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E-grāmata: NEC4 Engineering and Construction Contract: A Commentary

(CEng, FICE, FIStructE, FCIArb, Registered Arbitrator)
  • Formāts: PDF+DRM
  • Izdošanas datums: 26-Feb-2019
  • Izdevniecība: Wiley-Blackwell
  • Valoda: eng
  • ISBN-13: 9781119478768
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NEC4 Engineering and Construction Contract: A CommentaryPalielināt
  • Formāts: PDF+DRM
  • Izdošanas datums: 26-Feb-2019
  • Izdevniecība: Wiley-Blackwell
  • Valoda: eng
  • ISBN-13: 9781119478768
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The authoritative guide to the NEC4 Engineering and Construction Contract

The New Engineering Contract (NEC) is one of the leading standard forms of contract for major construction and infrastructure projects. The latest edition of the contract (NEC4) is now a suite of contracts widely used in the UK, Australia, Hong Kong, South Africa, Ireland, and New Zealand. This timely and important book provides a detailed commentary on the latest edition of the main NEC4 Engineering and Construction Contract (NEC4 ECC) form. It explains how the contract is intended to operate and examines each clause to consider its application and legal interpretation. It also draws upon the author's highly successful third edition of the book covering the previous contract. It identifies and comments on the changes between the current and previous version of the form.  

After a brief introduction to the new edition of the form, The NEC4 Engineering and Construction Contract offers in-depth chapters covering everything from main options and secondary option clauses to risk assurances and NEC 4 family contracts. In between, readers will learn about general core clauses, the obligations and responsibilities of the contractor, testing and defects, payments, compensation events, and much more.

  • Covers the latest version of the NEC Engineering and Construction Contract, the leading standard form contract for major construction projects
  • Examines the new contract clause by clause and compares it with the previous edition
  • Previous editions were widely acknowledged as detailed and fair analyses of the NEC contracts
  • Written by a highly regarded contracts commentator, experienced arbitrator, and adjudicator

The NEC4 Engineering and Construction Contract: A Commentary is an excellent book for construction industry professionals working for clients, employers, main contractors, project managers, subcontractors, and specialist contractors.

Preface xv
Author's note xvii
1 Introduction
1(10)
1.1 Overview
1(1)
1.2 Background
1(1)
1.3 Objectives
1(1)
1.4 Impacts of change
2(1)
1.5 The NEC4 suite of contracts
3(1)
1.6 Characteristics of NEC contracts
3(1)
1.7 Structure of the NEC4 Engineering and Construction Contract (ECC4)
4(2)
1.8 Changes ECC3 to ECC4
6(1)
1.9 Review of points of interest
7(1)
1.10 Entire agreement
7(1)
1.11 Exclusion of common law rights
8(1)
1.12 Conditions precedent to compensation event claims
8(1)
1.13 Role and powers of the Project Manager
8(1)
1.14 Changes to Scope (previously Works Information)
9(1)
1.15 Prevention
9(1)
1.16 Quotations for compensation events
9(1)
1.17 Assessments of compensation events
9(1)
1.18 Dispute avoidance and dispute resolution
10(1)
2 Changes from ECC3
11(6)
2.1 Evolution
11(1)
2.2 Features and enhancements
11(1)
2.3 Terminological changes
12(1)
2.4 Changes to core clauses
12(3)
2.5 Changes to dispute resolution procedures
15(1)
2.6 Changes to Secondary Option clauses
