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New Arrival The Contractor's NEC3 ECC Handbook

The Contractor's NEC3 ECC Handbook

  • Author:
  • Publisher: Wiley-Blackwell
  • ISBN: 9781119137498
  • Published In: August 2017
  • Format: Paperback , 264 pages
  • Jurisdiction: International ? Disclaimer:
    Countri(es) stated herein are used as reference only

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  • Description 
  • Contents 
  • Author 
  • Details

    Addresses the daily challenges faced by contractors who use the NEC3 ECC with clear, practical and useable advice on how to solve them

    Written in plain English for contractors and their staff, this book explains how the NEC3 contract works and provides answers to common questions. It presents complicated concepts in a simple, straightforward and understandable way, focusing mainly on day-to-day use. Steven Evans, an expert with thirty years of experience in construction, considers all the provisions of the contract and explains the procedures, obligations, and liabilities contained within it. 

    NEC3 ECC is a process-based contract based on project management best practices. The basic philosophy behind it differs radically from the more adversarial approaches embodied by traditional contracts. While the NEC3 ECC may appear quite simple on the surface, it is often misunderstood and mismanaged by its day-to-day users. Despite the clear and urgent need for expert guides for those who use the NEC3 ECC, or who are considering adopting this increasingly popular contract, available books on the subject are highly technical and written for lawyers and professional consultants—until now. Written specifically for contractors using the NEC3 ECC contract, this book is aimed specifically at a level consistent with the knowledge and experiences of contractors and their staff.

    • A practical guide to the procedures in the NEC3 Engineering and Construction Contracts
    • Written specifically for those using and administering the contracts—not for lawyers or professional consultants
    • Considers all the provisions of the contract and explains the procedures, obligations and liabilities
    • Covers all NEC3 ECC versions and variations created by the Main and Secondary Options
    • Provides clear, concise, practical, and straightforward explanations of the NEC3 ECC form used by commercial and operational staff of main contractors

    The Contractor's NEC3 EEC Handbook is a vital working resource for main contractors and their employees, including quantity surveyors, commercial managers, contracts managers, project managers, site managers, and estimators.  

