NEC - New Engineering Contract Flashcards
1
Q
Name 3 facts of NEC
A
- first published 1993
- a suite of contracts designed to promote partnering and collaboration between contractor and Client
- recommended in Latham Report 1994 (constructing the team)
2
Q
Name 3 intentions of NECs
A
- stimulate good management
- be clear and simple - in plain English, no legal terminology
- be useable in a wide variety of situations from minor to major projects
3
Q
NEC 3 published in 2005 suite of contracts include: (12)
A
- the engineering and construction contract
- the engineering and construction subcontract
- the engineering and construction short contract
- the engineering and construction short subcontract
- the professional services contract
- the professional services short contract
- term services contract
- term services short contract
- supply contract
- supply short contract
- framework contract
- the adjudicator’s contract
4
Q
Clause 10.1 states:
A
- ‘the employer, the contractor, the project manager and the supervisor shall act as stated in the contact and in a spirit of mutual trust and cooperation.’
5
Q
Name the core clauses (9)
A
- general
- the contractor’s main responsibilities
- time / programme
- testing and defects
- payment
- compensation events
- title
- risks and insurance
- termination
6
Q
Name the main contract options (6)
A
- priced contract with activity schedule (closest to fixed term lump sum price)
- priced contract with bill of quantities (contractor paid for amount of work done)
- target contract with activity schedule
- target contract with Bill of quantities
- cost reimbursable contract (favours contractor)
- management contract
7
Q
Contract administration facts (4)
A
- project manager carries out 90% of contract administration
- supervisor ensures quality complies with works information
- no QS or Architect identified
- certificates eg. Completion, defects, payment
8
Q
Communications - name 6 facts
A
- all communications take effect when received
- contractor and project manager to act within contract timescales - COMPENSATION EVENT if period runs over
- a notification is a separate communication - for defects, each has to be notified separately.
This potentially creates a huge amount of work - early warning by contractor for increase in total prices, delay in completion / key date and performance is key
- PM to enter early warning matters on risk register
- risk can be reduced through meetings with contractor
9
Q
Programme - an accepted programme is key to this contract type set out in Clause 31.2
Name contractor and PM duties (1 each)
A
- contractor submits programme to PM for acceptance
- PM has 2 weeks to accept or notify reason for non-acceptance
10
Q
What is a defect and when is the defects date?
A
- defect: anything which is not in line with works information
- defects date: end of notification period
11
Q
Defects certificate - time driven NOT work driven.
What are the contractors responsibilities? (2)
What are the Supervisor’s responsibilities? (2)
A
- contractor: prior to completion contractor to correct notified defects if it would prevent others doing there work (cl. 11.2C2)
- after completion: contractor to correct notified defects before the end of the defects correction period (cl.43.2) JCT CONTRACTS SHOULD INCLUDE THIS
- supervisor: May notify defect any time before defects date
- supervisor issues defects certificate at last correction period.
12
Q
Payment- name 1 supervisor duty and 1 Project Manager duty
A
- assess amount due at each assessment date and certify within 1 week of assessment date
- first assessment date decided by PM then in accordance with contract until 4 weeks after issue of defects certificate and full completion of works
13
Q
What does payment include? (3)
Amount due
A
- price of works done to date
- plus other amounts to be paid to contractor
- less amounts to be paid / retained from contractor eg. Delay damages
(Including any tax, VAT 20%)
