Overview of the NEC - Is the NEC always suitable?
TAGS: Contract Strategy/Flexibility, Discussion, NEC, NEC3, NEC4
Overview of the NEC - Is the NEC always suitable? In this video, the panel discuss whether the NEC form of contract is always the best option for a project and, if ‘Yes’ how to apply it.
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Overview of the NEC - Do the NEC and the Construction Act have common values?
TAGS: Adjudication, NEC, NEC3, NEC4, Payment
In this video, the panel discuss whether there was a joint thinking in the way that the construction act developed and the implementation of the NEC. Adjudication, Payment
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The impact of Adjudication on the development of NEC3
TAGS: Adjudication, Discussion, NEC, NEC3
In this video, the panel discusses Adjudication. In particular, as it is a private process, whether the lack of testing through a court process has stunted its development.
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Do the communications clauses of NEC really work effectively?
TAGS: Administration, NEC, NEC3, NEC4
For most major projects, communications are a key ingredient for success. In this video, Rob, Ewen, Ian and Jon debate whether the definitions and applications of the communication clauses, especially 13.1 and 13.7 enable or prevent effective communication?
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NEC: Is there really a difference between 'approved' and 'accepted'?
TAGS: Accepted Programme, Administration, NEC, NEC3, NEC4
Accepted and approved sound very similar. One is used in the NEC the other is not. Is this just a matter of semantics or is there an important point of principle underlying this choice of words. What does it mean to “accept” under the NEC and are there any particular consequences ? Jon, Ian, Ewen and Rob discuss and come up with a simple suggestion to improve the contract.
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NEC : Should early warnings be contractual obligations?
TAGS: Early warnings, NEC, NEC3, NEC4
Early warnings are a very practical tool to help a project run smoothly and generate opportunity to identify problems and avoid or mitigate their impact. Does that process work better when it has contractual teeth or should it be a tool to enable collaboration without risk of loss if it is not operated properly. Jon, Ian, Ewen and Rob discuss whilst giving some practical tips on how to use them.
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NEC: Who controls a risk reduction meeting?
TAGS: Early Warnings, NEC, NEC3, NEC4
Part of the early warning process under NEC is the risk reduction meeting. Primarily it is a means to discuss and track the risks which have been identified and notified under the contract. Who is best placed to manage the meeting and the resultant risk register? What happens if someone refuses to attend and how can that be managed ?
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NEC: Why aren't options B and D used much?
TAGS: Contract Strategy/Flexibility, NEC, NEC3, NEC4, Payment
There is a clear preference in the UK market for Options A and C : is there a contractual, legally, technical, or practical reason for that? Jon, Ian, Rob and Ewen discuss this and whether other alternatives are being missed?
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Is there a Final Account mechanism under the NEC3 ?
TAGS: Administration, NEC, NEC3, Payment
When you get to the end of the contract, a key question is to tally up how much it has cost against how much it was planned to cost and reach a financial settlement. How does the NEC achieve this? Is this one area where it is process light compared to other contracts? Why might that be? Jon, Ian, Rob and Ewen discuss.
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NEC: The Schedule of Cost Components is really complicated, why not just use rates?
TAGS: Administration, NEC, NEC3, NEC4, Payment
One of the innovative approaches of the original New Engineering Contract was to provide more definition around what amounts to recoverable “cost” under the contract in the form of the Schedule of Cost Components. Is it really worth the trouble though? Jon, Ian, Rob and Ewen discuss.
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Does the payment mechanism under NEC work efficiently?
TAGS: Administration, NEC, NEC3, Payment
Most contracts assume the contractor will lead the payment application cycle with the certifier reviewing the application. Why is the NEC different in having the process led by the Project Manager ? And what actually happens in practice ? Jon, Ian, Ewen and Rob discuss.
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Why do Options C, D and E let the Project Manager disallow costs?
