NEC FAQs
NEC Miscellaneous FAQs

FAQ: Miscellaneous

Frequently asked questions around other aspects of NEC contracts not covered in our other categories.

I am unfamiliar with NEC contracts how do I navigate my way around them?

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Use the Index to the contracts to help you find the clause or thing that you are looking for. Also, remember that Defined Terms with Capital can be found in clause 11.2 in the core clauses and others are in the main and secondary options. Identified terms in italics are identified in the Contract Data.

Can the Project Manager change information in the Contract Data?

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No, only the Parties to the contract can change the Contract Data in writing under clause 12.3.

Some clauses appear not to have a period for reply for responses. For example clause 21.2 in relation to replying to design submissions by the Project Manager.

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Where no period is stated in a clause the default is the period for reply (as stated in a project’s contract data) unless stated otherwise. So, for the acceptance of design submissions in clause 21.2, no response period is stated so the default period for reply applies.

Can the Project Manager alter a Key Date?

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The Project Manager in clause 14.3 can give an instruction which changes a Key Date. The Key Date could change to an earlier or later date. Any such instruction would be assessed as a compensation event (60.1(4)).

Can the Project Manager withhold acceptance of a submissions?

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The Project Manager can withhold acceptance of a submission for any reason. Withholding, for a reason stated in the conditions of contract is not a compensation event. The classic example is clause 31.3 programmes submitted for acceptance. There are four stated reasons in the clause for withholding acceptance by the Project Manager. Withholding acceptance of the programme because planned Completion is later than the Completion Date is not one of the 4 stated reasons, and this is a compensation event under clause 60.1(9).

Can the Contractor change their key persons named in the Contract Data?

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Yes, under clause 24.1 the Contractor submits the name, relevant qualifications and experience of the proposed replacement person to the Project Manager for acceptance. Reasons for not accepting are that the replacement qualifications are not as good as the person to be replaced.

Does the Contractor have to obey instructions?

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Yes, the Contractor obeys an instruction which is in accordance with the contract and is given by the Project Manager or the Supervisor (clause 27.3).

Does the Contractor have to get Subcontractor’s accepted by the Project Manager?

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Yes, any Subcontractor must be issued for acceptance prior to them being appointed. In addition, the subcontract terms and conditions should also be issued for acceptance unless a back-to-back NEC contract is proposed.

The Contractor is not following their Quality Plan, is there anything that the Project Manager can do?

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The Project Manager may instruct the Contractor to correct a failure to comply with the quality plan. This instruction is not a compensation event.

Does the Contractor need to advise the Supervisor of its tests and inspections?

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Both the Contractor and Supervisor informs the other of each of their tests and inspections before the test or inspection starts and afterwards informs the results.

Does the Supervisor have to advise the Project Manager before they give an instruction to open up the works?

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No, the Supervisor is an independent role and they do not have to advise the Project Manager before they give an instruction to open up the works. However, it is considered good practice for the Supervisor to discuss such an instruction before they issue it with the Project Manager.

What happens if the Supervisor instructs the Contractor to search for a Defect and no Defect is found?

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If no Defect is found then this is a compensation event under clause 60.1(10) providing the Supervisor was given the chance to inspect before the works were covered up.

What title does a Contractor have to an object of value of or historical or other interest within the Site?

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The Contractor has NO TITLE, and they should inform the Project Manager of when such an object is found.

What title does the Contractor have to materials from excavations and demolition?

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The Contractor HAS TITLE unless otherwise stated in the Scope.

Can Equipment and Plant and Materials outside of the Working Areas be paid for?

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Yes, they can, if the contract identifies them for payment and the Contractor has prepared them for marking as the Scope requires.

What is the significance of take-over in clause 35?

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Take over signifies a transference of some liabilities back to the Client. Clause 80.1 main bullet six states that “loss of or damage to the parts of the works taken over by the Client except loss or damage occurring before the issue of the Defects Certificate”. The Client will need to ensure that they have the correct insurances in place at take over.

What are Contractor liabilities?

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Contractor liabilities are stated in clause 81.1, they include:
— Claims and proceedings from Other and compensation and costs payable to Others which arise from or in connection with the Contractor Providing the Works.
— Loss of or damage to the works, Plant and Materials and Equipment.
— Loss of or damage to property owned or occupied by the Client other than the works, which arise from or in connection with the Contractor Providing the Works.
— Death or bodily injury to the employees of the Contractor.

Whose responsibility it to check that the necessary insurance policies are in place?

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In clause 84 the Contractor submits their insurance policies to the Project Manager for acceptance and in clause 86 the Project Manager submits certificates of the Client’s insurance policy to the Contractor. Although, the Project Manager manages this process.

Is information in the Activity Schedule or Bills of Quantities Scope?

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No, information in the Activity Schedule and Bill of Quantities is NOT SCOPE or Site Information the contract it is highly recommended that the Project Manager seeks the advice of the Client’s insurance advisors before any acceptance are given.

Can the Client terminate at will?

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Yes, the Client can terminate for any reason if X11 has been selected.

Does the Contractor have to submit the Subcontractors pricing information?

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Yes, the Contractor submits the pricing information in the proposed subcontract documents for each subcontract to the Project Manager unless the Project Manager has agreed that no submission is required.

Do you have to submit a dispute arising under in connection with the contract to the Senior Representatives?

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If the HGCRA 1996 applies the Parties can agree to refer the dispute to the Senior Representatives. The Parties can go to adjudication AT ANY TIME.

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