Hong Kong Institute of Construction Adjudicators, Public Consultation for the HKICAdj NEC4 Adjudication Rules, published 6 June 2019, accessed 30 May 2022 In NEC3 ECC, the SSCC can, by agreement, also be used to assess compensation events in options C, D and E.

Target cost contracts can be beneficial where the scope of work is not fully defined or where the risks anticipated are greater than usual. a new head of disallowed cost, applicable to costs incurred only because a failure to notify the PM of preparation for and conduct of adjudication with a subcontractor or supplier. Finally, be aware of bespoke amendments to the definition of “Defined Costs” as a number of public bodies have standard schedules of Allowed Costs which vary from the normal NEC definitions and failure to recognise this can create additional risk. 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 ] As with all NEC4 contracts, the parties to a PSC are required to act in a ‘spirit of mutual trust and co-operation’ and give early warnings of anything that could affect time, cost or usefulness of the service so it can be mitigated without delay.The NEC4 FMC suite includes the Facilities Management contract (FMC), subcontract (FMS), short contract (FMSC) and short subcontract (FMSS). [15] Plant and Materials – for all permanent works that are installed such as pipework, cladding, cabling etc This core clause also contains new clauses dealing with assignment and disclosure/confidentiality. These are welcome additions, but as the clauses are fairly short clients may wish to replace them with their own bespoke 'z' clauses, as is currently the case. Core Clause 3: time Disallowed Costs are defined in clause 11.2(26) and as the names suggest are costs that can be disallowed from what the Contractor is claiming each period. It is important therefore for everyone in the Contractor’s team to understand what these are so that they can avoid them being incurred and affecting the amount that they will be paid overall. Some of the more significant ones are costs that: a new value engineering reduction percentage clause 63.12, allowing the contractor to share in cost reductions obtained as a result of a contractor proposal;

The Contractor’s main responsibilities– detailed NEC’s requirements in respect of the provision of the Works, Contractor’s design, design of Equipment, people (key persons), working with the Client and Others, Subcontracting and other responsibilities. The core clauses (of the main option listed above) are used in conjunction with the secondary options and the additional conditions of contract. In addition, contract data has been simplified and the schedule of cost components has been changed Evans, S. C., NEC3 compensation events: a practical guide, published April 2013, accessed 13 June 2023 The new Core Clause 4 replaces the 'testing and defects' clause in NEC3. It introduces a new obligation for the contractor to produce a quality management system, set out in a quality policy statement, and a quality plan. These must be submitted for acceptance by the PM and comply with the scope.

Resolving and Avoiding Disputes

This is an abbreviated version of the ECC contract and most suitable when the contract is considered "low risk" (not necessarily low value) on a project with little change expected. This contract is still between the employer and contractor but does not use all of the processes of the ECC making it simpler and easier to manage and administer.