Risk Allocation

I am working on NEC3 Option C contract.

Drawings are provided in our contract showing the existing utilities and the Drawings are Site Information as stated in the contract. There is a note in the Drawings stating that accuracy of the information is not guaranteed. I believe it is a kind of risk stated in the contract. According to ECC Clause 80.1, the foregoing risk is not one of the Employer’s risk.

If uncharted utilities is found on site which obstructing the construction and have impact on the planned Completion of the works.

Is it a Contractor’s risk or compensation event shall be notified by the Project Manager to instruct the Contractor to submit quotation under ECC Clause 60.1(12)?


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WKYIP, from what you describe it is an event that should be notified by the Contractor under clause 61.3, the Contractor is required to notify within 8 weeks of becoming aware of the event. Clause 60.2 should be read in conjunction with clause 60.1(12) as it details the assumption upon which the risk of physical conditions is based, namely; was it shown in the SI or in public records referred to in the SI? Could it be seen from a visual inspection? Could an experienced contractor have had or obtained information about it? If the answers to these questions are no, then it is a CE under 60.1(12) and the PM should notify under 61.4 that it is a CE and instruct the Contractor to submit quotations, etc.

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So the Project Manager cannot base on the note in the Drawings, “accuracy of the information is not guaranteed”, to say the Prices is not changed due to the uncharted utilities

@WKYIP the comment on the drawings is effectively a ‘no reliance’ provision in relation to a warranty of the accuracy of information. If sub-clause 60.3 remains in your contract then this could lead to an inconsistency, although the matter would still be determined as @stevebrownassociates has detailed.

Thank you for all of your valuable advice