market prices 52.1 operations operat ions (in program programme) me) 31.2, 32.1 Others (other people) approval by 27.1 at risk reduct reduction ion meeting 16.2 co-operation with 25.1 Defect(s) correction by 45.2 definition 11.2(10) hindered by Contractor 91.3 91.3 Plant and Materials supplied by 80.1 and programme 31.2, 60.1(5) working with see co-operation and Works Information 60.1(5) Own Contract, definition X12.1(2)
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Index parent company guarantee X4 Parties/Party Adjudicator ’s ’s communications W1.3(6), W2.3(6) Adjudicator ’s ’s instructions W1.3(5), W2.3(4) agreement 12.4 and assessment date 50.1 to contract 11.2(11) indemnity liability 83.1, 83.2 insurance 84.2, 85.3 prevention 19.1 to subcontract 26.3 and termination 90.1, 91.1, 91.5 third party rights Y3.1 tribunal reviews W1.4(14), W2.4(13)(5) Partnering X12 actions X12.2 change of Partnering information X12.3(6) Core Group X12.2(3-5) defined terms X12.1 early warning X12.3(3) incentives X12.4 Key Performance Indicators X12.4(12) Own Contract X12.1(2) Partnering Information X12.1(4), X12.3(1) representatives X12.2(2) subcontracting X12.3(9) timetable X12.3(7) payment(s) 51 advanced 93.1, X14.13 certified 50.5, 51.13, 90.4 conditional on success of test or inspection 40.5 Contractor 40.6, 40.6, 45.2, 51.1, 86.1, C50.6, C52.2, D50.6, D52.2, E50.7, E52.2, F50.7, F52.2, X3.12 dates Y2.2 Employer ’s ’s insurance 87.3 Housing Grants, Construction and Regeneration Act (1996) as amended by the Local Democracy, Economic Economi c Develo Development pment and Constr Construction uction Act 2009 Y2.23 interest 51.4 late 51.23, X14.2 and marking of Equipment, Plant and Materials 71.1
performance reports X20.2 performance suspension Y2.4 period perio d for reply 13.3, 13.3, 13.4, 32.2, 36.2 extension agreed 13.5 personal injury 84.1 see also insurance physical conditions of Site 60.1(12), 60.2, 60.3 Plant and Materials 11.2(12)(17) access to 27.2, 60.1(2) dates when needed 31.2 loss of or damage to 80.1, 82.1, 84.1 not used to Provide the Works C11.2(25), D11.2(25), E11.2(25) removal of 92.2 replacement 82.1, 84.1 and termination 92.1, 93.1 testing/inspection before delivery 41.1 title 70.1, 70.2, 92.1, 93.1 wastage C11.2(25), D11.2(25), E11.2(25) see also Equipment prevention 19 Price Adjustment Factor(s) X1 assessment of compensation events X1.3 calculation of X1.2 definition X1.1(c) price adjustment adjustment use X1.4, X1.5 Price for Work Done to Date adjustment for inflation X1.4, X1.5 and assessment of amount due 50.2, 50.3, 93.2, C93.4, D93.5 and assessment of Contractor Contractor ’s ’s share C53.14, D53.58 definition(s) A11.2(27), B11.2(28), C11.2(29), D11.2(29), E11.2(29), F11.2(29) and retention X16.1 Prices/prices/prices and acceleration 36.1, A36.3, B36.3, C36.3, D36.3 and Activity Schedule A11.2(20)(27), A54.3, A63.12, C11.2(30), C54.3, C63.12 and Bill of Quantities B11.2(31), B60.4, B60.6, B63.13, D11.2(31), D60.4, D60.6, D63.13 changes to 63.12 and compensation compensation events 61.4, 62.2, 63.12,
not made 91.4ion Y2.3 notice of intent intention Projectt Bank Account Y1.7, Y1.8, Y1.9, Y1.10, Projec Y1.11, Y1.12 taxes 50.2 on termin termination ation 93.1, 93.2, A93.3 A93.3,, C93.4 C93.4,, C93.6 C93.6,, D93.56 time to be made 51.2, X14.2 withholding Y2.3 payment certificate 50.5, 51.1, 51.3, 91.4 payment clauses 50 people 24 rates in Contract Data X1.3 see also employees performance, see also Key Performance Indicators performance bond X13 , X13.1 performance impairment early warning of possi possibility bility 16.1
