The NEC4 Engineering and Construction Contract - ACommentary
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More About This Title The NEC4 Engineering and Construction Contract - ACommentary

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The authoritative guide to the NEC4 Engineering and Construction Contract

The New Engineering Contract (NEC) is one of the leading standard forms of contract for major construction and infrastructure projects. The latest edition of the contract (NEC4) is now a suite of contracts widely used in the UK, Australia, Hong Kong, South Africa, Ireland, and New Zealand. This timely and important book provides a detailed commentary on the latest edition of the main NEC4 Engineering and Construction Contract (NEC4 ECC) form. It explains how the contract is intended to operate and examines each clause to consider its application and legal interpretation. It also draws upon the author's highly successful third edition of the book covering the previous contract. It identifies and comments on the changes between the current and previous version of the form.  

After a brief introduction to the new edition of the form, The NEC4 Engineering and Construction Contract offers in-depth chapters covering everything from main options and secondary option clauses to risk assurances and NEC 4 family contracts. In between, readers will learn about general core clauses, the obligations and responsibilities of the contractor, testing and defects, payments, compensation events, and much more.

  • Covers the latest version of the NEC Engineering and Construction Contract, the leading standard form contract for major construction projects
  • Examines the new contract clause by clause and compares it with the previous edition
  • Previous editions were widely acknowledged as detailed and fair analyses of the NEC contracts
  • Written by a highly regarded contracts commentator, experienced arbitrator, and adjudicator

The NEC4 Engineering and Construction Contract: A Commentary is an excellent book for construction industry professionals working for clients, employers, main contractors, project managers, subcontractors, and specialist contractors.

English

BRIAN EGGLESTON CEng, FICE, FIStructE, FCIArb, was a chartered arbitrator with extensive UK and international experience and was past President of the Chartered Institute of Arbitrators. He acted as an adjudicator and mediator, as an adviser to contractors and employers on contractual matters and was a well-known author and speaker on contract law and standard forms. In a career spanning over 40 years he worked on all sides of the construction industry, firstly as a bridge designer, then as a resident engineer and contracts administrator, and subsequently as a director of various building and civil engineering contracting companies.

