Spotlight on NEC

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Training materials
  • Audio The NEC - Definitely maybe...?
    This seminar discusses recent case law on the NEC, and its implications for those working with the NEC on a daily basis.

    5 August 2016

NEC3 experts give their views
  • Video Introducing Rob Horne, NEC expert
    Simmons & Simmons partner Richard Dyton introduces fellow partner Rob Horne who identifies some key issues arising from the use of the NEC form of contract and how they might be addressed.

    16 August 2016

  • Video Introducing Ian Heaphy, NEC expert
    Rob Horne introduces Ian Heaphy, director at IN Construction Consulting, who identifies key issues arising from the use of the NEC form of contract and how they might be addressed.

    16 August 2016

  • Video Introducing Ewen Maclean, NEC expert
    Rob Horne introduces ​Ewen Maclean, director at Blackrockpm, who identifies key issues arising from the use of the NEC form of contract and how they might be addressed.

    16 August 2016

  • Video Introducing Jon Broome, NEC expert
    Rob Horne introduces Jon Broome, managing consultant at Leading Edge Project Consulting, who identifies key issues arising from the use of the NEC form of contract and how they might be addressed.

    16 August 2016

Overview of the NEC
Obligations under the NEC
  • Video Do 13.1 and 13.7 really work effectively?
    ​For most major project communications are the key ingredient for success. Do the definitions and applications of communications in the NEC enable or prevent effective communication?

    10 November 2016

  • Video Provide the Works seems like a simple concept, is it?
    Understanding what is covered by the contract and what operations are to be carried out. The NEC defines this as to Provide the Works, but is it simple to apply in practice?

    10 November 2016

  • Video If the PM instructs the removal an employee who bears the risk of replacement?
    Stability in a project team is important to long term relationship building and managing common goals to achieve optimum outcomes. If someone is removed at the instruction of the Project Manager there is a risk to the project, but whose risk is it?

    10 November 2016

  • Video Is there really a difference between “approved” and “accepted”?
    ​Approved and accepted sound very similar. One is used in the NEC the other is not. Is this just a matter of semantics or is there an important point of principle underlying this choice of words. What does it mean to “accept” under the NEC and are there any particular consequences?

    23 November 2016

  • Video Who controls a risk reduction meeting?
    Part of the Early Warning process under the NEC is the risk reduction meeting. Primarily it is a means to discuss and track the risks which have been identified and notified under the contract. Who is best placed to manage the meeting and the resultant risk register? What happens if someone refuses to attend and how can that be managed?

    23 November 2016

  • Video Should early warnings be contractual obligations?
    ​An early warning is a very practical tool to help a project run smoothly and generate opportunity to identify problems and avoid them or mitigate their impact. Does that process work better when it has contractual teeth or should it be a tool to enable collaboration without risk of loss if it is not operated properly.

    23 November 2016

NEC payment issues
  • Video Why aren’t Options B and D used much?
    There is a clear preference in the UK market for Options A and C, is there a contractual, legally, technical, or practical reason for that? Do these forms offer alternatives that are being missed?

    20 December 2016

  • Video Is there a Final Account mechanism under the NEC?
    When you get to the end of the contract a key question is the tally up of how much it has cost against how much it was planned to cost. How does the NEC achieve this? Is this one area where it is process light compared to other contracts? Why might that be?

    20 December 2016

  • Video The Schedule of Cost Components is really complicated, why not just use rates?
    One of the innovative approaches of the NEC was to provide more definition around what amounts to recoverable “cost” under the contract in the form of a schedule of cost components. Is it really worth the trouble though?

    5 January 2017

  • Video Why do Options C, D, and E allow the PM to disallow costs?
    ​Disallowed cost is a subject that makes almost everyone, no matter which side of the contract they sit on, slightly hot under the collar. Why is it really needed under some forms of contract? Is there an alternative better approach? What happens when disallowed cost is wrongly applied?

    23 January 2017

  • Video How do I recover my subcontractors overheads as well as my own without double claiming or missing out?
    The NEC allows recovery of “Defined Cost” plus fee with each contract having a slightly different approach to the calculation of Defined Cost. How do you make sure that those definitions tie up with the supply chain so that no one is recovering extra percentage uplifts and therefore extra profit but equally no one is exposing themselves to risk of the unknown in pricing someone else’s fee.

    23 January 2017

  • Video Does the payment mechanism under NEC, led by the Project Manager, work efficiently?
    Most contracts assume the contractor will lead the payment application cycle with the certifier reviewing the application. Why is the NEC different in this regard in having the process led by the PM? Does that actually happen in practice and is the distinction important in any event?

    23 January 2017

NEC programme issues
  • Video Is an NEC programme just a bar chart?
    The programme is central to most process under the NEC but what exactly is the programme? If it isn’t just a bar chart what exactly is it or what could it include?

    8 February 2017

  • Video How much detail should the Programme include?
    For long and complex projects the programme can itself be complicated. How much information should anyone reasonably expect to see on a programme and does the distance away from “time now” matter? If things are further in the future is it ok to be a little more vague about them?

    8 February 2017

  • Video Is there an implied acceptance of programmes?
    ​Given how central the programme is to the NEC it must be important that everyone works to the same, up to date, version of it. What happens then if a contractor submits a programme and hears nothing back? Is it accepted or not, does it make a difference?

    8 February 2017

  • Video Float and time risk allowance are the same aren't they?
    Within the requirements for the content of an NEC programme is that it should show both time risk allowance and float. What are the practical and programming differences between the two? How do you make sure you show them and use them effectively?

    28 February 2017

  • Video Is the programme I submitted with a CE a revised programme under 32.2?
    The contract requires that any compensation event that is said to have an impact on planned Completion must be supported by the alterations needed to the Accepted Programme (62.2). Does that mean a new programme has to be submitted and if it does is that then the new Accepted Programme?

    28 February 2017

  • Video Are the programmes requirements of NEC too complicated?
    Clause 31.2 contains a very long list of must be included within a compliant programme, as a minimum and 32.1 adds to that for each update. Isn’t that really all too much particularly if the project is a relatively simple one?

    28 February 2017

NEC4
  • Spoiler alert: new (and) enhanced contract? NEC4
    We have waited 12 years but we are now just weeks away from the new suite of NEC contracts which will be known as NEC4. The NEC has issued a paper setting out some of the features of the new contracts, we summarise the key ones.

    15 March 2017

NEC Compensation Events

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.