A63.10, B60.6, B63.10, A63.12, B63.13, A65.4, B65.4, B60.4, C63.12, C63.14, C65.4, D60.4, D60.6, D63.13, D65.4, E63.14, E65.3, F63.14, F65.3, X2.1 competitively tendered/open market 52.1 Contractor ’s ’s share C53.1C53.4, D53.5 definition A11.2(30), B11.2(31), C11.2(30), D11.2(31), E11.2(32), F11.2(32) early warning of possib possible le increase 16.1 if Defect(s) uncorrected/accepted 44.2 notification of compensation events 61.3 rights to change 63.4 and termination 93.2, C93.4, D93.5 procedures, termination 90.2, 90.3, 92 proceedings Employer ’s ’s risk 80.1 indemnity against 83.1, 83.2 procurement procedure C11.2(25), D11.2(25),
see also low performance
www.neccontract.com
E11.2(25), F11.2(26)
# copyright
nec 2013 85
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract programme 11.2(1), 31 , 50.3, 62.2, 64.1 accelerated 36.1, A36.3, B36.3, C36.3, D36.3, E36.4, F36.4 dates to be shown 31.2, 32.1, A31.4, C31.4 revised 32 , 36.1, 62.2, 64.2, A36.3, B36.3, C36.3, D36.3, E36.4, F36.4 Project Bank Account Y(UK)1 Project Manager
acceleration 36.1, A36.3, B36.3, C36.3, D36.3, E36.4, F36.4 acceptance of communication/proposal/submission 13.4, 14.1, 15.1, 21.2, 31.3, 85.1 acceptance accept ance of contra contract ct data for subcontract subcontract C26.4 C26.4,, D26.4, E26.4, F26.4 acceptance of quotation 44.2, 60.1(9), 62.3, 65.1, A36.3, B36.3, C36.3, D36.3, E36.4, F36.4 access 27.2 Activity Schedule A54.2, C54.2 addition additi on to working areas 15.1 Adjudicator ’s ’s reviews/revisions W1.3(5), W2.3(4) advanced advance d payment bond X14.2 and ambiguities/inconsistencies 17.1 assessment of amount due 50.1, 50.4, 50.5 assessment of compensation events 61.6, 63.9, 64, A63.10, B63.10, B63.13, C63.15, D63.13, D63.15, E63.15 assessment of Contractor Contractor ’s ’s share C53.1, C53.34, C93.4, C93.6, D53.5, D53.7 8, D93.56 assessment asses sment date decid decided ed by 50.1 assessment of Defect(s) correction cost 45.2 assessment of test/inspection cost 40.6 assumptions about compensation events 60.1(17), 61.6 certificates 13.6, 30.2, 50.5, 51.13, 60.1(15), 82.1, 90.1, 90.34, C93.4, D93.5 co-operation 10.1, 16.3 compensation events 60.1(1)(4)(6)(7)(8)(9)(15)(17), 61.16, A63.10, B63.10, C63.15, D63.15, E63.15, F20.5 Completion 30.2 Contractor ’s ’s advice C20. C20.3, 3, D20.3 D20.3,, E20.3, F20.3 Contractor ’s s design default 11.2(5), 91.2, 91.3 Contractor ’s ’’s 21.2 Contractor ’s ’s employees 24.1, 24.2
implementing compensation events 65.1, E65.3, F65.3 inspection of Contractor Contractor ’s ’s accounts and records C52.3, D52.3, E52.3, F52.3 instruction(s) 14.3, 17.1, 18.1, 24.2, 27.3, 34.1, 44.2, 60.1(1)(4)(7), 61.12, 61.4, 62.1, 62.34, 82.1, 87.1, 91.6, C26.4, D26.4, E26.4, F26.4, X2.1 insurance 85.1, 87.1 interest on payments 51.3 Key Date 14.3, 60.1(4) Key Performance Indicators X20.3 moving of Equipment, Plant and Materials 70.2, 72.1 notification of compensation events 61.1 6, X2.1 notification of Contractor Contractor ’s ’s default 91.2, 91.3 notification of implementing compensation events E65.3, F65.3 objects of value/historical-interest 60.1(7), 73.1 performance bond X13.1 prevention 19.1 programme 11.2(1), 31.1, 31.3, 32.2, 50.3 Project Bank Account Y1.4, Y1.6, Y1.7, Y1.9, Y1.14 quotations for acceleration 36.12, 60.1(9), A36.3, B36.3, C36.3, D36.3 