Managing Compensation events properly!

TAGS: Compensation Events, NEC, NEC3, NEC4, Risk Management

In this presentation, given at the 2015 Linked In NEC People conference, Jon gives practical tips on how to assess compensation events quickly, amicably and accurately with less ‘hassle’. Wouldn’t that be good ?

NEC – Six levels of use of the programme

TAGS: Accepted Programme, Contract Strategy/Flexibility, NEC, NEC3, Project Management

In this video, Jon gives a quick overview of the NEC3 family of contracts before explaining the six levels of use of the Accepted Programmes which he has observed in high performing NEC3 contracts.

Should we co-operate or collaborate ... or just not bother?

TAGS: alliancing, collaboration, collaborative working, co-operation, NEC

This presentation was given with Lesley Hunt of Jacobs at the 2023 Linked In NEC People conference in London. Together, they challenge the notion that all you need to do is 'collaborate' for a successful NEC contract ... or if you should even collaborate at all !

How NOT to use an NEC Contract in order to have an Unsuccessful contract

TAGS: NEC, project management

This webinar was delivered via Barton Legal in 2021as part of their monthly webinars. In it, Jon identifies and briefly discusses the most common mistakes, from his experience, which undermine successful delivery of an NEC contract.

NEC4 : the good, the bad & the ugly – Part 2 : Changes to the Engineering and construction Contract

TAGS: NEC, NEC4, Project Management

This webinar was given via the APM when the 4th edition of NEC - NEC4 - came out in 2017. This Part 2 focusses on the changes made to the Engineering and Construction Contract, although similar changes were made to other NEC contracts.

Using AI to level the playing field of NEC procurement and project delivery

TAGS: Early Warnings, NEC, Risk Management

This webinar (which starts at 1min & 35s in) is a discussion between Jon and Nick Williams & Richard Beddard-Jones of nPlan on how their huge database of construction activity durations and AI based tools can help to deliver better NEC contracts.

Common mistakes when amending NEC contracts – a non-lawyer’s perspective

TAGS: contract, drafting, NEC, NEC4

This webinar was delivered via Barton Legal in early 2024 as part of their monthly webinars. In it, Jon discusses common mistakes he sees people - normally lawyers - make when drafting amendments. Rather than achieve 'legal certainty', they often undermine the likely success of the contract.

Practical early warnings

TAGS: Early Warnings, NEC, NEC4, Risk Management

This talk was recorded at the London NEC People conference in summer 2024. It takes people through the early warning clauses giving practical tips and insights into how to manage early warnings more efficiently & effectively to give better contract outcomes.

Part 2 : Flexibility and the Family of Contracts

TAGS: Contract Strategy/Flexibility, NEC, NEC3

This video gives an overview of the whole NEC3 family of contracts

Part 4 : Flexibility and Contractor design

TAGS: Contract Strategy/Flexibility, NEC, NEC3

This video explains how the Engineering & Construction Contract can be used for any extent of Contractor design

Part 7 : Summary of Flexibility

TAGS: Contract Strategy/Flexibility, NEC, NEC3

This video summarises how ‘flexibility’ is put into practice when using the NEC3 family.

Part 8 : Clarity and Simplicity

TAGS: Clarity & Simplicity, Contract Strategy/Flexibility, NEC, NEC3

This video explains all the contract documents under the Engineering and Construction Contract as well as how the family achieves its Clarity and Simplicity objective.

Part 12 : Open book accounting

TAGS: Contract Strategy/Flexibility, NEC, NEC3, Payment, Project Management

This video explains the importance of good open book management under the cost based options

Part 13 : The Accepted Programme

TAGS: Accepted Programme, NEC, NEC3, Project Management

This video gives a quick overview of the programming requirements of the NEC.

Part 15 : Compensation events

TAGS: Compensation Events, NEC, NEC3, Project Management

This video gives a quick overview of compensation event definitions, process and timescales.

