A Practical Guide to the NEC3 Engineering and Construction Contract / Edition 1

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Launched in 1991, the New Engineering Contract (NEC) has become one of the UK's leading standard forms of contract for major construction and civil engineering projects. Currently in the third edition, popularly known as NEC 3, it is a process based construction contract embodying project management best practice, and thus the basic philosophy behind the contract is different to the more adversarial principles and approach of other standard construction contracts. Written as a practical guide to the application of the procedures contained in NEC 3, this book will aid users in the transition from their use and understanding of the other standard construction contracts to the collaborative project management based approach of the ECC. Written for anyone working in the construction industry working on a project under the ECC, it will be of interest to the complete construction supply chain including employers, construction professions, contractors and sub-contractors. It will also be of interest to consultants and lawyers advising any of these parties, either in the preparation of contract documentation or the resolution of problem situations which may arise.
• A practical guide to the application of the procedures contained in the NEC Engineering and Construction Contracts
• Written specifically for people actually using and administering the NEC contracts — rather than lawyers
• Covers all the variations created by the Main and Secondary Options

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Editorial Reviews

From the Publisher
"An experienced surveyor and builder now a consultant in Oxfordshire, Rowlinson offers both novice and experienced negotiators a guide to the third edition of the New Engineering Contract Engineering and Construction Contract." (Booknews, 1 June 2011)
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Product Details

  • ISBN-13: 9781444336887
  • Publisher: Wiley
  • Publication date: 4/19/2011
  • Edition number: 1
  • Pages: 320
  • Product dimensions: 6.90 (w) x 9.70 (h) x 1.10 (d)

Meet the Author

Michael Rowlinson MSc, DipArb, MRICS, FCIOB, FCIA, FCICES, is a director of Alway Associates, Construction Contracts & Commercial Consultants based in Banbury, Oxfordshire. He is an experienced construction professional, having qualified initially as a Chartered Quantity Surveyor and later as a Chartered Builder. After over 20 years with private practice and contractors Michael joined Alway Associates in 1998, specialising in Construction Contracts and Law. As part of his work Michael has lectured extensively for the Construction Study Centre and direct for his own clients, predominantly on the NEC suite of Contracts. He has written a number of articles on this suite of contracts which have been published in the Civil Engineering Surveyor and the NEC User Group's Newsletter, as well as on Alway Associates website.

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Table of Contents

1 Introduction.

1.1 General.

1.2 Mechanics not law.

1.3 A simple formula for understanding a contract.

1.4 Mandatory or discretionary.

1.5 Conditions precedent.

1.6 Note on use of upper case in key words and phrases.

2 Background to the NECECC.

2.1 The background: First edition.

2.2 The second edition.

2.3 The third edition.

2.4 Endorsement of NEC3 by the Office of Government Commerce.

2.5 General philosophy: Aims and objectives.

2.6 Flexibility.

2.7 Clarity and simplicity.

2.8 Stimulus to good management.

2.9 Other characteristics.

3 The Options: An Overview.

3.1 General arrangement of the ECC.

3.2 Other documents referred to.

3.3 Contract Data.

3.4 The published documents.

3.5 Main Options: General outline.

4 'Spirit of Mutual Trust and Cooperation.'

4.1 Introduction.

4.2 Core clause 10.1.

4.3 What does it mean?

4.4 Practical issues.

5 The Cast of Characters.

5.1 Introduction.

5.2 The Employer.

5.3 The Project Manager.

5.4 The Supervisor.

5.5 The Contractor.

5.6 The Adjudicator.

5.7 Subcontractors.

5.8 'Others.'