  • About the Book xiii

    About the Author xv

    1 Introduction 1

    Ten Things You Need to Know 1

    Author’s Note 2

    2 The Contract 5

    About the NEC Contract 5

    Clarity and Simplicity 5

    Flexibility 5

    Stimulus to Good Management 6

    Collaborate…or Else! 6

    The Latham Report 6

    The NEC3 Suite 7

    Contracts 7

    Flow Charts and Guidance Notes 8

    The ECC Form 9

    The Core Clauses 9

    The Main Options 9

    Option A – Priced Contract with Activity Schedule 10

    Option B – Priced Contract with Bill of Quantities 11

    Option C – Target Contract with Activity Schedule 11

    Option D – Target Contract with Bill of Quantities 12

    Option E – Cost Reimbursable Contract 12

    Option F – Management Contract 13

    W Clauses 13

    The Secondary Options 14

    X Clauses 14

    Y Clauses 14

    Z Clauses 15

    The Contract Data 15

    The Schedules 16

    The Schedule of Cost Components 16

    The Shorter Schedule of Cost Components 16

    Formation of the Contract 16

    Offer and Acceptance 16

    Attestation 17

    Necessary Contract Documents 17

    Frequently Asked Questions 17

    3 General 19

    Overview 19

    Actions 19

    The Employer 20

    The Contractor 22

    The Project Manager 27

    Impartiality 32

    The Supervisor 32

    The Obligations 33

    Identified and Defined Terms 34

    (1) The Accepted Programme 35

    (2) Completion 36

    (3) Completion Date 38

    (4) The Contract Date 38

    (5) Defect 39

    (6) Defects Certificate 39

    (7) Equipment 40

    (8) The Fee 40

    (9) Key Date 41

    (10) Others 42

    (11) Parties 42

    (12) Plant and Materials 42

    (13) To Provide the Works 43

    (14) The Risk Register 44

    (15) The Site 44

    (16) Site Information 45

    (17) Subcontractor 45

    (18) Working Areas 46

    (19) Works Information 46

    (20) The Activity Schedule (Main Options A and C Only) 49

    Who Prepares the List of Activities? 49

    What Should be Included in the Schedule? 50

    Relationship to the Accepted Programme 50

    Changes to the Activity Schedule 50

    Use Under Option A 51

    Use Under Option C 51

    Errors in the Activity Schedule 51

    (21) The Bill of Quantities (Main Options B and D Only) 52

    Changes to the Bill of Quantities 53

    Use Under Option B 53

    Use Under Option D 53

    Errors in the Bill of Quantities 54

     (22) to (26) Defined Cost 54

    Main Options A and B 54

    Main Options C to E 54

    Main Option F 55

    (25) Disallowed Costs 55

    (27) Price for Work Done to Date (Option A) 56

    (28) Price for Work Done to Date (Option B) 56

    (29) Price for Work Done to Date (Options C to F) 57

    (30) Prices (Main Options A and C) 57

    (31) Prices (Main Options B and D) 57

    (32) Prices (Main Options E and F) 57

    (33) The Total of the Prices (Option D) 57

    Interpretation and the Law 57

    Communications 58

    Notification 59

    The Project Manager and the Supervisor 60

    Adding to the Working Areas 61

    Early Warning 61

    Ambiguities and Inconsistencies 63

    Illegalities and Impossibilities 64

    Prevention 64

    Frequently Asked Questions 65

    4 The Contractor’s Main Responsibilities 71

    Overview 71

    Providing the Works 77

    The Contractor’s Design 78

    Acceptance of the Contractor’s Design 78

    Using the Contractor’s Design 79

    Design of Equipment 79

    People 80

    Working With the Employer and Others 81

    Subcontracting 82

    Other Responsibilities 84

    Frequently Asked Questions 85

    5 Time 89

    Overview 89

    Starting, Completion and Key Dates 89

    Commencement and Completion 89

    Completion Certificate 90

    Key Dates 91

    The Programme 91

    The First Programme 92

    Information on the Programme 92

    Acceptance of the Programme 95

    Rejection of the Programme 95

    Revising the Programme 96

    Access to and Use of the Site 98

    Instructions to Stop or Not to Start the Work 98

    Takeover 98

    Acceleration 99

    Frequently Asked Questions 100

    6 Testing and Defects 105

    Overview 105

    Tests and Inspections 106

    Tests and Inspections Before Delivery 107

    Searching For and Notifying Defects 107

    Searching 107

    Notifying 108

    Correcting Defects 108

    Correction 108

    Defect Correction Period 108

    Defects Certificate 109

    Accepting Defects 109

    Uncorrected Defects 110

    Frequently Asked Questions 111

    7 Payment 115

    Overview 115

    Assessing the Amount Due 115

    Main Option A 116

    Main Option B 117

    Main Option C 117

    Amounts Due to Subcontractors 118

    The Cost of Components in the Schedule of Cost Components 119

    Disallowed Costs 119

    The Fee 120

    Main Option D 120

    Amounts Due to Subcontractors 121

    The Cost of Components in the Schedule of Cost Components 121

    Disallowed Costs 121

    The Fee 122

    Main Option E 122

    Amounts Due to Subcontractors 123

    The Cost of Components in the Schedule of Cost Components 124

    Disallowed Costs 124

    The Fee 125

    Main Option F 125

    Amounts Due to Subcontractors 126

    The Prices for the Work Done by the Contractor 127

