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A Practical Guide to the NEC3 Engineering and Construction Contract

A Practical Guide to the NEC3 Engineering and Construction Contract, ISBN 9781119032977, By Michael Rowlinson, Publisher John Wiley and Sons Ltd, Imprint Wiley-Blackwell
A Practical Guide to the NEC3 Engineering and Construction Contract


 
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Description
 
By: Michael Rowlinson
Edition: 2nd edition
Publisher: John Wiley and Sons Ltd
Imprint: Wiley-Blackwell
ISBN: 9781119032977
Format: Hardback
Pagination: 360 pages, illustrations
Pub Date: 30/12/2015

A Practical Guide to the NEC3 Engineering and Construction Contract

Written as a practical guide to the application of the procedures contained in NEC 3, this book will aid users in the transition from their use and understanding of the other standard construction contracts to the collaborative project management based approach of the ECC.

Launched in 1993, the NEC Engineering and Construction Contract has become one of the UK s leading standard forms of contract for major construction and civil engineering projects. The third edition, popularly known as NEC3, is a process based contract embodying project and commercial management best practice, so its basic philosophy differs from the more adversarial approach of other standard construction contracts.

Since the first edition of this book, the third edition of the contract has seen the introduction of a new secondary option for use in the UK and amendments to a number of clauses. In addition, in September 2011, changes were introduced to cater for the amendments to the Housing Grants, Construction and Regeneration Act 1996 contained in the Local Democracy, Economic Development and Construction Act 2009, which became effective for all new contracts entered into from 1 October 2011. These amendments have been incorporated into the text.

A Practical Guide to the NEC3 Engineering and Construction Contract will be useful to everyone in the construction industry working on a project under this contract. It will be of interest to the complete construction supply chain, including employers, construction professions, contractors and sub-contractors, as well as consultants and lawyers advising any of these parties, either in the preparation of contract documentation or the day to day management or the resolution of problem situations which may arise.

Written for anyone working in the construction industry working on a project under the ECC, it will be of interest to the complete construction supply chain including employers, construction professions, contractors and sub-contractors. It will also be of interest to consultants and lawyers advising any of these parties, either in the preparation of contract documentation or the resolution of problem situations which may arise.
   A practical guide to the application of the procedures contained in the NEC Engineering and Construction Contracts
   Written specifically for people actually using and administering the NEC contracts – rather than lawyers
   Covers all the variations created by the Main and Secondary Options

• A practical guide to the application of the procedures contained in the NEC Engineering and Construction Contracts
• Written specifically for people actually using and administering the NEC contracts – rather than lawyers
• Covers all the variations created by the Main and Secondary Options