16(1)
2.7 Data sheet changes
16(1)
3 Main options
17(15)
3.1 Introduction
17(1)
3.2 Contract strategy
18(1)
3.3 Responsibility for design
19(1)
3.4 Certainty of price
20(1)
3.5 Allocation of risk
21(1)
3.6 The Client's requirements
22(1)
3.7 Operating restrictions
23(1)
3.8 Early start and/or rapid finish
23(1)
3.9 Flexibility in contractual arrangements
23(1)
3.10 Aversion to disputes
23(1)
3.11 Single point responsibility
24(1)
3.12 Option A -- priced contract with Activity Schedule
24(1)
3.13 Option B -- priced contract with bill of quantities
25(2)
3.14 Target contracts generally
27(2)
3.15 Options C and D -- target contracts
29(1)
3.16 Option E -- cost reimbursable contract
30(1)
3.17 Option F -- management contract
31(1)
3.18 Options W1, W2, W3 -- resolving and avoiding disputes
31(1)
4 Secondary options
32(27)
4.1 Introduction
32(1)
4.2 Choice of Secondary Option clauses
33(1)
4.3 Status of Secondary Option clauses
33(1)
4.4 Option X1 -- price adjustment for inflation
34(1)
4.5 Option X2 -- changes in the law
34(1)
4.6 Option X3 -- multiple currencies
35(1)
4.7 Option X4 -- ultimate holding company guarantee
36(1)
4.8 Option X5 - sectional completion
36(1)
4.9 Option X6 -- bonus for early completion
37(1)
4.10 Option X7 --- delay damages
37(5)
4.11 Option X8 -- undertakings to the Client or Others
42(1)
4.12 Option X9 -- transfer of rights
42(1)
4.13 Option X10 -- information modelling
43(1)
4.14 Option X11 -- termination by the Client
43(1)
4.15 Option X12 -- MultiParty collaboration
44(1)
4.16 Option XI3 -- performance bond
45(2)
4.17 Option X14 -- advanced payment to the Contractor
47(1)
4.18 Option X15 -- the Contractor's design
48(1)
4.19 Option X16 -- retention
49(1)
4.20 Option X17 -- low performance damages
50(1)
4.21 Option X18 -- limitation of liability
51(4)
4.22 Option X20 -- key performance indicators
55(1)
4.23 Option X21 -- whole life cost
56(1)
4.24 Option X22 -- early Contractor involvement
56(1)
4.25 Option Y(UK)1 -- project bank account
57(1)
4.26 Option Y(UK)2 -- Housing Grants, Construction and Regeneration Act 1996
57(1)
4.27 Option Y(UK)3 -- Contracts (Rights of Third Parties) Act 1999
58(1)
4.28 Option Z -- additional conditions of contract
58(1)
5 Contract documents
59(20)
5.1 Introduction
59(1)
5.2 Entire agreements
60(1)
5.3 Clause 12.4 of ECC4
61(1)
5.4 Construction of contracts generally
62(1)
5.5 ECC4 documentation
63(1)
5.6 Essential contract documents
64(1)
5.7 Identified and defined terms
65(1)
5.8 The Contract Date
66(1)
5.9 Scope
67(3)
5.10 Site Information
70(2)
5.11 Contract Data
72(1)
5.12 Schedules of cost components
72(2)
5.13 Ambiguities and inconsistencies in the contract documents
74(1)
5.14 Schedule of clauses referring to the Scope
74(5)
6 Key players
79(25)
6.1 Introduction
79(2)
6.2 Others
81(1)
6.3 Actions
82(1)
6.4 Mutual trust and co-operation
83(1)
6.5 The Client
84(1)
6.6 Express obligations of the Client
85(1)
6.7 The Project Manager
86(3)
6.8 Express duties of the Project Manager
89(8)
6.9 The Supervisor
97(1)
6.10 Express duties of the Supervisor
97(1)
6.11 Communications
98(4)
6.12 The Project Manager and the Supervisor
102(2)
7 General core clauses
104(24)
7.1 Introduction
104(1)
7.2 Mutual trust and co-operation
105(1)
7.3 Actions
106(1)
7.4 Identified and defined terms
107(9)
7.5 Interpretation and the law
116(1)
7.6 Communications
117(1)
7.7 The Project Manager and the Supervisor
117(1)
7.8 Instructions
118(1)
7.9 Early warning
118(3)
7.10 Contractor's proposals
121(1)
7.11 Requirements for instructions
121(1)
7.12 Illegal and impossible requirements