quotations for compensation events 62.1, 62.35 replacement of 14.4 reply to communic communication ation 13.35, 60.1( 60.1(6), 6), 62.3, 62.56 requestt to remove resou reques resources rces from Worki Working ng Areas C11.2(25), D11.2(25), E11.2(25) Risk Register revision 16.4 start/stop start /stop of work 34.1, 60.1(4), 91.6 subcontract conditions 26.3 subcontracting C26.4 Subcontractor acceptance 26.2, 91.2 take over of works works 35.3, 43.4, 60.1(15) and termination termination 90.1, 90.3, 90.4, 91.2 tests and inspections C40.7, D40.7 Works Information 14.3, 18.1, 44.2, 60.1(1) property, loss or damage 84.1 proposal(s) acceleration 36.1 to add to Working Areas 15.1
correction of mistak correction mistakes es in Bill of Quantit Quantities ies B60.6, D60.6 date of Completion 30.2 decisions 30.2, 50.1, 60.1(8), 61.1 2, 61.46, 63.5, 64.1, C11.2(25), D11.2(25), E11.2(25), F11.2(26) Defect(s) acceptance/non-correction 44.1, 44.2 delegation 14.2 Disallowed Cost decision C11.2(25), D11.2(25), E11.2(25), F11.2(26) duties required 10.1, 14 early warning 16.1, 16.2, 16.4, 61.5, 63.5 Equipmentt design 23.1 Equipmen forecasts of Defined Cost C20.4, D20.4, E20.4, F20.4
Defect(s) acceptance/non-correction 44.1 form of communi communication cation 13.1 risk reduction meeting 16.3, 16.4 proposed propose d instru instruction ction or changed decision decision 61.2, 62.3 Provide the Works 20 and addition to Working Areas 15.1 Contractor ’s ’s responsibilities 11.2(7), 14.1, 20.1, 23.1, 26.3, C20.34, C26.4, D20.34, D26.4, E20.34, E26.4, F20.35, F26.4 and Equipment 11.2(7), 23.1 meaning of term 11.2(13) Plant and Materi Materials als not used C11.2(25), C11.2(25), D11.2(25), E11.2(25) and programme 31.2 resources not used C11.2(25), D11.2(25), E11.2(25) and Works Information 11.2(19), 20.1, C11.2(25), D11.2(25), E11.2(25)
illegal/impossible requirements 18.1
publicly available information 60.2
86
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Index quantities B11.2(28)(31), B60.47, D11.2(31), D60.47 see also bill of quantities; Bill of Quantities quotations for acceleration 36.12, 60.1(9), A36.3, B36.3, C36.3, D36.3, E36.4, F36.4 acceptance of 36.1, 44.2, 60.1(9), 62.3, 65.1, A36.3, B36.3, C36.3, D36.3 for compensation events 61.4, 61.5, 62 , 64.1, 64.34, 65.1, A11.2(22), C11.2(25), D11.2(25), E11.2(25), F11.2(26), X2.1 if Defect(s) accepted 44.2, 60.1(9) for proposed instruction/changed-decision 61.2 revised 62.3, 62.4, 64.1
retention free amount X16.1 retention percentage X16.1 reviews, tribunal W1.4(16), W2.4(15)
revised Activity Schedule A54.2, A54.3, C54.2, C54.3 revised programme 32.12, 36.1, 64.2, A36.3, B36.3, C36.3, D36.3, E36.4, F36.4 revised quotation 62.3, 62.4, 64.1 revolution, revol ution, risks due to 80.1 Rights of Third Parties (Contracts) (Contracts) Act Y(UK)3 riot risks 80.1 risk allowances 63.6 risk reduction meeting purpose 16.3 records 16.4 who attends 16.2 Risk Register definition 11.2(14) early warning 16.1, 16.34 Project Manager revision revision 16.4 records revision 16.4 risks Contractor ’s ’s 63.6, 81 , 83.2, 84.2, 85.4 Employer ’s ’s 60.1(14), 80 , 81.1, 83.2, 85.4
