Can a contract be utilised after a Final Account has been issued if further scope is requested?

Due to design changes a new plant item is now required to be manufactured and installed. The supplier we wish to use has already completed eight of these items, however, the subcontract has been final accounted (around two months ago).

Is it possible under the NEC 3 Supply Contract to issue a further CE utilising this contract or does the final account render this contract closed and a new contract will need to be formed.

Could a deed of variation be used?

Thank you for any and all help.

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Hi Daniel,

The first thing to note here is that there is no such thing as a “final account” under the NEC3 Supply Contract.

So the answer to this might depend on what exactly you mean by “final accounted”. If this was a formal agreement where you have signed off that the works are complete and the contract obligations are now at an end, then the answer to your question is probably no. i.e. you cannot just implement a change to the Goods Information as a CE.

However, if by “final accounted” you just mean a non-binding understanding of what the account is worth, but the rest of the contract is unaffected, then please read on.

Clause 61.7 of the NEC3 Supply Contract says that CEs are not notified after the last defects date i.e. you can notify new CEs right up to the last defects date. As such, the Purchaser could issue an instruction changing the Goods Information to include the new item, and you would deal with this as a CE in the normal way.

If the option above is not available due to this final account issue, then yes you could just implement this change via a deed of variation if needs be. Just make sure that it complies with the formality requirements of clause 12.3 i.e. an agreement in writing and signed by the Purchaser / Supplier.

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