5.9 Designers.

5.10 CDM Coordinator.

5.11 Principal Contractor.

5.12 Practical issues.

6 Communications, Early Warnings and other General Matters.

6.1 Introduction.

6.2 Communications: The clause.

6.3 Communications: Practical issues.

6.4 Early warnings: The clause.

6.5 Early warnings: Practical issues.

6.6 Other matters: The clauses.

6.7 Other matters: Practical issues.

7 The Contractor’s Main Responsibilities.

7.1 Introduction.

7.2 Providing the Works.

7.3 Contractor's design.

7.4 Other matters.

7.5 Practical issues.

8 Subcontracting.

8.1 Introduction.

8.2 Definition of a Subcontractor.

8.3 The core clauses.

8.4 Provisions in the Main Options.

8.5 Practical issues.

8.6 Options for forms of subcontract in the NEC3 family.

9 Testing and Defects.

9.1 Introduction.

9.2 Tests and inspections.

9.3 What is a Defect?

9.4 The Defect procedure.

9.5 The Defects Certificate.

9.6 Uncorrected Defects.

9.7 Practical issues.

10 Title.

10.1 Introduction.

10.2 The core clauses.

10.3 Practical issues.

11 Risks and Insurance.

11.1 Introduction.

11.2 The core clauses.

11.3 Practical issues.

12 Time.

12.1 Introduction.

12.2 The programme: Contents.

12.3 The programme: Submitting, accepting and revising.

12.4 The programme: Practical issues.

12.5 Starting and finishing.

12.6 Other matters.

12.7 Secondary Options related to Time.

12.8 Practical issues.

13 Payment.

13.1 Introduction.

13.2 The payment process.

13.3 Payments in multiple currencies.

13.4 The amount due and the Price for Work Done to Date.

13.5 Supporting documents and records.

13.6 The Contractor’s share.

13.7 The Contractor's share: Practical issues.

13.8 Special provisions for the UK.

13.9 Related Secondary Options.

13.10 Practical issues.

14 The Schedules of Cost Components.

14.1 Introduction.

14.2 The Schedule of Cost Components.

14.3 The Shorter Schedule of Cost Components.

14.4 Application to Subcontractors.

14.5 Practical issues.

15 Compensation Events: Theory and Events.

15.1 Introduction.

15.2 The theory.

15.3 The events.

15.4 Practical issues.

16 Compensation Events: Procedures.

16.1 Introduction.

16.2 Notification by the Project Manager.

16.3 Notification by the Contractor and the Project Manager's reply.

16.4 Other matters associated with notifying compensation events.

16.5 Quotations: Substance.

16.6 Quotations: Submission and reply.

16.7 Assessments by the Project Manager.

16.8 Implementing compensation events.

16.9 Practical issues.

17 Compensation Events: Assessment.

17.1 Introduction.

17.2 Changes to the Prices.

17.3 Changes to the Completion Date and any Key Dates.

17.4 Project Manager's assumptions.

17.5 Other related matters.

17.6 Practical issues.

18 Termination.

18.1 Introduction.

18.2 Reasons for termination.

18.3 Implementing termination.

18.4 Procedures after termination.

18.5 Assessing the amount due after termination.

18.6 Practical issues.

19 Dispute Resolution.

19.1 Introduction.

19.2 Option W1.

19.3 Option W2.

19.4 Practical issues.

20 Secondary Options.

20.1 Introduction.

20.2 X2: Changes in the law.

20.3 X4: Parent company guarantee.

20.4 X12: Partnering.

20.5 X13: Performance bond.

20.6 X17: Low performance damages.

20.7 X18: Limitation of liability.

20.8 X20: Key Performance Indicators.

20.9 Y(UK)3: The Contracts (Rights of Third Parties) Act 1999.

20.10 Z: Additional conditions of contract.

20.11 Practical issues.

21 Completing the Contract Data.

21.1 Introduction.

21.2 Purpose and form of the Contract Data.

21.3 Part One: Data for the core clauses.

21.4 Part One: Data for the Main Option clauses.

21.5 Part One: Data for the Secondary Option clauses.

21.6 Part Two: Data for the core clauses.

21.7 Part Two: Data for the optional statements.

21.8 Part Two: Data for Main Options A or B.

21.9 Part Two: Data for Main Options C, D or E.

21.10 Practical issues.

22 The Supporting Documents: Need and Content.

22.1 Introduction.

22.2 Works Information.

22.3 Site Information.

22.4 Practical issues.


Appendix 1 Tables of Clause Numbers, Case Law and Statutes.

Appendix 2 Tables of Employer's, Project Manager's, Supervisor's, Contractor's and Adjudicator's Actions.

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