Part 16 : Review of Stimulus to Good Project

TAGS: Accepted Programme, Compensation Events, Early Warnings, NEC, NEC3, Project Management

This video briefly reviews how the NEC aims to stimulate good project management

Part 18 : Course Review

TAGS: NEC, NEC3

This video brings the whole of the NEC3 in an hour course to a conclusion.

Beyond Collaboration with Connect Plus

TAGS: Contract Strategy/Flexibility, NEC, NEC3

Given in 2017, Chris Richardson of Connect Plus, the organisation that maintains the M25, explains the issues that they have, before Jon outlines the innovative approach they are taking to their future frameworks. It has proved highly successful in practice.

Creating unexpected value from outcome based procurements

TAGS: Contract Strategy/Flexibility, contract strategy, outcome based contracting

In collaboration with the Association for Project Management, Jon chaired a webinar to discuss 'Creating unexpected value from outcome based procurements'. The fellow participants were Darren Knowd, Tony Birch and Hugo Minney.

ECI and Project Incentivisation

TAGS: alliancing, Contract Strategy/Flexibility, Early Contractor Involvement, ECI, NEC, NEC4

This presentation was given by Jon at the 2018 Linked In NEC People conference. It firstly looks at the effectiveness of positive versus negative incentivisation; then at the different types of Early Contractor Involvement (ECI) under NEC and, lastly, at the three basic types of Alliance arrangements.

Alliancing Strategy for New Zealand Coal Mine – Part 2

TAGS: alliancing, collaboration, collaborative working, Contract Strategy/Flexibility, contract strategy

This video continues the presentation Jon gave at the Association for Project Management conference on 'Contracting for Benefits'. In it, Jon explains how he worked with New Zealand's national coal mining company, Solid Energy (NZ) Ltd, to select and contract with an Australian coal mining company in order to transform the operation of their largest coal mine and double its working life.

Alliancing Strategy for New Zealand Coal Mine – Part 3

TAGS: alliancing, collaboration, collaborative working, Contract Strategy/Flexibility

This is the last video of a presentation Jon gave at the Association for Project Management conference on 'Contracting for Benefits'. In it, Jon explains how he worked with New Zealand's national coal mining company, Solid Energy (NZ) Ltd, to select and contract with an Australian coal mining company in order to transform the operation of their largest coal mine and double its working life.

APM Guide to Contracts and Procurement: Concept and Feasibility by Dr Jon Broome

TAGS: Contract Strategy/Flexibility, contract strategy, outcome based contracting, procurement, Project Management

In this presentation by Jon, you will gain : (1) an overview of the process chart ; (2) why project managers and procurement people need to be involved at this stage; and (3) a few war stories to illustrate good and bad practice.

APM Guide to Contracts and Procurement: Project Procurement Strategy by James Buckley-Walker

TAGS: collaboration, Contract Strategy/Flexibility, contract strategy, procurement, Project Management

In this session by James Buckley-Walker you will learn about : (1) assessment of the internal capacity of the employer organisation or the external potential to provide the package; (2) the nature of the relationship sought with the potential provider; (3) the most appropriate high-level contracting strategy; (4) the provider selection strategy to be employed; and (5) defining the scope, interfaces & inter-dependencies between each package .

APM Guide to Contracts and Procurement: Prepare Contract Terms by Alastair Greenan

TAGS: procurement, Project Management

This session is presented by Alastair Greenan, an experienced project manager of £billion+ projects in the oil sector. You will learn: (1) what you need in place before you begin (inputs); (2) an overview of the Guide's Process Chart; (3) how to effectively brief the team; (4) considerations on Legal Context and Form of Contract; and (5) how to develop the Contract Requirements & ensure an effective review.

