If an inconsistency exists between the Contract Data Part 1 and a Z clause, is there a contractual mechanism to resolve this (other than dispute resolution)?
If a compensation event occurs due to an ambiguity within the contract, then it is assessed in accordance with 63.8 which says it is assessed in favour of the party which did not create the ambiguity.
Thanks Glenn. Although my understanding in NEC4 is that a CE would only occur if an instruction to change the Scope in order to resolve an ambiguity was issued.
Since the ambiguity in this case doesn’t require an instruction changing the Scope, and instead would require a change to either the Contract Data or Z Clause, I thought that process would not apply?
Under NEC4, the first contract level of dispute resolution is by the senior management representative process.
This can include taking unbiased legal opinion to inform the resolution.
Yes I probably answered that one too quickly. 63.8 only applies to changes in Works Information. I guess it depends what it is, as some elements of contract data can be superseded e.g. Completion Date by implemented CE’s. Are you able to specify what in contract data is being contradicted in WI?
It relates to X16 where the Contract Data states a bond is to be provided at the Contract Date but conversely in the Z clauses, where X16 is amended, it states a bond is to be provided at the Completion Date.
That would appear to be a pretty obvious error and you would like to think that depending on what the bond was for it would be pretty obvious if it was intended to be provided at the beginning of the project or at the end of the project. That would be for the Parties to agree legally rather than any specific clause other than clause 12.3.