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NEC Managing Reality

Construction / Building Law

NEC Managing Reality A Practical Guide To Applying NEC3, 2nd edition (5 book set)

Edited by Barry Trebes · Bronwyn Mitchell

October 2012

Specifications

ISBN-13: 9780727757166
Publication: October 2012
Format: Paperback (5 volumes) , 630 pages
Jurisdiction: International ? Countri(es) for reference only

Details

Managing Reality is a series of books written by NEC experts well versed in using NEC3 in industry that explains how NEC3 can be used to optimum benefit in everyday environments. Ultimately, this suite of books forms the complete and authoritative guide to getting the most from NEC3 for your projects.

The books are based on usage of the NEC’s core document – theEngineering and Construction Contract – although the principles and procedures they discuss apply equally across all the documents in the NEC suite.

Managing Reality, 2nd edition, places great emphasis on offering ‘practical tips’ at appropriate points in the text and highlighted examples. Standard forms are included with their usage explained together with checklists.Managing Reality, 2nd edition, are practical manuals designed to aid both existing and new users in implementing the NEC, vital for anyone involved in preparing, administering or contributing to a NEC contract.

1.1 Introduction
1.2 What is the ECC?
ICE Conditions of Contract Withdraw
1.3 Why is the ECC different?
1.4 ECC structure
1.5 Conventions
1.6 Concepts
1.7 Terminology
1.8 Terminology not used in the ECC
1.9 Commentary on other aspects of the ECC
1.10 How does the ECC affect the way you work?
1.11 Summarising the ECC
1.12 Potential benefits

Roles in the Engineering and Construction Contract

2.1 Introduction
2.2 Roles in the ECC
2.3 How to designate a role
2.4 Separation of roles and responsibilities
2.5 Other roles in the ECC
2.6 The project team
2.7 What does the ECC mean to me
2.8 Delegation
2.9 Replacement of personnel

Appendix: List of duties
Index

BOOK 2: Procuring an Engineering and Construction Contract

Preface
Foreword

Procurement

1.1 What is procurement?
1.2 Value for money
1.3 The procurement process
1.4 Procurement time cycle
1.5 Procurement strategy
1.6 Contract strategy
1.7 Public sector procurement
1.8 Generic good principles for effective procurement
1.9 Long-term agreements
1.10 How does the ECC contribute to effective ‘partnership’?
1.11 ECC tendering procedure
1.12 From tendering to contract
1.13 Procurement scenarios

Appendix: Assessing tenders

A1.1 Introduction
A1.2 Information to include in the invitation to tender (ITT)
A1.3 Evaluation
A1.4 Conducting the evaluation

Appendix: ECC tender documentation

A2.1 Introduction
A2.2 Header page
A2.3 Letter of Invitation
A2.4 Conditions of Tendering
A2.5 Tender submission documents
A2.6 Contract documents

Contract Options

2.1 Introduction
2.2 ECC main and secondary Options – general
2.3 Main Options
2.4 Priced contracts
2.5 Target contracts
2.6 Cost-reimbursable contracts
2.7 Administering the ECC cost-based contract
2.8 Dispute resolution procedure Options in ECC3
2.9 Secondary Options

Appendix: Audit Plan

A3.1 Introduction
A3.2 Basis of Audit Plan and procedures
A3.3 Main audit objectives
A3.4 Reporting
A3.5 Audit report
A3.6 Goals
A3.7 Amendments to Audit Plan
A3.8 Distribution of Audit Plan
B3.1 Audit objectives
B3.2 Procedures
B3.3 Audit records
C3.1 Audit objectives
C3.2 Audit records
C3.3 Information to be provided by the Project Team
D3.1 Audit objectives
D3.2 Procedures
D3.3 Audit records
D3.4 Information to be provided by the Project Team
E3.1 Audit objectives
E3.2 Procedures
E3.3 Audit records
E3.4 Information to be provided by the Project Team
F3.1 Audit Objectives
F3.2 Procedures
F3.3 Audit records
F3.4 Information to be provided by the Project Team
G3.1 Audit objectives
G3.2 Procedures
G3.3 Audit records
H3.1 Audit objectives
H3.2 Procedures
H3.3 Audit records
H3.4 Information to be provided by the Project Team