    Disallowed Costs 127

    The Fee 127

    Unfixed Materials on Site 128

    Main Option A 128

    Main Option B 128

    Main Options C, D and E 128

    Main Option F 128

    The First Programme 128

    Payment 128

    The Primary Legislation 129

    The Secondary Legislation 129

    How it Works 129

    A ‘Construction Contract’ 129

    The Payment Provisions 130

    The Payment Notice 130

    The ECC Provisions 131

    Interest 132

    Defined Cost 132

    The Contractor’s Share 133

    The Activity Schedule 134

    The Bill of Quantities 135

    Frequently Asked Questions 135

    8 Compensation Events 139

    Overview 139

    Compensation Events 140

    Core Clause Compensation Events 140

    Weather Measurement 146

    Weather Data 146

    Once in Ten Years 146

    Bill of Quantity Compensation Events 149

    Secondary Option Compensation Events 150

    Clause X2.1 – Changes in the Law 150

    Clause X12.3(6) and (7) – Changes in Partnering Information 151

    Clause X14.2 – Delay in Making Advanced Payment 151

    Clause X15.2 – Correction of a Defect 151

    Clause Y2.4 – Suspension Under the Housing Grants,

    Construction and Regeneration Act 1996 151

    Compensation Event Procedure 151

    Notifying Compensation Events 151

    Quotations for Compensation Events 154

    Assessing Compensation Events 156

    Effect of the Event on Defined Cost 157

    Effect of the Event on Planned Completion 158

    Failure to Give Early Warning 159

    The Project Manager’s Assessment 159

    Exhaustive Remedy 161

    Implementing Compensation Events 161

    Main Option Clauses 161

    Summary of Sanctions 163

    Other Remedies 164

    Frequently Asked Questions 164

    9 Title 169

    Overview 169

    The Employer’s Title to Plant and Materials 169

    Marking Equipment, Plant and Materials Outside the

    Working Areas 170

    Removing Equipment 171

    Objects and Materials within the Site 171

    Frequently Asked Questions 171

    10 Risks and Insurance 173

    Overview 173

    Employer’s Risks 173

    Contractor’s Risks 174

    Repairs 175

    Indemnity 175

    Insurance Cover 175

    Insurance Policies 176

    If the Contractor Does Not Insure 176

    Insurance by the Employer 177

    Frequently Asked Questions 177

    11 Termination 179

    Overview 179

    Termination 179

    Reasons for Termination 180

    Procedures on Termination 181

    Payment on Termination 181

    Frequently Asked Questions 183

    12 Dispute Resolution (W1 and W2 Adjudication) 185

    Overview 185

    Option W1 185

    Dispute Resolution 185

    The Adjudicator 186

    The Adjudication 188

    Review by a Tribunal 191

    Option W2 192

    Dispute Resolution 192

    The Adjudicator 193

    The Adjudication 196

    Review by a Tribunal 199

    Frequently Asked Questions 200

    13 X and Y Clauses 203

    Introduction 203

    The X Clauses 203

    X1 – Price Adjustment for Inflation 203

    X2 – Changes in the Law 204

    X3 – Multiple Currencies 204

    X4 – Parent Company Guarantees 205

    X5 – Sectional Completion 205

    X6 – Bonus for Early Completion 205

    X7 – Delay Damages 206

    X12 – Partnering 206

    X13 – Performance Bond 207

    X14 – Advanced Payment to the Contractor 207

    X15 – Limitation of Contractor’s Liability for his Design to Reasonable Skill and Care 207

    X17 – Low Performance Damages 208

    X18 – Limitation of Liability 208

    X20 – Key Performance Indicators 209

    The Y Clauses 209

    Y(UK)1 – Project Bank Account 209

    Overview 209

    Definitions 210

    Project Bank Account 210

    Named Suppliers 210

    Payments 211

    Effect of Payment 211

    Trust Deed 211

    Termination 211

    Y(UK)2 – Housing Grants, Construction and Regeneration Act 1996 212

    Overview 212

    Definitions 212

    Dates for Payment 212

    Notice of Intention to Pay Less 212

    Suspension of Performance 212

    Y(UK)3 – Contracts (Rights of Third Parties) Act 1999 213

    Overview 213

    Frequently Asked Questions 213

    14 Z Clauses 215

    Overview 215

    Additional Conditions of Contract 215

    Frequently Asked Questions 216

    15 Schedules of Cost Components 219

    Overview 219

    Schedule of Cost Components 219

    Subcontractors 220

    People 220

    Equipment 220

    Plant and Materials 221

    Charges 222

    Manufacture and Fabrication 222

    Design 222

    Insurance 222

    Shorter Schedule of Cost Components 223

    Subcontractors 223

    People 223

    Equipment 224

    Plant and Materials 225

    Charges 225

    Manufacture and Fabrication 225

    Design 225

    Insurance 226

    Frequently Asked Questions 226

    Index 229

  • Steven C. Evans is Director of construction consultancies in the UK and in Australia. He has worked in construction for nearly 30 years, beginning as an on-site trainee quantity surveyor for a top tier multinational contractor, moving on to managing surveyor for a medium sized UK based contractor, and finally, as a dispute resolution and avoidance specialist. Mr. Evans has a wealth of practical experience to supplement his legal knowledge and qualifications.

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