Can the Employer appoint more than one PM on the same contract? In the same vein,can the PM delegate various aspects only of his role while he is still active in the others? If yes, how would notifications be regulated?
The role of the Project Manager (PM) is an ‘identified term’, which means that they are named in NEC ECC Contract Data Part 1.
The term Project Manager is also capitalised which means that it is a defined term, although the definition is not described in a single sub-clause but throughout the clauses of the contract.
The Employer / Client may replace the Project Manager from that named in Contract Data Part 1. In some instances the role of Project Manager has been identified by naming an organisation. This can clearly lead to confusion as to who the Project Manager may be, raising questions as to who actually has authority to undertake the specified duties.
The Project Manager may also delegate any of their actions, whilst still retaining authority for those actions. This would create a situation where more than one person has authority to act as Project Manager for specific actions.
Often an Employer’s / Client’s mandated corporate governance procedures impose restrictions upon the Project Manager’s delegation, such as authorisation limits. This could mean that procurement authority is required for the expenditure of risk, or contingency, budgets to ‘fund’ compensation events. Although this may ‘influence’ the Project Manager’s contractual actions it is a situation for the Project Manager and Employer / Client to resolve, to ensure compliant contract administration.
To track authorisation, a simple delegation schedule which lists the relevant clauses, identifies the role and states who is authorised to act (Project Manager and / or Supervisor etc) is a useful reference. This could be updated and notified from time to time, under sub-clause 14.2, where the delegation changes.
Thanks. Nicely put and comprehensive.On the passive side, presumably where an organisation / company is the “Project Manager” notifications ito NEC to the company should suffice for the Contractor’s purposes unless otherwise specified in the data or elsewhere in writing.
A communication is to be in writing (a form that can be read, copied and recorded) and delivered to the last address notified by the recipient for receiving communications.
Where an NEC communication is received, provided it has the Project Manager clearly associated with it (organisation or person) and given in accordance with the delegated authority then you would be entitled to act in good faith upon it.
For comparison the Contractor and Employer / Client are mostly named as an organisation and not a person, so a similar situation would arise in any dealings with them.