radioactive contamination 80.1 rates in assessing compensation events A63.14, B63.13, D63.13 in Bill of Quantities B11.2(28)(31), B60.4, D11.2(25,31), D60.4, D63.13 in Contract Data X1.3, X6.1, X7.1 rebates, deduction from prices 52.1 rebellion, risks due to 80.1 receipt of communications 13.1 receiver over assets 91.1 records Contractor ’s ’s C11.2(25), C52.2 3, D11.2(25), D52.23, E11.2(25), E52.23, F11.2(26), F52.23 form of communi communication cation 13.1 risk reduction meeting 16.4 Risk Register revision 16.4 re-covering (during searching) 42.1 re-erecting (during searching) 42.1 referral, adjudication W1.3(13), W2.3(13) removing Contractor ’s ’s employee 24.2 Equipment 72 , 92.2, 93.2 Plant and Materi Materials als 92.2 resources C11.2(25), D11.2(25), E11.2(25) repairs 82 replacement(s)
safety see health and safety samples 40.2, 42.1, 60.1(16) savings, Contractor ’s ’s share C53.2 Schedule of Cost Components C11.2(23), D11.2(23), E11.2(23) Shorter Schedule A11.2(22), B11.2(22), C63.15, D63.15, E63.15 Schedule of Partners X12.1(1) searching for Defects 42.1, 60.1(10) section of the works X5.1 sectional Completion X5 services 11.2(13) see also facilities and services share ranges C53.1, D53.5 Shorter Schedule of Cost Components A11.2(22), B11.2(22), C63.15, D63.15, E63.15 Site access acces s to 31.2, 60.1( 60.1(2) 2) access and use of 33.1
Adjudicator Adjudicator of W1.2(4),24.1 W1.2(4), W2.2(4) Contractor ’s employee ’s Equipment 80.1, 84.1 Plant and Materi Materials als 82.1, 84.1 Project Manager /Supervisor 14.4 14.4 reply form of communi communication cation 13.1 time allowed 13.35, 31.3, 32.2, 36.2, 60.1(6), 62.56 resignation of Adjudicator Adjudicator W1.2(3), W1.2(3), W2.2(3) resources resou rces not used to Provid Provide e the Works C11. C11.2(25), 2(25), D11.2(25), E11.2(25) responsibilities Contractor 14.1, 14.1, 20 7, C20.3, C20.4, C26.4, D20.34, D26.4, E20.34, E26.4, F20.24, F26.4 Contractor ’s ’s 11.2(7), 14.1, 20 , 83.2 Employer ’s ’s 83.2, 87.2
definition 11.2(15) historical-interest/valuable objects found 60.1(7), 73.1 information describing 11.2(16) location X2.1 physical conditions 60.1(12), 60.2, 60.3 removal of Equipment, Plant and Materials 72.1, 92.2 and risks 80.1 starting of work 30.1 termination 92.2 visual inspection 60.2 Site Information 11.2(16), 60.2 and Activity Schedule A54.1, A54.2, C54.1 ambiguities/inconsistencies 60.3 and Bill of Quantities B55.1, D55.1 starting date 31.2, 32.2, 50.1, 81.1, 84.2, 87.1, C20.4, D20.4, E20.4, F20.4 dispute resolution W1.2(1), W2.2(1)
retention 50.3, 93.1, X16
insurance 85.1
#
www.neccontract.com
copyright nec 2013 87
For use on projects associated with UK Shared Business Services Ltd ®
Engineering and Construction Contract start(ing) work 30 instruction( instr uction(s) s) given not to 34.1, 60.1(4), 60.1(4), 91.6 stopping stoppi ng work 34.1, 60.1(4 60.1(4), ), 91.6 strikes, risks due to 80.1 subcontract adjudication W1.3(4), W2.3(3) contract contra ct data C26.4 C26.4,, D26.4 D26.4,, E26.4, F26.4 subcontracted fee percentage 11.2(8) subcontracting 26 , C20.3, C26.4, D20.3, D26.4, E20.3, E26.4, F20.2, F20.3, F26.4 assignment assign ment of benefits 92.2 conditions 26.3 Contractor ’s ’s management responsibility F20.2 Defined Cost A11.2(22), C11.2(23), D11.2(23), E11.2(23), F11.2(26) Subcontractor acceptance by Project Manager 26.2, 26.2, 91.2 appointment appoint ment 26.2, 26.3, 91.2 compensation event assessments C52.2, D11.2(25), D52.2, E11.2(25), E52.2, F11.2(26), F52.2 definition 11.2(17) payments made C11.2(23)(25), D11.2(23)(25), E11.2(23)(25), F11.2(24)(26) submission(s) addition to Working Areas 15.1 communications 13.1, 13.4 Contractor ’s ’s design 21.2 Equipmentt design 23.1 Equipmen forecasts forec asts of total Defined Cost C20.4 C20.4,, D20.4 D20.4,, E20.4, F20.4 insurance policies/certificates 85.1, 86.1, 87.1, 87.3 non-acceptanc non-ac ceptance e of 13.8, 15.1, 21.2, 23.1, 26.2, 26.3 programme (first/revised) 31.2, 32.2, 50.3, 64.1, 64.2, A31.4, C31.4 quotations quotati ons 36.1, 36.2, 44.2, 61.4, 62.1, 62.36, 64.1, X2.1 Subcontractor/subcontract conditions/contract data 26.2, 26.3, C26.4 C26.4,, D26.4 D26.4,, E26.4, F26.4 subrogation rights 85.2 Supervisor
