Tag: Administration

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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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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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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