NEC3 Engineering and Construction Subcontract

CONTENTS
Foreword v
Preface vii
Acknowledgements ix
Amendments x
Schedule of Options 1
Core clauses 1 General 3
2 The Subcontractor’s main responsibilities 7
3 Time 9
4 Testing and Defects 11
5 Payment 13
6 Compensation events 15
7 Title 20
8 Risks and insurance 21
9 Termination 24
Main Option clauses A Priced subcontract with activity schedule 27
B Priced subcontract with bill of quantities 29
C Target subcontract with activity schedule 31
D Target subcontract with bill of quantities 34
E Cost reimbursable subcontract 38
Dispute resolution W1 Option W1 40
W2 Option W2 43
Secondary Option clauses X1 Price adjustment for inflation 46
X2 Changes in the law 47
X3 Multiple currencies 47
X4 Parent company guarantee 47
X5 Sectional Completion 47
X6 Bonus for early Completion 48
X7 Delay damages 48
X12 Partnering 48
X13 Performance bond 50
X14 Advanced payment to the Subcontractor 50
X15 Limitation of the Subcontractor’s liability for his design to 50
reasonable skill and care
X16 Retention 51
X17 Low performance damages 51
X18 Limitation of liability 51
X20 Key Performance Indicators 52
Y(UK)1 Project Bank Account 53
Y(UK) 2 The Housing Grants, Construction and Regeneration Act 1996 57
Y(UK) 3 The Contracts (Rights of Third Parties) Act 1999 57
Z Additional conditions of subcontract 57
Note Option X8 to X11 and X19 are not used
Schedule of Cost 58
Components
Shorter Schedule of Cost 61
Components
Subcontract Data 63
Index 76