access 27.2 Adjudicator ’s reviews/revisions W1.3(5), W2.3(4) ’s certificates issued by 13.6, 43.3, 50.1 and compensati compensation on events 60.1(6)(8)(10)(11), 60.1(6)(8)(10)(11), 61.1 Defects Defec ts notified by 11.2( 11.2(6), 6), 42.2, 43.1, 43.3 delegation 14.2 duties required 10.1, 14 instructions instr uctions given by 27.3, 61.1 marking of Equipment, Plant and Materials 70.1, 71.1 replacement of 14.4 reply to communication 13.3, 14.1, 60.1(6) searching (for Defects) 42.1, 60.1(10) tests and inspections 40.3, 40.5, 41.1, 60.1(11) suppliers 11.2(10)(17) Project Bank Account Y1.1(2), Y1.6 take over of works works 35 , 43.4, 60.1(15), 80.1, X6.1, X7.1, X16.1, X16.2
#
taxes 52.1 payment 50.2 termination 90 amount due on 90.2, 90.4, 93.1, 93.2, A93.3 certification of 90.1, 90.3, 90.5, C93.4, D93.5 and insurance cover 84.2 loss/damage risks 80.1 payment on 93.1, 93.2, A93.3, C93.4, D93.5 procedures 90.2, 90.3, 92 Project Proje ct Bank Account Y1.14 reasons for 90.2, 91 Termination Table 90.2, 92.2, 93.2 tests/testing 40 before delivery 41 compensation events resulting 60.1(10)(11)(16) Contractor ’s ’s cost C40.7, D40.7 searching/notifying Defects 42.12 third party rights, contr contracts acts Act Y3.1 time, see also Completio Completion; n; Key Date; start(ing) start(ing) work time allowed certification of Completion 30.2 certificatio certi fication n of payment 50.5, 51.1, 90.4 certificatio certi fication n of take over 35.3 compensation events 61.1, 61.3, 61.4, 64.3 4 Defect(s) correction 43.2 extension(s) agreed 13.5, 62.5 6 payment of amount due 51.2, 91.4 programme submission/acceptance 31.1, 31.3, 32.2 Project Manager not not replying 64.4 reply to communic communications ations 13.3, 13.5, 31.3, 32.2, 60.1(6) start/restart of work 91.6 time clauses 30 time risk allowa allowances nces 31.2, 63.6 timings, adjudication W1.3(8)(10-11), W2.3(2)(8)(1112) title 70 Equipment, Plant and Materials 92.1, 92.2 materials from excavation and demolition 73.2 object of value or histor historical ical interest 73.1 Plant and Materials 70 total of the Defined Cost, payment on termination D93.5 Total of the Prices Contractor ’s share D53.58 ’s identified identi fied and defined terms D11.2( D11.2(33) 33) total of the Prices Activity Schedule A54.3, C54.3 adjustment for inflation X1.5 compensation events B60.4, D60.4 Contractor ’s ’s share C53.1, C53.3 early warning of possible increase 16.1 identified identi fied and defined terms 11.2(27) payment on termin termination ation 93.2, C93.4, C93.4 tribunal Adjudicator W1.3(2)(10), W1.3(2)(10), W2.3(11)
arbitration W1.4(5), W2.4(4) costs D11.2(25) decisions 51.3 proceedings C11.2(25), D11.2(25), E11.2(25) reviews W1.4(16), W2.4(15) trust and co-operation 10.1, 26.3, X12.3(1)
88
# copyright
nec 2013
www.neccontract.com
For use on projects associated with UK Shared Business Services Ltd ®
