There is no such thing as concurrency under an NEC Contract!
That is a bold statement isn’t it, but broadly speaking I believe this to be true. It is other forms of contract that use this term, but then not that uncommon for a Client to introduce concurrency as a Z clause to try to incorporate into an NEC contract as a sweeping statement. What does […]
Clause 63.1 and “actual” versus “forecast” Defined Cost when assessing a compensation event
It appears to be a quite common misconception that if compensation event works have been carried out and the quotation not been agreed, that the quote should be assessed based upon actual cost. This is not correct and could encourage some quite negative behaviours from either party if they thought it may benefit them to […]
Covid-19 Compensation Event clause
Before we knew anything about Covid-19, the effects would be claimable by the Contractor as a compensation event under clause 60.1(19) as a “force majeure” type event. However, we all know about Coronavirus now as a potential future risk, so it is less likely to fall under that category as being a compensation event. That […]
Removal of compensation events as a Z clause
I have seen a run of different amendments recently where Employers are removing some of the reasons that the Contractor can claim a compensation event i.e. deleting some of the reasons in clause 60.1. The Employer is obviously “allowed” to make any changes they want accepting that it will alter the Contractors risk profile […]
Assessing compensation events – which programme should you use?
NEC newsletter 61 Programme article Which programme do you use to assess compensation events? This is a common problem that occurs on projects and is an area that either the contract or the guidance notes could be more definitive in terms of how this should be carried out. This article that was published in edition […]
Think before you Z clause…
The NEC contracts are intended to be concise and where necessary employers can add additions to it or amend the existing conditions to suit their requirements within their organisation or within their industry. Do remember however that the NEC contracts were 8 years in development and now 17 years in existence, during which period the contract […]