Completing the Contract Data

3.1 Introduction
3.2 Structure of the chapter
3.3 Part one of this chapter: choosing the main Option
3.4 Part two of this chapter: choosing the secondary Options
3.5 Part three of this chapter: choosing optional Contract Data statements
3.6 Part four of this chapter: all entries in Contract Data part one by the Employer
3.7 Part five of this chapter: Contract Data part two by the Contractor

Works Information guidelines

4.1 Introduction
4.2 Providing the Works
4.3 What should be included in the Works Information
4.4 Separation of the Works Information and Site Information
4.5 Where the Works Information fits into the contract documents
4.6 Structuring the Works Information
4.7 Interface management
4.8 General rules in drafting the Works Information
4.9 Site Information

Appendix: Works Information clauses

A4.1 Works Information clauses

BOOK 3: Managing the contract

Preface
Foreword

Payment procedures in the Engineering and Construction Contract

1.1 Introduction
1.2 Payment procedure
1.3 How the ECC3 includes the HGCR Act 1996
1.4 The effects of Y(UK)2
1.5 Payment procedure on Completion
1.6 Payment procedure after Completion
1.7 Payment procedure after the defects date

Control of Time

2.1 Introduction
2.2 Terminology
2.3 What is the programme?
2.4 Definition of the Accepted Programme
2.5 The purpose of the Accepted Programme
2.6 What is included in the programme?
2.7 Submission of the first programme
2.8 How often is the programme revised?
2.9 Acceptance of the programme
2.10 Completion
2.11 Take over by the Employer
2.12 Acceleration
2.13 Other aspects of programming in the ECC

Control of quality

3.1 Introduction
3.2 The ECC and quality
3.3 The Contractor’s obligations
3.4 Role of the Employer’s representatives with respect to quality
3.5 Employer’s supply
3.6 Sub- contracting
3.7 Quality control
3.8 Defective work
3.9 Certification
3.10 Enforcement
3.11 NEC 3rd Edition

Disputes and dispute resolution

4.1 Introduction
4.2 How disputes arise
4.3 How the ECC seeks to reduce the incidence of disputes
4.4 Dispute resolution under the ECC
4.5 Adjudication – general comments and observations
4.6 NEC 3rd Edition

BOOK 4: Managing Change

Compensation events

1.1 Introduction
1.2 Compensation event procedure: background
1.3 What is a compensation event?
1.4 Where to find a list of compensation events
1.4.1 Core compensation events
1.4.2 Main Options B and D only
1.4.3 Secondary Options X14, Y(UK)2 and X15
1.4.4 Contract Data (part one)
1.5 Roles of the Project Manager and Contractor
1.6 Administering compensation events
1.6.1 Changes to the Completion Date
1.6.2 Changes to the Prices
1.6.3 Procedure for change
1.6.4 Cost of preparing for quotations
1.7 Notification of a compensation event
1.7.1 Proposed instruction or changed decision
1.7.2 Notification by the Project Manager
1.7.3 Notification by the Contractor
1.7.4 The four-point test
1.8 Quotations for compensation event
1.8.1 Introduction
1.8.2 When are quotations submitted?
1.8.3 Instructions for quotations
1.8.4 What is included in the quotation?
1.8.5 Acceptance of a quotation
1.9 Assessment of quotations
1.9.1 Assessment by the Project Manager
1.10 The use of the programme for the assessment of compensation events
1.10.1 Programmes which accompany compensation events
1.11 Implementation of compensation events
1.12 Reduction of Prices
1.13 Frequently asked questions
1.13.1 Eight-week barrier
1.13.2 Claims
1.13.3 Project Manager does not notify
1.13.4 Early warnings
1.13.5 Grouping compensation events
1.13.6 Amending the contract prior to execution
1.13.7 Removing compensation events
1.13.8 Adding compensation events
1.13.9 The Project Manager fails to act
1.14 Format of a compensation event quotation
Appendix 1 Compensation event procedure