122(1)
7.13 Corrupt Acts
123(1)
7.14 Prevention
123(5)
8 Obligations and responsibilities of the Contractor
128(29)
8.1 Introduction
128(3)
8.2 Design obligations, responsibilities and liabilities
131(2)
8.3 Providing the works
133(1)
8.4 The Contractor's design
134(3)
8.5 Using the Contractor's design
137(1)
8.6 Design of equipment
138(1)
8.7 People
138(2)
8.8 Working with the Client and Others
140(2)
8.9 Subcontracting
142(3)
8.10 Other responsibilities
145(2)
8.11 Assignment
147(1)
8.12 Disclosure
147(1)
8.13 Express obligations of the Contractor
148(7)
8.14 Express prohibitions on the Contractor
155(2)
9 Time (and related matters)
157(18)
9.1 Introduction
157(2)
9.2 Starting and completion
159(2)
9.3 Programmes
161(4)
9.4 Revision of programmes
165(2)
9.5 Shortened programmes
167(1)
9.6 Access to and use of the site
168(1)
9.7 Instructions to stop or not to start work
169(2)
9.8 Take over
171(2)
9.9 Acceleration
173(2)
10 Quality management
175(18)
10.1 Introduction on quality management
175(1)
10.2 Contractual provisions of ECC4 on quality management
176(1)
10.3 Understanding the contractual provisions on quality management
177(1)
10.4 Introduction on testing and defects
177(3)
10.5 Definitions and certificates
180(3)
10.6 Tests and inspections
183(3)
10.7 Testing and inspection before delivery
186(1)
10.8 Searching for and notifying defects
186(2)
10.9 Correcting defects
188(2)
10.10 Accepting defects
190(1)
10.11 Uncorrected defects
191(2)
11 Payments
193(22)
11.1 Introduction
193(3)
11.2 Assessing the amount due
196(2)
11.3 Payments
198(3)
11.4 Defined cost
201(1)
11.5 Payments -- Main Option A
202(3)
11.6 Payments -- Main Option B
205(1)
11.7 Payments -- Main Option C
206(4)
11.8 Payments -- Main Option D
210(1)
11.9 Payments -- Main Option E
211(1)
11.10 Payments-Main Option F
211(1)
11.11 Final assessment
212(1)
11.12 Status of and disputes on final assessments
213(2)
12 ECC4 compensation event schemes
215(8)
12.1 Introduction
215(2)
12.2 Structure of ECC4 compensation events schemes
217(1)
12.3 Amendments and additions
217(2)
12.4 Outline of procedures
219(1)
12.5 Defining a compensation event
220(1)
12.6 Compensation events as exclusive remedies
220(2)
12.7 Fairness of the compensation event procedures
222(1)
12.8 Unusual features of the compensation event procedures
222(1)
13 Listed compensation events
223(19)
13.1 Introduction
223(1)
13.2 Omissions from the listed events
224(1)
13.3 Scope-related events
224(2)
13.4 Client's default events
226(3)
13.5 Client's liability events
229(1)
13.6 Project Manager/Supervisor-related events
230(3)
13.7 Physical conditions
233(3)
13.8 Adverse weather
236(1)
13.9 Prevention
237(1)
13.10 Measurement-related events
238(2)
13.11 Secondary Option clause events
240(2)
14 Notifying compensation events
242(10)
14.1 Introduction
242(1)
14.2 Notifications by the Project Manager
242(2)
14.3 Notifications by the Contractor
244(4)
14.4 Project Manager's response to notifications
248(2)
14.5 Last date for notification of compensation events
250(2)
15 Quotations for compensation events
252(6)
15.1 Introduction
252(1)
15.2 Instructions to submit quotations
253(1)
15.3 Failure to give early warning
253(1)
15.4 Assumptions for assessment of quotations
254(1)
15.5 Primary clauses on quotations
255(1)
15.6 Submissions of quotations
255(1)
15.7 Revised quotations
256(1)
15.8 Failure to reply to quotations
256(1)
15.9 General comment on ECC4's assessment and quotation systems
256(2)
16 Assessment of compensation events
258(15)
16.1 Introduction
258(1)