£75.00
Features
  • Table of Contents

    1 Introduction 1
    1.1 General 1

    1.2 Mechanics not law 2

    1.3 A simple formula for understanding a contract 3

    1.4 Mandatory or discretionary 4

    1.5 Conditions precedent 4

    1.6 Note on use of upper case in key words and phrases 5

    2 Background to the NECECC 7

    2.1 The background: First edition 7

    2.2 The second edition 8

    2.3 The third edition 9

    2.4 The third edition (re ]printed) 9

    2.5 Endorsement of NEC3 by the Office of Government Commerce 10

    2.6 General philosophy: Aims and objectives 11

    2.7 Flexibility 11

    2.8 Clarity and simplicity 11

    2.9 Stimulus to good management 12

    2.10 Other characteristics 13

    3 The Options: An Overview 15

    3.1 General arrangement of the ECC 15

    3.2 Other documents referred to 17

    3.3 Contract Data 18

    3.4 The published documents 18

    3.5 Main Options: General outline 19

    4 ‘Spirit of Mutual Trust and Cooperation’ 23

    4.1 Introduction 23

    4.2 Core clause 10.1 23

    4.3 What does it mean? 25

    4.4 Practical issues 26

    5 The Cast of Characters 29

    5.1 Introduction 29

    5.2 The Employer 29

    5.3 The Project Manager 31

    5.4 The Supervisor 33

    5.5 The Contractor 34

    5.6 The Adjudicator 35

    5.7 Subcontractors 36

    5.8 ‘Others’ 36

    5.9 Named Suppliers 37

    5.10 Designers 37

    5.11 Principal Designer 38

    5.12 Principal Contractor 39

    5.13 Practical issues 39

    6 Communications, Early Warnings and other General Matters 41

    6.1 Introduction 41

    6.2 Communications: The clause 41

    6.3 Communications: Practical issues 42

    6.4 Early warnings: The clause 45

    6.5 Early warnings: Practical issues 46

    6.6 Other matters: The clauses 49

    6.7 Other matters: Practical issues 52

    7 The Contractor’s Main Responsibilities 55

    7.1 Introduction 55

    7.2 Providing the Works 55

    7.3 Contractor’s design 57

    7.4 Other matters 58

    7.5 Practical issues 61

    8 Subcontracting 65

    8.1 Introduction 65

    8.2 Definition of a Subcontractor 65

    8.3 The core clauses 66

    8.4 Provisions in the Main Options 67

    8.5 Practical issues 67

    8.6 Options for forms of subcontract in the NEC3 family 68

    9 Testing and Defects 71

    9.1 Introduction 71

    9.2 Tests and inspections 71

    9.3 What is a Defect? 73

    9.4 The Defect procedure 73

    9.5 The Defects Certificate 75

    9.6 Uncorrected Defects 76

    9.7 Practical issues 77

    10 Title 81

    10.1 Introduction 81

    10.2 The core clauses 81

    10.3 Practical issues 82

    11 Risks and Insurance 85

    11.1 Introduction 85

    11.2 The core clauses 85

    11.3 Practical issues 88

    12 Time 91

    12.1 Introduction 91

    12.2 The programme: Contents 92

    12.3 The programme: Submitting, accepting and revising 97

    12.4 The programme: Practical issues 99

    12.5 Starting and finishing 108

    12.6 Other matters 111

    12.7 Secondary Options related to Time 114

    12.8 Practical issues 117

    13 Payment 121

    13.1 Introduction 121

    13.2 The payment process 121

    13.3 Payments in multiple currencies 124

    13.4 The amount due and the PWDD 124

    13.5 Supporting documents and records 134

    13.6 The Contractor’s share 138

    13.7 The Contractor’s share: Practical issues 139

    13.8 Special provisions for the UK 141

    13.9 Related Secondary Options 143

    13.10 Practical issues 148

    14 The Schedules of Cost Components 153

    14.1 Introduction 153

    14.2 The Schedule of Cost Components 153

    14.3 The Shorter Schedule of Cost Components 158

    14.4 Application to Subcontractors 159

    14.5 Practical issues 160

    15 Compensation Events: Theory and Events 165

    15.1 Introduction 165

    15.2 The theory 165

    15.3 The events 167

    15.4 Practical issues 182

    16 Compensation Events: Procedures 187

    16.1 Introduction 187

    16.2 Notification by the Project Manager 189

    16.3 Notification by the Contractor and the Project Manager’s reply 192

    16.4 Other matters associated with notifying compensation events 195

    16.5 Quotations: Substance 197

    16.6 Quotations: Submission and reply 199

    16.7 Assessments by the Project Manager 204

    16.8 Implementing compensation events 206

    16.9 Practical issues 207

    17 Compensation Events: Assessment 215

    17.1 Introduction 215

    17.2 Changes to the Prices 216

    17.3 Changes to the Completion Date and any Key Dates 220

    17.4 Project Manager’s assumptions 223

    17.5 Other related matters 224

    17.6 Practical issues 226

    18 Termination 229

    18.1 Introduction 229

    18.2 Reasons for termination 229

    18.3 Implementing termination 233

    18.4 Procedures after termination 234

    18.5 Assessing the amount due after termination 235

    18.6 Practical issues 237

    19 Dispute Resolution 239

    19.1 Introduction 239

    19.2 Option W1 240

    19.3 Option W2 243

    19.4 Practical issues 248

    20 Secondary Options 251

    20.1 Introduction 251

    20.2 X2: Changes in the law 251

    20.3 X4: Parent company guarantee 252

    20.4 X12: Partnering 252

    20.5 X13: Performance bond 257

    20.6 X17: Low performance damages 258

    20.7 X18: Limitation of liability 258

    20.8 X20: Key Performance Indicators 259

    20.9 Y(UK)3: The Contracts (Rights of Third Parties) Act 1999 260

    20.10 Z: Additional conditions of contract 260

    20.11 Practical issues 262

    21 Completing the Contract Data 263

    21.1 Introduction 263

    21.2 Purpose and form of the Contract Data 263

    21.3 Part One: Data for the core clauses 264

    21.4 Part One: Data for the Main Option clauses 268

    21.5 Part One: Data for the Secondary Option clauses 269

    21.6 Part Two: Data for the core clauses 273

    21.7 Part Two: Data for the optional statements 274

    21.8 Part Two: Data for Main Option A or B 275

    21.9 Part Two: Data for Main Option C, D or E 276

    21.10 Practical issues 278

    22 The Supporting Documents: Need and Content 283

    22.1 Introduction 283

    22.2 Works Information 283

    22.3 Site Information 293

    22.4 Practical issues 294

    Bibliography 297

    Appendix 1 Tables of Clause Numbers, Case Law and Statutes 299

    Appendix 2 Tables of Employer’s, Project Manager’s, Supervisor’s, Contractor’s and Adjudicator’s Actions 309

    Appendix 3 Tables of Communication Forms and Their Uses 337


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