Index Trust Deed Projectt Bank Account Y1.1(5 Projec Y1.1(5), ), Y1.13 uncorrected Defects 45 , 60.1(9) uncovering uncover ing work (durin (during g searc search) h) 42.1 undecided disputes, Adjudicator W1.2(4), W1.2(4), W2.2(4) United Kingdom Housing Grants Grants,, Constr Construction uction and Regeneration Act (1996) as amended by the Local Democracy, Economic Development and Construction Act 2009 W1 , W2 use of works works by Employer 11.2(2), 11.2(2), 35.3 usurped power, risks due to 80.1 utilisation of resources C11.2(25), D11.2(25), E11.2(25) valuable object valuable objects s found within Site 60.1( 60.1(7), 7), 73.1 visual inspection inspection of Site 60.2 waiver by insurers 85.2 war 80.1 wastage of Plant and Materials C11.2(25), D11.2(25), E11.2(25) watching tests 40.3 wear to works, Employer ’s ’s risk 80.1 weather conditions 60.1(12) weather data/weather measurement 60.1(13) whole of the works X5.1 Completion 32.2, 50.1, 60.1(13), 93.1 2, C20.4, C53.3, D20.4, D53.7, E20.4, F20.4, X1.2, X16.1 Defined Cost C20.4, D20.4, E20.4, F20.4 winding-up order 91.1 witnesses, tribunal proceedings W1.4(6), W2.4(5) Working Areas (working areas) 11.2(18) addition 15 Equipment, Equipmen t, Plant and Materi Materials als outside 71.1 Equipment, Equipmen t, Plant and Materi Materials als removed from 92.2 Equipment, Equipmen t, Plant and Materi Materials als within 41.1, 93.1 Plant and Materi Materials als outside 70.1, 70.2, 71.1 Plant and Materials within 41.1, 70.2, 93.1 resources removed from C11.2(25), D11.2(25), E11.2(25) sharing sharin g with Others 25.1 working /Others see co-operation works with Employer /Others Completion of whole 11.2(13), 32.2, 50.1, 60.1(13), 92.1, 93.2, C20.4, C53.3, D20.4, D53.7, E20.4, F20.4, X1.2, X16.1 Contractor ’s ’s design 21.1, 22.1, X15.1
Contractor ’s ’s management responsibility for design,
construction and installation F20.2 and Defects 11.2(5) design C20.3, D20.3, E20.3, F20.3 early warning of possible performance impairment 16.1 Equipment left in 72.1 information specifying/describing 11.2(19), 25.1 loss of or damage to 80.1, 82.1, 84.1 part provided by Subcontractor 11.2(17) Plant and Materials included 11.2(12)(17) section X5.1 taking over 35 , 43.4, 60.1(15), 80.1, X6.1, X7.1, X16.1, X16.2 Works Information acceptance/procurement procedure C11.2(25), D11.2(25), E11.2(25), F11.2(26) accounts accoun ts and record records s C52.2 C52.2,, D52.2 D52.2,, E52.2, F52.2 and Activity Schedule A54.1, C54.1 advanced advance d payment bond X14.2 assessing compensation events A63.10, B63.10 and Bill of Quantities B55.1, D55.1 change(s) change( s) 14.3, 18.1, 44.1 2, 60.1(1), 63.8 9 and compensation events 60.1(1)(16), 63.89 Completion Date 11.2(2) conditions stated in 25.1, 60.1(5) Contractor ’s ’s accounts and recor records ds C52. C52.2, 2, D52.2, E52.2, F52.2 Contractor ’s ’s design 21.12, 22.1, 60.1(1), X15.1 Contractor ’s ’s parent company guarantee X4.1 and Defects 44.1, 44.2 definition 11.2(19) Equipment 11.2(7) health and safety 27.4 instructions that change 14.3, 18.1, 44.2, 60.1(1), 63.89 marking of Equipment, Plant and Materials 71.1 part of works works not in accordance with 11.2(5) performance bond X13.1 and programme 31.2 and Providing the Works 11.2(19), 11.2(19), 20.1, C11.2(25), D11.2(25), E11.2(25) subcontract work F20.2 works works take 35.2 testsover and of inspections inspec tions 40.12, 41.1, 42.1, 60.1(16) title to materials 73.2 uncorrected Defects 45.12
www.neccontract.com
# copyright
nec 2013 89
For use on projects associated with UK Shared Business Services Ltd
View more...
Comments