English

Preface

Author’s note                                                                                                                          

1 Introduction                                                                                                                       

1.1 Overview                                                                                                                    

1.2 Background                                                                                                                

1.3 Objectives

1.4 Impacts of change                                                                                                       

1.5 The NEC4 suite of Contracts                                                                                     

1.6 Characteristics of NEC Contracts                                                                             

1.7 Structure of the NEC4 Engineering and Construction Contract (ECC4)

1.8 Changes from ECC3 to ECC4

1.9 Review of points of interest

1.10 Entire Agreement

1.11 Exclusion of common law rights

1.12 Conditions precedent to compensation event claims

1.13 Role and powers of the Project Manager

1.14 Changes to Scope (previously Works Information)

1.15 Prevention

1.16 Quotations for compensation events

1.17 Assessments of compensation events

1.18 Dispute avoidance and dispute resolution

2 Changes from ECC3

2.1 Evolution

2.2 Features and Enhancements

2.3 Terminological changes

2.4 Changes to Core Clauses

2.5 Changes to Dispute Resolution Procedures

2.6 Changes in Secondary Option Clauses

2.7 Data Sheet changes

3 Main Options

3.1 Introduction

3.2 Contract strategy

3.3 Responsibility for design

3.4 Certainty of price

3.5 Allocation of risk

3.6 The Client’s requirements

3.7 Operating restrictions

3.8 Early start and /or rapid finish

3.9 Flexibility in contractual arrangements

3.10 Aversion to disputes

3.11 Single point responsibility

3.12 Option A -priced contract with activity schedule

3.13 Option B -priced contract with bill of quantities

3.14 Target contracts generally

3.15 Options C and D – target contracts                                                                              

3.16 Option E – cost reimbursable contract                                                                          

3.17 Option F – management contract                                                                                 

3.18 Options W1,W2, W3 – dispute avoidance and dispute resolution                               

4 Secondary Option clauses                                                                                                 

4.1 Introduction

4.2 Choice of secondary Option clauses

4.3 Status of secondary Option clauses                                                                               

4.4 Option X1 – price adjustment for inflation                                                                  

4.5 Option X2 – changes in the law                                                                                   

4.6 Option X3 – multiple currencies                                                                                   

4.7 Option X4 – ultimate holding company guarantee                                                       

4.8 Option X5 – sectional completion                                                                                

4.9 Option X6 – bonus for early completion                                                                      

4.10 Option X7 – delay damages

4.11 Option X8 – undertakings to the Client or Others

4.12 Option X9 – transfer of rights Option

4.13 Option X10 – information modelling

4.14 Option X 1l – termination by the Client                                                                         

4.15 Option X12 – multiParty collaboration                                                                          

4.16 Option X13 – performance bond                                                                                    

4.17 Option X14 – advanced payment to the Contractor                                                      

4.18 Option X15 – the Contractor’s design                                                                           

4.19 Option X16 – retention                                                                                                  

4.20 Option X17 – low performance damages

4.21 Option X18 – limitation of liability

4.22 Option X20 – key performance indicators

4.23 Option X21 – whole life cost

4.24 Option X22 – early Contractor involvement

4.25 Option Y(UK)1 – project bank account

4.26 Option Y(UK)2 – The Housing Grants, Construction and Regeneration Act 1996     

4.27 Option Y(UK)3 – The Contracts (Rights of Third Parties) Act 1999                           

4.28 Option Z – additional conditions of contract                                      

5 Contract documents                                                                                                          

5.1 Introduction                                                                                                                     

5.2 Entire agreements                                                                                                            

5.3 Clause 12.4 of ECC4

5.4 Construction of contracts generally                                                                                 

5.5 ECC4 documentation                                                                                                      

5.6 Essential contract documents                                                                                          

5.7 Identified and defined terms                                                                                           

5.8 The contract date                                                                                                             

5.9 Scope                                                                                                                               

5.10 Site Information                                                                                                             

5.11 Contract Data                                                                                                                

5.12 Schedules of cost components                                                                                       

5.13 Ambiguities and inconsistencies in the contract documents                                         

5.14 Schedule of clauses referring to the Scope                                                                    

6 Key players                                                                                                                        

6.1 Introduction                                                                                                                     

6.2 Others                                                                                                                              

6.3 Actions                                                                                                                             

6.4 Mutual trust and co-operation

6.5 The Client

6.6 Express obligations of the Client

6.7 The Project Manager                                                                                                        

6.8 Express duties of the Project Manager                                                                            

6.9 The Supervisor                                                                                                                 

6.10 Express duties of the Supervisor                                                                                   

6.11 Communications                                                                                                            

6.12 The Project Manager and the Supervisor                                                                       

7 General core clauses                                                                                                         

7.1 Introduction

7.2 Mutual trust and co-operation                                                                                         

7.3 Actions                                                                                                                             

7.4 Identified and defined terms                                                                                           

7.5 Interpretation and the law                                                                                               

7.6 Communications                                                                                                              

7.7 The Project Manager and the Supervisor

7.8 Instructions                                                                                                                      

7.9 Early warning                                                                                                                   

7.10 Contractor’s proposals

7.11 Requirements for instructions                                                                                        

7.12 Illegal and impossible requirements

7.13 Corrupt Acts                                                                                                                  

7.14 Prevention                                                                                                                      

8 Obligations and responsibilities of the Contractor                                                         

8.1 Introduction                                                                                                                     

8.2 Design obligations, responsibilities and liabilities                                                            

8.3 Providing the works                                                                                                         

8.4 The Contractor’s design                                                                                                   

8.5 Using the Contractor’s design                                                                                         

8.6 Design of equipment                                                                                                        

8.7 People                                                                                                                              

8.8 Working with the Client and Others                                                                               

8.9 Subcontracting                                                                                                                 

8.10 Other responsibilities

8.11 Assignment                                                                                                                    

8.12 Disclosure                                                                                                                      

8.13 Express obligations of the Contractor                                                                           

8.14 Express prohibitions on the Contractor                                                                         

9 Time (and related matters)                                                                                               

9.1 Introduction                                                                                                                     

9.2 Starting and completion                                                                                                   

9.3 Programmes                                                                                                                     

9.4 Revision of programmes                                                                                                  

9.5 Shortened programmes                                                                                                    

9.6 Access to and use of the site

9.7 Instructions to stop or not to start work

9.8 Take-over                                                                                                                         

9.9 Acceleration                                                                                                                     

10 Quality Management                                                                                                      

10.1 Introduction on quality management

10.2 Contractual provisions of ECC4 on quality management                                           

10.3 Understanding the contractual provisions on quality management                             

10.4 Introduction on testing and defects

10.5 Definitions and certificates

10.6 Tests and inspections                                                                                                   

10.7 Testing and inspection before delivery                                                                        

10.8 Searching and notifying defects                                                                                  

10.9 Correcting defects                                                                                                       

10.10 Accepting defects                                                                                                        

10.11 Uncorrected defects                                                                                                    

11 Payments                                                                                                                          

11.1 Introduction                                                                                                                   

11.2 Assessing the amount due                                                                                             

11.3 Payments                                                                                                                        

11.4 Defined cost                                                                                                                  

11.5 Payments – main Option A                                                                                            

11.6 Payments – main Option B                                                                                            

11.7 Payments – main Option C                                                                                            

11.8 Payments – main Option D                                                                                            

11.9 Payments – main Option E                                                                                            

11.10 Payments – main Option F                                                                                          

12 ECC4 compensation event schemes                                                                              

12.1 Introduction                              &n

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