nec3 ciob presentation 17 april 2012

Engineering and

Construction Contract

NEC 3 Engineering and Construction Contract

Chartered Institute of Building

“ NEC3 – Programme Requirements, Meeting the

Obligations of the Contract & Methodology

Robert Paterson

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OBJECTIVES

• Requirements of the Accepted Programme

• Methodology - Submissions

• Compensation Event Procedures

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Introduction

Four versions of programme Submission

Tender programme (does not have to be compliant with

requirements of contract)

Clause 31 – First programme submitted for ‘Acceptance’

Clause 32 – Subsequent submissions of ‘Accepted Programme’

Clause 62 – Compensation Event Programme

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What is the ‘Accepted Programme’

Clause 11.2 (1)

‘The Accepted Programme is the Programme identified in

the Contract Data or is the latest programme accepted by

the Project Manager. The latest programme accepted by

the Project Manager supersedes previous Accepted

Programmes’

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Requirements of an Accepted Programme

Clause 31.2 requires the following to be included:

Starting date, access dates, Key Dates and Completion Date

Planned Completion

The order and timing of the operations which the Contractor plans

to do in order to Provide the Works

The order and timing of the work of the Employer and Others as

last agreed with them by the Contractor or, if not so agreed, as

stated in the Works Information

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Requirements of an Accepted Programme continued

The dates when the Contractor plans to meet each Condition

stated for the Key Dates and to complete other work needed to

allow the Employer and others to their work

Provisions for

Float

Time risk allowances

Health and safety requirements

The procedures set out in this contract

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The dates when, in order to Provide the Works in accordance with his

programme, the Contractor will need:

Access to a part of the Site if later than its access date

Acceptances

Plant and material and other things to be provided by the Employer and

Information from Others

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For each operation, a statement of how the Contractor plans to do

the work identifying the principal Equipment and other resources

which he plans to use and

Other information which the Works Information requires the

Contractor to show on a programme submitted for acceptance

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Main Option clauses:

Options A and C – 31.4 The Contractor provides information which

shows how each activity on the Activity Schedule relates to the

operations on each programme which he submits for acceptance

Option B, D and E – no additional requirements

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Option Clauses:

Option X5 – Sectional Completion

Z Clauses – additional programme related information may be

included in these clauses and it may be a requirement to pass

these obligations onto sub contractors

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Clause 31 – Programme for Acceptance

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Methodology – Programme Submission

Clause 32.1: The Contractor shows on each revised programme

The actual progress achieved on each operation and its effect

upon the timing of the remaining work

The effects of implemented compensation events and of notified

early warning matters

How the Contractor plans to deal with any delays and to correct

notified Defects and

Any other changes which the Contractor proposes to make to the

Accepted Programme

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Methodology – Programme Submission continued

Clause 32.2: The Contractor submits a revised programme to the Project

Manager for acceptance

Within the period for reply after the Project Manager has instructed

him to (Data Pt 1 – 1 General bullet point 11 Period of Reply)

When the Contractor chooses to and, in case

At no longer interval than the interval stated in the Contract Data

from the Starting Date until Completion of the whole of the works

(Data Pt 1 – 3 Time bullet point 3)

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Clause 32 - Revised Programme

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Reasons for not Accepting the Programme

Clause 31.3 – within two weeks of the Contractor submitting a

programme for acceptance, the Project Manager either accepts

the programme or notifies the Contractor of his reasons for not

accepting it. A reason for not accepting a programme is that

The Contractor’s plans which it shows are not practicable

It does not show the information which this contract requires

It does not represent the Contractor’s plans realistically

It does not comply with the Works Information

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Compensation Events

Clause 16 – Early Warnings (can be submitted by either party)

Clause 60 – The events that are compensation events are detailed in this

clause

Clause 61.1 - Project Manager issues a Project Managers Instruction or

changing a decision..

Clause 61.3 – Contractor notifies the Project Manager of an event.. (note

time limit of 8 weeks)

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Compensation Events continued

Clause 62 – Quotations for Compensation Events

Not all compensation events will provide entitlement to time, the effects

must be modelled to determine entitlement

The Contractor has 3 weeks to submit a quotation

The Project Manager has 2 weeks to reply to the quotation

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Clause 62 – Compensation Event Programme

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Clause 63.3 – A delay to the Completion Date is assessed as the length

of time that, due to the compensation event, planned Completion is later

than planned Completion as shown on the Accepted Programme..

Clause 63.6 – Assessment of the effect of a compensation event includes

risk allowances for cost and time for matters which have a significant

chance of occurring and are a Contractor’s risk under this contract

Clause 63.9 – If a change to the Works Information makes the description

of the Condition for a Key Date incorrect, the Project Manager corrects

the description. This correction is taken into account in assessing the

compensation event for the change to the Works Information

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Clause 64 – Project Managers Assessments (related to programmes)

Clause 64.1 – If when the Contractor submits quotations for a

compensation event, he has not submitted a programme, or alterations to

a programme which this contract requires him to submit, or

If, when the Contractor submits quotations for a compensation event,

the Project Manager has not accepted the Contractor’s latest

programme for one of the reasons stated in this contract

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Clause 65 – Implementing Compensation Events

Clause 65.2 – The assessment of a compensation event is not

revised if a forecast upon which it is based is shown by later recorded

information to have been wrong.

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Questions

nec3 ciob presentation 17 april 2012

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