By Brian Eggleston
Now on hand in Paperback
From its release in 1991 the hot Engineering agreement has speedily overtaken conventional development and civil engineering contracts to develop into the UK's prime typical shape for significant development initiatives. also, less than the universal identify NEC three, there's now a relatives of latest Engineering agreement typical forms.
This publication offers an in depth remark at the most recent version of the most shape - NEC three Engineering and building agreement. It explains how the agreement is meant to function and examines every one clause to think about its software and criminal interpretation. It attracts upon the author's profitable ebook at the moment version of the Engineering and building agreement, ECC 2, and it identifies and reviews at the alterations among ECC 2 and NEC 3.
Particular recognition is given to the revised repayment occasion strategies in NEC3, with 5 chapters of the ebook dedicated to this topic. In-depth research is usually given to:
- The function of the venture manager
- The responsibilities of the parties
- The liabilities of the parties
- The revised dispute answer procedures
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Extra resources for The NEC 3 engineering and construction contract : a commentary
Example text
This is intended to be what is traditionally known as a remeasurement contract. Subject to certain changes of detail in the clauses, Option B is not significantly changed from ECC 2. 2(28) which states that the price of the work done to date is the total of the quantity of work completed for each item in the bill of quantities multiplied by the rate plus a proportion of each lump sum as so completed Not everyone is persuaded, however, that Option B creates a remeasurement contract. There was a long-standing debate as to whether Option B of ECC 2 involved remeasure or simply entitlement to payment by reference to the quantities and rates in the bill of quantities.
1. This lack of any defined order of precedence together with the unusual ‘pick and mix’ arrangement of the clauses of NEC 3 may have some unintended effects. 2 Option X1 – price adjustment for inflation particular taking precedence over the general – is unlikely to apply as between core clauses and secondary clauses. So, whereas in a traditional contract special conditions of contract take precedence over standard conditions in the event of ambiguity or inconsistency, the position in NEC 3 appears to be that special conditions included as additional clauses under secondary option Z have no precedence over the core clauses.
But whatever is intended it probably remains the case that the greater the number of activities in the activity schedule, the greater the tasks of re-programming and assessing compensation events. To counter the problems in ECC 2, some employers adopted the practice of fixing themselves, by instructions to tenderers, the size of the activity schedule. Some may see this as a useful practice to retain when using NEC 3. 2(20) defining activity schedule. 2(22) refers to ‘Defined Cost’ in place of ‘Actual Cost’ • • • • • • and refers to the Shorter Schedule of Cost Components in place of the Schedule of Cost Components.