Schedule of Cost Components

2.1 Introduction
2.2 What is the Schedule of Cost Components?
2.3 Why has this approach been taken?
2.4 Assessment options
2.5 When is the Schedule of Cost Components used?
2.5.1 Priced-based contracts – Options A and B contracts
2.5.2 Cost-based contracts – Options C, D and E contracts
2.5.3 Option F contracts
2.5.4 SCC summary
2.6 Defined Cost
2.7 The Fee
2.7.1 The Fee
2.8 The components of cost included under the full Schedule of Cost Components
2.8.1 Working Areas
2.8.2 Cost component heading 1: People
2.8.3 Cost component heading 2: Equipment
2.8.4 Cost component heading 3: Plant and Materials
2.8.5 Cost component heading 4: Charges
2.8.6 Cost component heading 5: Manufacture and fabrication outside the Working Areas
2.8.7 Cost component heading 6: Design outside the Working Areas
2.8.8 Cost component heading 7: Insurance
2.8A The components of cost included under the shorter Schedule of Cost Components (SSCC)
2.9 Contract Data part two
2.10 Putting it all together for payment – Option C
2.11 Audits
2.11.1 Compensation events
2.11.2 Options C, D and E
2.12 Use of the Shorter Schedule of Cost Components
2.12.1 People
2.12.2 Equipment
2.13 Practical issues
2.13.1 Working on multiple projects on the same site
2.13.2 Example of the principles of the assessment of change
2.13.3 Omissions
2.13.4 Project Manager’s assessment
2.13.5 Numerous small compensation events
2.13.6 Issue of Site Information drawings
2.13.7 Occasions when Defined Cost is not used
2.14 Preliminaries and people costs
2.14.1 Introduction

Appendix 2
Section A: Based on the full Schedule of Cost Components
Section B: Based on the shorter Schedule of Cost Components
Section C: Based on rates and lump sums
Appendix 3 Example people cost calculations
Appendix 4 Comparison between traditional preliminaries build-up and how they relate to SCC and SSCC
Appendix 5 Interrelationship between Contractor’s and Subcontractor’s share on target cost contracts

Index

BOOK 5: Managing Procedures

Preface
Foreword

ECC Management: Procedures

1.1 Introduction
1.2 Records to maintain
1.3 Review meetings
1.4 Contract administration
1.5 Practical administration
1.6 How to manage an ECC

About the Author

Bronwyn Mitchell Bcom (Hons) BProc MBA MCIPS MCIArb has been involved with the NEC since 1995 and has drafted hundreds of contracts based on the NEC. She was also involved in drafting various documents which were used in developing formal NEC contracts and publications. Bronwyn acts as a trainer and consultant in the use of all NEC contracts.

Barry Trebes FRICS BSc (Hons) MSc FAPM FInstCES is a Project Director with Mott MacDonald. Since 1983, his experience has ranged across a wide variety of projects including airport, rail, water, power and commercial developments and includes, most notably, the Stansted Airport development, the Heathrow Express Rail Link, CTRL, East London Line and a number of PFI/PPP contracts including the LUL PPP Contract. His first encounter with the NEC was in 1992 as senior commercial manager on the Heathrow Express Rail Link project working as a consultant for BAA plc (the earliest major user of NEC). Barry’s immense experience of NEC projects has led to him providing training and mentoring to clients, contractors and professional organisations throughout the industry. As Managing Director of Needlemans he initiated in 1998 the first ever web system named Contract Change Management (CCM) for the management of NEC contracts with MPS Limited. He is also co-author of BSI PD BS 6079 part 4 Project Management in the Construction Industry.

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