If during the execution of the Works the Contractor shall encounter physical conditions (other than weather conditions or conditions due to weather conditions) or artificial obstructions which conditions or obstructions could not in her/his opinion reasonably have been foreseen by an experienced contractor the Contractor shall as early as practicable give written notice thereof to the Engineer. Z clauses [ edit ] This contract is for anyone providing a service, rather than doing any physical construction works. Designers are the most obvious party that fit into this category. Whilst they are producing a design for a Client or Contractor, they would use the clauses and processes identified within the PSC. Most of the clauses within this contract are the same as that in the main ECC contract, so that all Contractors, Designers and Subcontractors have pretty much the same obligations and processes to follow as each other. NEC4 now also introduces a Professional Services Subcontract version so a Contractor can pass terms down to a Designer who is subcontracting to them. Framework Contract (FC)

In the early 1990s, the Government commissioned the Latham Report to review procurement and contractual arrangements in the UK construction industry. The report concluded that strategies should be adopted to: If the contractor encounters an event which they deem couldhave an impact on the price of works. They should issue an Early Warning Notification as soon as they become aware of that event. The NEC4 FMC suite includes the Facilities Management contract (FMC), subcontract (FMS), short contract (FMSC) and short subcontract (FMSS). [15] Clause 10.2: the parties and the service manager act in a spirit of mutual trust and cooperation. [17] The pain/ gain share is assessed by reference to the difference at completion of the works between the Total of the Prices and the Price for Work Done to Date.Very similar in detail and complexity of contractual requirements to the ECC contract above, but allows the contractor to sub-let the project to a subcontractor imposing most of the clauses that she/he has within her/his headline contract. There is very little difference between the ECC and the ECS, other than the names of the parties are changed (contractor and subcontractor) and some of the timescales for contractual responses are altered to take into account the timescales required in the ECC contract.

NEC3 contracts are a diverse range of definitive end-to-end project management contracts that empower users to deliver projects on time, on budget and to the highest standards.

Competitor Intelligence

Should Contractor price the Bill of Quantities or the Scope?: The Contractor only has the opportunity to price the items in the Bill of Quantities. Clause 20.1 obligates the Contractor to provide the works in accordance with the Scope. The Bill of Quantities is not Scope, so any ambiguities between an item in the Scope but not allowed for within the Bill of Quantities will need to be identified as an ambiguity in accordance with clause 17.1. This will require an instruction by the Project Manager to resolve the ambiguity, and assuming what is stated in the Scope is what is required, will need to correct the mistake within the Bill of Quantities (60.6). This should then also be confirmed as a compensation event under clause 60.7. The Contractor will be entitled to assess the cost and time implications that have resulted due to the error in the Bill of Quantities. NEC3 adopts a fundamentally different philosophy and practice to most other standard form construction or engineering contracts. Its three core underlying principles are: Should a Contractor point out any errors in the Bill of Quantities at tender stage? The overwhelming answer has to be “yes”. The Contractor may feel there could somehow be a commercial advantage to say nothing if they spot such an ambiguity, given it will be treated as a compensation event that they can potentially earn profit upon. It is, however, rarely easy to agree the value of compensation events, and it could also be putting significant pressure on a Client’s budget that they had not allowed for. It would therefore be better to avoid this scenario wherever possible, and pointing this out at tender stage could avoid arguments and give a Contractor good credibility during the tender process which may even help them win the tender.