Webinar - First Thursday Forum Live Q&A

This topic is for all questions raised on our webinar “First Thursday Forum Live Q&A NEC ”. If you haven’t already attended it, you can sign up here https://www.builtintelligence.com/collections/webinars-events-and-webclasses/products/webinar-first-thursday-forum-nec-live-q-a

These live Q&A sessions or Drs surgeries promise to be lively, interactive and interesting for all our Construction Professionals with a fabulous panel of industry experts who will debate and respond to users live questions.

You’ve heard that you should “act in a spirit of mutual trust and cooperation,” but how do you reconcile this with acting “as stated in the contract”, it’s time this dual mantra became everyday practice. If you’re unsure when to raise an Early Warning – or stumped about NEC contract management in general – then join @stevencevans, @chriscorr and @JackWright for some lively debate.

What you’ll learn:

This webinar is directed by real users questions. Here is a sample of the questions that we could be covering:

  • What’s meant by “good faith” and how does it work with clause 10.1?
  • How do I deal with a PM who’s complaining I am too contractual?
  • When is it too late to raise Early Warnings?
  • How do you deal with indecisive PMs?
  • Tips for successful team building
  • How you can keep on top of the daily obstacles that get in the way of managing NEC contracts right

So if you have a burning question or construction conundrum which can be anything from a dispute to a contractual query then please do submit it below, you never know, it may make it onto the show.

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If there is an obvious error and an element in the schedule of cost components omitted in the PM’s assessment of a CE (as a result of a change) how can it be corrected after it is implemented if the PM refuses to do so?

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I’ve only just spotted this conversation. I’ve submitted my question via email, but I’ll repeat it here:

In the NEC4 PSC Option C, clause 11.2 (18) says that “the cost of correcting Defects after Completion” is a Disallowed Cost.

  1. I’d like to understand why the cost of correcting Defects before Completion is not also a Disallowed Cost. Is it because a Defect (such as abortive work e.g. a survey that has to be re-done because it is incorrect) before Completion is not considered to be cost that “is incurred in order to Provide the Service”?

  2. For clarity, how would you feel about a Z clause that simply added “Correcting Defects” to the list of things that are Disallowed Cost?

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Has a procedure been accepted for recovery of COVID and BREXIT delays and costs under NEC4?
Assume clause 60.19 ?

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Answer porvided here to this questions - NEC3 ECC: Can a compensation event be revisited to correct a mistake?

Hayley this question and variants of it have been raised a few times, the following questions might be of interest to you - Search results for 'disallowed defects' - ReachBack

Can a quotation submitted outside Compensation Events mechanism contains Contractor’s assumptions?

The original quotation was issued from Subcontractor to main contractor which then the main contractor submitted to client as part of the cost of the original scope because the main contractor sublets part of the main job. My understanding is that as a client I will consider it as estimate not a quotation.

So the Disallowed Cost bullet point would read “Correcting Defects caused by the Consultant not using the skill and care normally used by professionals providing services similar to the service.”

There was not PM instruction for the main contractor to submit a quotation because it was not a CE. The PM issued a Task Request to trigger the main contractor to submit a Task Response under TSC NEC3 amended(remeasure option) against the Task Request from the original scope.

How have local authorities dealt with NEC 4?
JCT contracts had considerable amendments!

Hi @brodriguez as Steven Evans explained the application of the prevention provisions in ECC depends on the timely of when the contract was placed and what was known at the time. If you are entering into to a new contract it would be wise to clarify how the risk of future lockdowns for covid, delays on deliveries from brexit and other risks like this will be dealt with. Clause 60.1(19) will only offer limited support now to contractors. Here are some of the courses, webinars and support articles I mentioned on the call today. Hopefully some use useful reading - Search: 10 results found for "Coronavirus" | Built Intelligence

We have a unique case where before contract award the Client has got the preferred Contractor to do some advance works to de-risk the programme and in doing so has delayed the award significantly - beyond the 3 months of the tender Price validity. The Contractor has re-priced the works to understand the cost implications. The Contractor has not notified the Project Manager that he wants to be paid for the cost of repricing the works but includes that as part of Defined Costs under the advance works Scope.
Should the Project Manager accept the Contractor’s Defined Cost? In which case both Client and Contractor shares the ‘pain’ under the NEC4 Option C arrangement. Or should this cost be disallowed as there was no notification from the Contractor to the PM for its intentions.

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Hi Arbinder Thanks for the question. It will be very difficult to give you meaningful advice on this question without knowing quite a lot more information. I would suggest you get some dedicated advisors on board. It’s not clear if this initial work was done under an NEC contract or a verbal or written agreement between the Client and Contractor. I would suggest you start by clarifying with the Client/Contractor their understanding on whether this is in the scope of the NEC Contract or not. The PM does generally certify payment of the Contractor’s Defined Cost but there are a number of tests it needs to pass such as “it is incurred in order to Provide the Works”. This wording is from the first paragraph of the SoCC.