16.2 Changes from ECC3
259(1)
16.3 General assessment rules
260(5)
16.4 Particular assessment rules
265(3)
16.5 The Project Manager's assessments
268(2)
16.6 Implementing compensation events
270(2)
16.7 Other financial remedies
272(1)
17 Title
273(6)
17.1 Introduction
273(1)
17.2 Client's title to equipment, plant and materials
274(1)
17.3 Marking equipment, plant and materials
275(1)
17.4 Removing equipment
276(1)
17.5 Objects and materials within the site
276(3)
18 Liabilities and insurance
279(13)
18.1 Introduction
279(4)
18.2 Liabilities and insurance under ECC4
283(1)
18.3 Client's liabilities
284(3)
18.4 Contractor's liabilities
287(1)
18.5 Recovery of costs
288(1)
18.6 Insurances
289(1)
18.7 The Insurance Table
289(1)
18.8 Insurance policies
289(1)
18.9 Contractor's failure to insure
290(1)
18.10 Insurance by the Client
291(1)
19 Termination
292(11)
19.1 Introduction
292(2)
19.2 Termination under ECC4
294(1)
19.3 Reasons for termination under ECC4
295(1)
19.4 The Termination Table and the Termination Certificate
296(1)
19.5 Comment on reasons
297(3)
19.6 Procedures on termination
300(1)
19.7 Amounts due on termination
301(2)
20 Dispute avoidance and dispute resolution
303(21)
20.1 Introduction
303(1)
20.2 Overall structure of ECC4 dispute avoidance and dispute resolution provisions
304(1)
20.3 Option W3 -- the Dispute Avoidance Board
305(1)
20.4 Choice of Options
305(1)
20.5 Involvement of Senior Representatives
305(1)
20.6 Meaning of dispute
306(2)
20.7 Adjudication under Option W1
308(8)
20.8 Adjudication under Option W2
316(4)
20.9 Review by the tribunal
320(3)
20.10 The Adjudicator's contract
323(1)
21 NEC4 Engineering and Construction Subcontract
324(9)
21.1 Introduction
324(1)
21.2 Structure of the ECC4 subcontract
325(1)
21.3 Common core clause grouping
326(1)
21.4 Core clauses -- general
327(1)
21.5 Core clauses -- the Subcontractor's main responsibilities
327(1)
21.6 Core clauses -- time
328(1)
21.7 Core clauses -- quality management
329(1)
21.8 Core clauses -- payment
329(1)
21.9 Core clauses -- compensation events
330(1)
21.10 Core clauses -- title
330(1)
21.11 Core clauses -- liabilities and insurances
331(1)
21.12 Core clauses -- termination
331(1)
21.13 Resolving and avoiding disputes
331(2)
22 Legal decisions on NEC-based contracts
333(22)
22.1 Introduction
333(1)
22.2 ABB Limited v. Bam Nuttall Ltd [ 2013] EWHC 1983 (TCC)
333(1)
22.3 Amey LG Ltd v. Cumbria County Council [ 2016] EWHC 2856 (TCC)
333(1)
22.4 Amey Wye Valley Ltd v. The County of Herefordshire District Council (Rev1) [ 2016] EWHC 2368 (TCC)
334(1)
22.5 Anglian Water Services Ltd v. Laing O'Rourke Utilities Ltd [ 2010] EWHC 1529 (TCC)
334(1)
22.6 Arbitration Application No 2 of 2016 & [ 2017] Scot CS CSOH 23 (P1039/16)
335(1)
22.7 Arcadis UK Ltd v. May and Baker Ltd (t/a Sanofi) [ 2013] EWHC 87
335(1)
22.8 AMEC Group Ltd v. Secretary of State for Defence [ 2013] EWHC 110 (TCC)
335(1)
22.9 Aecom Design Build Ltd v. Staptina Engineering Services Ltd [ 2017] EWHC 723 (TCC)
336(1)
22.10 Atkins Ltd v. Secretary of State for Transport [ 2013] EWHC 139 (TCC)
336(1)
22.11 Balfour Beatty Ltd v. Gilcomston North Ltd and O Turner Insulation Ltd [ 2006] Scot CS CSOH 81
337(1)
22.12 Cleveland Bridge UK Ltd v. Sarens (UK) Ltd [ 2018] EWHC 751 (TCC)
337(1)
22.13 Beumer Group UK Ltd v. Vinci Construction UK Ltd [ 2016] EWHC 2283 (TCC)
338(1)
22.14 Costain Ltd v. Tarmac Holdings Ltd [ 2017] EWHC 319 (TCC)
338(1)
22.15 Dynniq UK Ltd v. Lancashire County Council [ 2017] EWHC 3173 (TCC)
339(1)
