NEC3 Engineering and Construction Contract Guidance Notes

Contents
Foreword vi
Preface vii
Acknowledgements viii
Amendments ix
Introduction 1
Background 1
Purpose of guidance notes 1
Objectives 1
Flexibility 1
Clarity and simplicity 2
Stimulus to good management 3
Subcontracts 5
Some other changes 5
Application of the ECC 6
The published documents 6
Arrangement of the ECC 6
The complete ECC 7
Flow charts 7
Merged versions 7
Clause numbering 7
Project organisation 8
Roles and duties 8
The Project Manager 10
Designers 11
The Supervisor 11
The Adjudicator 12
Contract strategy 13
Choosing the strategy 13
The main Options 13
Option A: Priced contract with activity schedule 14
Option B: Priced contract with bill of quantities 14
Option C and D: Target contracts (with activity schedule or bill of
quantities) 14
Option E: Cost reimbursable contract 15
Option F: Management contract 15
The dispute resolution procedure Options 16
The secondary Options 16
Choice of Options 16
Tender documents 18
Preparing the tender documents 18
Deciding the contracts 18
The tender documents 18
Form of tender 18
Contract Data 18
Activity Schedule 19
Bill of Quantities 20
Tender document in cost reimbursable contracts 21
Works Information 21
Site Information 23
Inviting and preparing tenders 24
Instructions to tenderers 24
Part two of the Contract Data 25
Assessing criteria 27
Procurement law 27
General law 27
Assessing target cost tenders 27
Assessing design and construct tenders 28
Assessing construct only tenders 28
Qualified tenders 28
Finalising the contract 29
Creating the contract 29
Explanatory notes 31
1 General 31
2 Contractor’s main responsibilities 40
3 Time 46
4 Testing and Defects 51
5 Payment 59
6 Compensation events 68
7 Title 82
8 Risks and insurance 84
9 Termination 88
Dispute resolution Options W1 and W2 92
Secondary Option clauses 101
Schedule of Cost Components 122
Engineering and 133
Construction Subcontract 137
Appendix 1 Clause numbering system 143
Appendix 2 Sample form of tender 144
Appendix 3 Sample form of agreement 146
Appendix 4 Model tender assessment sheet 148
Appendix 5 Contract Data – worked example