NEC4: Understand The Differences

Courses Overview:

This 1 day course will provide delegates, already experienced in using the ECC, with a review of the contract in use at an advanced user’s level.

It will be particularly attractive to delegates who have already been on a Construction Study Centre’s NEC and NEC Compensation Events courses. It is necessary that delegates should have a detailed background and a working knowledge of the form.

The course will include pre-event conference calls to delegates to obtain their specific views as to course content. It will refer to worked examples, and include ‘tutorial’ type sessions and practical tips.

Benefits of this course:

Gain a more in depth understanding of the NEC contracts
Be cognisant of the radically different approach that NEC provides to contract
Understand the problems arising from not being proactive
Ability to share problems and queries
Benefit from a post seminar helpline facility

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Preparing the Tender
• Preparing the Works Information – a detailed consideration of all the factors that need to be included in the Works Information.
• Completing the Contract Data – a detailed review of the entries required in the Contract Data

How to make the Contract Data more User Friendly, and the Relevance of the Entries to the Terms
• Site information – content and significance
• Risk allocation
• Risk of price – the different arrangements and what they mean, the significance of fee etc.
• Signing the Contract
• Responsibility for ambiguities and conflict
• Risk and pricing risk
• Risk Register
• Tender Programme
• Development of the Activity Schedule under Options A and C

Contract Performance – Risk and Entitlement
• Design – standards and liability
• Ambiguity etc.
• Accepted Programme –time, risk and float
• ‘Events’ on programme
• Quality, quality control, contract standards and administration
• Early warnings and risk reduction
• Building `mutual trust and co-operation`
• Managing the Risk Register
• Gaining foresight – a co-ordinated view of the contents of the Accepted Programme
and its interaction with the Communication and Early Warning mechanisms
• KPI’s

Payment Mechanisms Main Options (A-F)
• Intricacies of different payment mechanisms. The 4 variations on how the payment mechanism works
• Detailed examination of the Schedule of Cost Components
• Assessing defined cost and disallowed costs
• Operating the mechanism
• Fee
• Interest
• Contractor’s share
• Timing of payment
• Bonus schemes
• KPIs
• Assessing defined cost and disallowed costs

Frequently Arising Problems/Queries
• What Clause 12.4 means – ‘entire agreement’ and its purpose
• Priority of contract documents
• Parties using a form of agreement
• Written notice of an event recovery of additional time and cost with no notice and prevention of completion by employer – How does the NEC3 address this
• Dealing with Provisional sums, allowing for uncertainties
• Programme – re float and time risk allowances
• Pre estimate of damages reversibility

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