PMI after Completion Date

NEC3 and NEC4 Contracts Compensation Events
1

On an NEC3 Option B - Can the Project Manager instruct new works after the contract Completion Date ? (assuming the works were completed before Completion Date). Can the Project Manager issue instructions for new works upto the Defects Date (in this case 52 weeks after Completion) ?

Cl.61.7 = “A Compensation event is not notified after the Defects Date”, would suggest that the PM can send further work instructions upto the Defects Date.
thanks

2

Any suggestions, much appreciated.

3

This question was asked on the NEC Q&A section, found here;

https://www.neccontract.com/NEC-in-Action/FAQs/Instructions-for-Additional-Works-After-Completion

In principle, however, I am NOT in agreement with the NEC’s response to this. If the works have been completed, subject to the correction of notified Defects, I would say that the Contractor has substantially discharged their primary obligation, which is to Provide the Works in accordance with the Works Information. It is further noted that the definition of Provide the Works relates to ‘doing the work necessary to complete the works’.

2 Likes
4

I would also add that the clause states that a compensation event cannot be “notified” after the defects date. A notification of an event has to be separated from all other communications (13.7). Therefore, surely the question isn’t whether they can notify a CE up to that point? it is whether they can issue an “instruction” up to the defects date? As it is the instruction in 14.3 that changes the WI and not the notification in 60.1.

11.2 (2) defines Completion as when the Contractor has done all the work which the Works Information states he is to do by the Completion Date. Clause 30.2 states that the PM decides the date of Completion which he cannot do until the definition in 11.2 (2) has been satisfied.

There is no clause allowing the PM to retract a Completion certificate (unless an amendment is placed in Z clauses). So how can a PM instruct after Completion has been certified? as this would surely mean that not all of the works have been completed, and would this also mean that the certificate has not been issued in accordance with the contract? Which brings in 10.1 which states the PM must act as stated in the contract.

2 Likes