Contract Practice Summary of Experience

Question 1

NEC Options

Answer 1

A – Priced Contract with activity schedule
B – Priced Contract with BoQ
C – Target Cost with activity Schedule
D – Target Cost with BoQ
E – Cost Reimbursable Contract
F – Management Contract

Question 2

What was the time-frame to assess a compensation event on the Rolls Royce project you worked on

Answer 2

Section 5 of the NEC (21 day payment cycle) - The due date for normal payments is 7 days before the assessment date The final date for payment is 14 days from when it becomes due, or as otherwise stated in the Contract Data.

Question 3

NEC X Clauses

Answer 3

They allow parties to reallocate risk or deal with specific situations. X options can be used to address issues like delay damages (X7), design liability (X15), retention (X16), and limitations of liability (X18). They are typically included in the contract data to specify which X options are being used

Question 4

Final Account under NEC

Answer 4

Final assessment no later than four weeks after Defects Certificate or thirteen weeks after termination certificate (53.1)

Question 5

You stated you have advised on various contractual procedures/processes and clauses such as vesting certificates, delay damages and defined and disallowable costs, what advise was given?

Answer 5

Our PI stipulates that we do not advise on Delay Damages, but I informed the client that it needs to reflect a genuine pre-estimate of loss, and pointed them to the relevant clause (X7 in the contract (nec)

Question 6

On this project did you carry out valuations? Can you talk me through the process. What were the key timeframes?

Answer 6

Under JCT, I assessed the works applied for to ensure they were in line with the works carried out on site - The Interim Valuation Date is typically one month after the Date of Possession, or a date specified in the Contract Particulars. The due date is seven days after the Interim Valuation Date, and the final date for payment is 14 days after the due date (amended in our contract from the to 28 days)

Question 7

You have mentioned you have experiences with vesting certificates on the RR project. How did you assess materials off site and what was required to certify them under the contract

Answer 7

The certificate should clearly state who owns the materials, when payments were made, and who is responsible for insurance. Additionally, photographic evidence should show the materials are clearly labelled, inventoried, and stored separately