Tag: Payment

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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Part 9 : Stimulus to Good project Management

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

This video gives an overview of the Stimulus to Good Management objective and why it matters.

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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

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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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