NEC 3 Engineering & Construction Short Contract. (DESIGN & BUILD) Statutory authorities causing delays

We are currently working on a D&B housing scheme under NEC 3 Engineering & Construction Short Contract.

We have suffered delay after delay caused by the local water authority though no fault of our own. They had failed to carry out connection works outside our site for over 12 months.

We are currently on course to finish the project on time within the accepted programme, so we don’t need EOT or costs associated with this as we have a good working relationship with the client we don’t want to upset.

However, from the time we signed contract to the present day the local water authority has increased their connection/contribution charge substantially which we are required to pay.

Is there anywhere in the contract to allow us claim these increased costs as it is Design & Build?

1 Like

The monetary claim in relation to the increased connection charges, would fall under the compensation event (CE) process, within which both time and cost impact are assessed.

You would therefore be able to claim those costs as a result of a CE or CEs - e.g. if you have notified the delays caused by the Employer (assuming they are responsible for the water authority delays) the increased water charges would form part of the assessed cost impact. Long story short, without EOT (which would be assessed under a CE) I don’t see how you would be able to claim the increased (due to delay) water charges.

I suggest you speak to the Employer and arrange this to be done retrospectively - you will need the good working relationship though, because there is an 8-week time bar in the notification of CEs (from the time you became aware) unless they arise from an instruction.