NEC3 Videos
Do the 63.7 assumptions work in practice?
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 ?
What happens when the Project Manager doesn’t reply properly?
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.
How do the time bars in clause 61.3 operate?
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 ?
Which of compensation events are most common?
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 ?
Compensation Events tie together all contractual consequences
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.
NEC: Float and time risk allowance are the same, aren’t they?
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.
Are the programmes requirements of NEC too complicated?
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.
Is there an implied acceptance of programmes?
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.
How much detail should the Programme include?
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?
Is an NEC programme just a bar chart?
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.
How do I recover my Subcontractor’s overheads?
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 ?
Why do options C, D and E let the Project Manager disallow costs?
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!
Does the payment mechanism under NEC work efficiently?
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.
NEC: The Schedule of Cost Components is really complicated, why not just use rates?
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.
Is there a Final Account mechanism under the NEC3 ?
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.
NEC: Why aren’t options B and D used much?
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: Who controls a risk reduction meeting?
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 : Should early warnings be contractual obligations?
Early warnings are a very practical tool to help a contract 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.
NEC: Is there really a difference between ‘approved’ and ‘accepted’?
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.
Do the communications clauses of NEC really work effectively?
Do the communications clauses of NEC really work effectively?
Does NEC3 have too much process and procedure ?
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?
The impact of Adjudication on the development of 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.
Overview of the NEC – Do the NEC and the Construction Act have common values?
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.
Overview of the NEC – Is the NEC always suitable?
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.
Overview of the NEC – What sets it apart from other contracts?
In this video, the panel discuss what aspects make the NEC3 form of contract unique.
Part 18 : Course Review
This video brings the whole of the NEC3 in an hour course to a conclusion.
Part 17 : Quirks and Myths of the NEC
This video explores some of the quirks and myths of the NEC
Part 16 : Review of Stimulus to Good Project
This video briefly reviews how the NEC aims to stimulate good project management
Part 15 : Compensation events
This video gives a quick overview of compensation event definitions, process and timescales.
Part 14 : Early warnings and the risk reduction process
This video gives a quick overview of the early warnings and the risk reduction process under NEC
Part 13 : The Accepted Programme
This video gives a quick overview of the programming requirements of the NEC.
Part 12 : Open book accounting
This video explains the importance of good open book management under the cost based options
Part 09 : Stimulus to Good project Management
This video gives an overview of the Stimulus to Good Management objective and why it matters.
Part 08 : Clarity and Simplicity
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 07 : Summary of Flexibility
This video summarises how ‘flexibility’ is put into practice when using the NEC3 family.
Part 06 : Flexibility and the Secondary options
This video gives an overview of how secondary options can be selected to fine tune the contract strategy
Part 04 : Flexibility and Contractor design
This video explains how the Engineering & Construction Contract can be used for any extent of Contractor design
Part 02 : Flexibility and the Family of Contracts
This video gives an overview of the whole NEC3 family of contracts
Part 01 : Introduction to the NEC3
This video provides an overview of the NEC3 families' objectives.
Beyond Collaboration with Connect Plus
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.
NEC – Six levels of use of the programme
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.
NEC3: Introduction to the PSSC
The Professional Services Short Contract (PSSC) was first published as part of April 2013 update to the NEC3 Contract family. It offers an alternative to the full Professional Services Contract for low value and less complex commissions. It was jointly developed with the APM with Jon leading the development of it. Find out the reasons for the PSSC and how & when to use it.
An NEC interview with the Chairman of the APM C&P SIG
Jon is interviewed here in his role as chair of the APM’s Contracts & procurement SIG, before focussing on the NEC3 Professional Services Short Contract which, in 2013, had just been published and Jon led the development of.
Managing Compensation events properly!
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 ?