This section is a reminder of some of the key Contractor’s responsibilities under the contract.
Clause 20.1 – A reminder that they provide the works in accordance with the Scope. This is a simple but very important clause, as anything not in accordance with the Scope that the Contractor is instructed to do will become a compensation event under clause 60.1(1).
Section 21 – Any elements of Contractor design have to be issued for acceptance and become accepted prior to proceeding with that element. These acceptance periods have to be included within the Contractor’s programme and often a matter that is overlooked. The Project Manager should respond within the period of reply (stated in contract data 1). Silence can NOT be treated as deemed acceptance, but non-response within the contractual timescale and the associated resultant cost is a compensation event under 60.1(6).
Section 24 – Contractor provides the Key People on the project that they committed to at tender stage, as this may well have been a factor on the Contractor being awarded the contract in the first place. Should the Contractor want to replace a Key Person either at the start or during the contract then a suitable replacement person of equally qualification/experience should be put forward for acceptance, and accepted prior to putting them on the project. This gives the Project Manager some control over the quality of the management for that project, particularly when the contract is a target cost or cost reimbursable type project (options C-F) and the Client retains partial or full risk on any Contractor’s underperformance.
Section 25 – Key Dates are reviewed more within the programme section of these guidance notes, but are dates within Contract Data part 1 that the Contractor has to have achieved a certain level or state of work to allow the Client to carry out their own element of work. These are separate to sectional Completions and will be liable to the Contractor reimbursing the Client for any cost that results from not meeting these dates. An important element therefore to understand if you have any on your project, and what the likely extent of implications there would be should the Contractor not meet them.
Section 26 – Similar to section 24 for key people, this requires the Contractor to submit the names of any Subcontractors that they plan to use and have them accepted prior to awarding them any work. It again gives the Project Manager some control in the event that they have concerns or reasons that they feel a subcontractor would not deliver in accordance with the Scope. These could be concerns over quality, safety or security. It should be noted that if a contractor does engage with a subcontractor using an NEC form of contract then the terms of engagement also have to be issued to the Project Manager for acceptance.