Tag: NEC4

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.

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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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Does NEC3 have too much process and procedure ?

TAGS: Accepted Programme, Compensation Events, Early Warnings, NEC, NEC3, NEC4

NEC contains a lot of processes from early warning through programme updates to compensation events. In this video, the panel discusses whether these process add unnecessary cost and bog a project down in unnecessary administration?

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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 ?

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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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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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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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NEC4 : the good, the bad & the ugly – Part 1 : Contract strategy changes

TAGS: Contract Strategy/Flexibility, contract strategy, NEC, NEC4

This webinar was given via the APM when the 4th edition of NEC - NEC4 - came out in 2017. This Part 1 focusses on the changes affecting contract strategy: the new members of family , changes to the payment options & changes to the secondary options.

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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.

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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.

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An Overview of Early Contractor Involvement

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

This presentation, given at the start of 2023, talks through 6 different archetypes of Early Contractor Involvement (ECI) and their pros & cons and hence which one is most suitable for different types of projects. It then does the same for the three different basic types of Alliances.

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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 a series of 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.

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Actually managing the risk under NEC - Part 2 : Using nPlan to more effectively manage early warnings

TAGS: AI, Artificial Intelligence, Big data, collaboration, collaborative working, Early Warnings, NEC, NEC4, Risk Management

This is the second of a series of 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 nPlan's tool can help link risk management to early warnings to give EARLY early warnings !

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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 a series of 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.

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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 actually 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.

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

TAGS: contract, drafting, NEC, NEC4

This webinar was delivered via Barton Legal in 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.

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Practical early warnings

TAGS: Early Warnings, NEC, NEC4, Risk Management

This talk was recorded at the NEC People conference in 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.

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