TAGS: Administration, Contract Strategy/Flexibility, NEC, NEC3, NEC4, Payment
Disallowed Cost is a subject that makes almost everyone, no matter which side of the contract they sit on, slightly hot under the collar. The fab four discuss why ‘Disallowed Cost’ is needed as a provision, what happens when it is wrongly applied and practical steps to avoid people getting hot under the collar!
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How do I recover my Subcontractors overheads?
TAGS: Administration, Contract Strategy/Flexibility, NEC, NEC3, NEC4, Payment
NEC allows recovery of Defined Cost plus Fee with each payment option having a slightly different approach to the calculations. So how do you make sure that those definitions tie up with the supply chains, so that no one is either under or over recovering ?
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Is an NEC programme just a bar chart?
TAGS: Accepted Programme, NEC, NEC3, NEC4
The programme is central to most process under the NEC but what exactly is the programme? If it isn’t just a bar chart what exactly is it or what could it include? Jon, Ian, Ewen and Rob discuss.
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How much detail should the Programme include?
TAGS: Accepted Programme, NEC, NEC3, NEC4
For long and complex projects the programme can itself be complicated. How much information should anyone reasonably expect to see on a programme and does the distance away from “time now” matter? If things are further in the future is it OK to be a little more vague about them?
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Is there an implied acceptance of programmes?
TAGS: Accepted Programme, NEC, NEC3, NEC4
Given how central the programme is to NEC, it must be important that everyone works to the same, up to date, version of it. So what happens then if a Contractor submits a programme and hears nothing back? Is it accepted or not ? And does it make a difference? Jon, Ian, Ewen and Rob discuss.
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Are the programmes requirements of NEC too complicated?
TAGS: Accepted Programme, NEC, NEC3, NEC4
Clause 31.2 contains a very long list of what must be included in a compliant programme and clause 32.1 adds to that for each update. Isn’t that really all too much particularly if the project is a relatively simple one ? Rob, Ian, Ewen and Jon discuss.
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NEC: Float and time risk allowance are the same, aren't they?
TAGS: Accepted Programme, NEC, NEC3, NEC4
An NEC programme should show both time risk allowance and float. What are the practical and programming differences between the two? How do you show them and use them effectively? Rob, Ian, Ewen and Jon discuss.
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Compensation Events tie together all contractual consequences
TAGS: Accepted Programme, Compensation Events, NEC, NEC3, NEC4
The theory behind compensation events in the NEC is to take an event and deal with all of its consequences and how all parties have dealt with it in one go. Does that produce a better result or just a more complicated process? Is it really any different to other contacts in practice ? Ian, Ewen, Rob and Jon discuss.
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Which of compensation events are most common?
TAGS: Compensation Events, NEC, NEC3, NEC4
The compensation event mechanism is intended to be a sole remedy under the contract. So the list of nineteen core compensation events should be all encompassing. Despite that breadth are there trends for which ones are most common ? And are there particular events which rarely seemed to be claimed properly ?
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How do the time bars in clause 61.3 operate?
TAGS: Administration, Compensation Events, NEC, NEC3, NEC4
Clause 61.3 provides that, for certain compensation events, if the Contractor does not notify them within 8 weeks of becoming aware of them, it will lose the right to a change in the total of the Prices and the contractual Completion Date. That doesn’t sound very much like mutual trust and co-operation, does it ? Is it appropriate to have time bars in this contract and do they work ?
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What happens when the Project Manager doesn't reply properly?
TAGS: Administration, Compensation Events, NEC, NEC3, NEC4
There are a number of stages that a compensation event needs to pass through before it becomes contractually implemented. Is it possible for the Project Manager to de-rail the process by refusing to engage in it? If there is a lack of engagement what happens ideally and practically ? Jon, Ewen, Rob and Ian discuss.
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Do the 63.7 assumptions work in practice?
TAGS: Compensation Events, NEC, NEC3, NEC4
Clause 63.7 allows the Project Manager to give some working assumptions to the Contractor where there is not enough detail available for a proper quotation for a compensation event. Are assumptions often given and if they are, do they help the Contractor or just cover the Project Manager ?
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