APM Guide to Contracts and Procurement: Select Provider and Award the Contract by John Lake

TAGS: procurement, Project Management

John Lake is an experienced project manager in IT with expertise in contract management. In this session, you will gain : (1) an overview of the process for developing a package’s contract strategy; and (2) an understanding of the different approaches for final selection and relate them to the E U procurement regulations;

APM Guide to C&P : Contract Closure, Cut-over and Operation & Support by Alastair Greenan

TAGS: Administration, procurement, Project Management

In this final session by Alastair Greenan, you will learn about : (1) when a project ends and the three types of closure; (2) when & how to prepare for contract closure; (3) what you need to do to close-out a contract; and (4) managing potential damage clauses, stakeholders and client expectations.

Overview of the NEC - What sets it apart from other contracts?

TAGS: Clarity & Simplicity, Contract Strategy/Flexibility, Discussion, NEC, NEC3, NEC4

In this video, the panel discuss what aspects make the NEC3 form of contract unique.

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 joined-up thinking in the way that the construction act developed and the implementation of the NEC.

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.

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?

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.

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 ?

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?

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.

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.

How do I recover my Subcontractor's 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 ?

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.

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.

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.

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 contracts in practice ? Ian, Ewen, Rob and Jon discuss.

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 ?

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.

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 ?

Risk management is dead (or dying)? The right to reply Webinar

TAGS: Project Management, Risk Management

In this webinar, Peter Campbell - the then chair of APM's Risk SIG - responds to Jon’s criticisms of risk management.

Actually managing the risk under NEC - Part 1 : Using nPlan to help get a first Accepted Programme

TAGS: Accepted Programme, AI, Artificial Intelligence, Big data, collaboration, collaborative working, NEC, NEC4

This is the first of three more detailed webinars discussing how nPLan's huge database of construction activity durations and AI powered IT can help manage NEC contracts better. This webinar looks at how it can help agree a good Accepted Programme for the overall benefit of the contract.

Actually managing the risk under NEC - Part 3 : making the assessment of compensation events easier

TAGS: AI, Artificial Intelligence, Big data, collaboration, collaborative working, Compensation Events, co-operation, NEC, NEC4

This is the last of three more detailed webinars discussing how nPLan's huge database of construction activity durations and AI powered IT can help manage NEC contracts better. This one considers how it can help with the rapid agreement of compensation events.

Using AI to level the playing field of NEC procurement and project delivery

TAGS: ;, AI, Artificial Intelligence, Big data, NEC, NEC4, Project Management, Risk Management

This webinar (which starts at 1min & 35s) is a discussion between Jon and Nick Williams & Richard Beddard-Jones of nPlan on how their huge database of construction activity durations and AI based tools can help to deliver better NEC contracts.

Contract Strategy Part 1: Principles & Process

This webinar gives an overview of what procurement is in a project environment and how contract strategy fits into it; it then explores the principles and thought processes involved in developing an intelligent 'fit for purpose' contract strategy; and finishes with a quick overview of NEC's three main objectives with the 'Flexibility' objective being the most relevant.

CONTRACT STRATEGY PART 2: SELECTING THE RIGHT NEC4 CONTRACT

This session gives an overview of each member of the NEC4 contract family, outlining what they are and when to use them. It finishes by comparing the options available under the NEC4 family with those available under the FIDIC and JCT forms.

CONTRACT STRATEGY PART 4: Management Contracts & secondary options relating to incentivisation

This sessions starts with a few Q&As arising from the previous sessions, before diving into what the differences between the three main management options are - namely management contracting, construction management & delivery partner - and when to use each. It then considers some principles & practicalities in developing an intelligent incentive plan before considering the relevant secondary options to do with this, whether expressed positively i.e. bonuses or negatively i.e. damages.

Contract strategy part 5: the remaining secondary options

Having covered the secondary options to do with incentives in the previous session, this one starts with a brief discussion on designing intelligent incentive plans that work. It then covers the remaining X-clauses to do with : external cost events; remedies in case of insolvency; correcting Defects and Contractor design. The course finishes off on UK specific clauses and a few comments on the use of Z-clauses.