22.16 Costa in Ltd & O'Rourke Civil Engineering Ltd & Bachy Soletance Ltd & Emcor Drake and Scull Group PLC v. Bechtel Ltd & Mr Fady Bassily [ 2005] EWHC 1018 (TCC)
339(1)
22.17 Ecovision Systems Ltd v. Vinci Construction UK Ltd (Revl) [ 2015] EWHC 587 (TCC)
340(1)
22.18 Farelly (M&E) Building Services Limited v. Byrne Brothers (Formwork) Ltd [ 2013] EWHC 1186 (TCC)
340(1)
22.19 Fermanagh District Council v. Gibson (Banbridge) Ltd [ 2014] NICA46
341(1)
22.20 Ground Developments Ltd v. FCC Construction SA& Ors [ 2016] EWHC 1946 (TCC)
341(1)
22.21 Henry Brothers (Magherafelt) Ltd & Ors v. Department of Education for Northern Ireland [ 2007] NIQB 116, [ 2008] NIQB 105
341(1)
22.22 Imtech Inviron Ltd v. Loppingdale Plant Ltd [ 2014] EWHC 4006 (TCC)
342(1)
22.23 Imperial Chemical Industries Ltd v. Merit Merrell Technology Ltd [ 2018] EWHC 1577 (TCC)
342(1)
22.24 Imperial Chemical Industries Ltd v. Merit Merrell Technology Ltd [ 2016] EWHC B30 (TCC) [ 2017] EWHC 1763 (TCC)
342(1)
22.25 Imperial Chemical Industries Ltd v. Merit Merrell Technology Ltd [ 2015] EWHC 2915 (TCC)
343(1)
22.26 Liberty Mercian Ltd v. Cuddy Civil Engineering Ltd & Anor [ 2013] EWHC 2688 (TCC), [ 2013] EWHC 4110 (TCC), [ 2014] EWHC 3584 (TCC)
343(1)
22.27 McAlpine PPS Pipeline Systems Joint Venture v. Transco PLC [ 2004] EWHC 2030 (TCC)
344(1)
22.28 FP McCann Ltd v. The Department for Regional Development [ 2016] NICh 12
344(1)
22.29 McConnell Dowell Constructors (Aust) Pty Ltd v. National Grid Gas PLC [ 2006] EWHC 2551 (TCC)
344(1)
22.30 Mears Ltd v. Shoreline Housing Partnership Ltd [ 2013] EWHC 27, [ 2015] EWHC 1396
345(1)
22.31 Maersk Oil UK Ltd (formerly Kerr-McGee Oil (UK) PLC) v. Dresser-Rand (UK) Ltd [ 2007] EWHC 752 (TCC)
345(1)
22.32 J Murphy & Sons Ltd v. W. Maher and Sons Ltd [ 2016] EWHC 1148 (TCC)
345(1)
22.33 Northern Ireland Housing Executive v. Combined Facilities Management [ 2014] NIQB 75 [ 2015]
346(1)
22.34 Northern Ireland Housing Executive v. Healthy Buildings Ltd [ 2013] NIQB 124/[ 2017] NIQB 43
346(1)
22.35 ROK Building Limited v. Celtic Composting Systems Ltd [ 2009] EWHC 2664 (TCC), [ 2010] EWHC 66
347(1)
22.36 RWE Npower Renewables Ltd v. JN Bentley Ltd [ 2013] EWHC 978 (TCC)
347(1)
22.37 RWE Npower Renewables Ltd v. [ N Bentley Ltd [ 2014] EWCA Civ 150
347(1)
22.38 Secretary of State for Defence v. Turner Estate Solutions Limited [ 2015] EWHC 1150 (TCC)
348(1)
22.39 SGL Carbon Fibres Ltd v. RBG Ltd [ 2012] Scot CS CSOH 19, [ 2010] CSOH 77
348(1)
22.40 Stork Technical Services (RBG) Ltd v. Ros [ 2015] CSOH 10A
348(1)
22.41 Shepherd Construction Ltd v. Pinsent Masons LLP [ 2012] EWHC 43 (TCC) BLR 213, 141 Con LR 232
348(1)
22.42 Seele Austria GmbH & Co Kg v. Tokio Marine Europe Insurance Ltd [ 2009] EWHC 2066 (TCC)
349(1)
22.43 SSE Genera] Ltd v. Hochtief Solutions AG & Anor [ 2015] Scot CS CSOH 92
349(1)
22.44 Vinci Construction UK Ltd v. Beumer Group UK Ltd [ 2017] EWHC 2196 (TCC)
350(1)
22.45 Volker Stevin Limited v. Holystone Contracts Limited [ 2010] EWHC 2344 (TCC)
350(1)
22.46 Wales and West Utilities Limited v. PPS Pipeline Systems GmbH [ 2014] EWHC 54 (TCC)
351(1)
22.47 Walker Construction (UK) Ltd v. Quayside Homes Ltd and Peter Brett Associates LLP [ 2014] EWCA Civ 93
351(1)
22.48 (1) Walter Llewellyn & Sons Limited (2) ROK Building Limited v. Excel Brickwork Limited [ 2010] EWHC 3415 (TCC)
352(1)
22.49 AE Yates Trenchless Solutions Ltd v. Black & Veatch Ltd [ 2008] EWHC 3183 (TCC)
352(1)
22.50 Weatherford Global Products Ltd v. Hydropath Holdings Ltd & Ors [ 2014] EWHC 2725 (TCC)
352(1)
22.51 WSP Cel Ltd v. Dalkia Utilities Services PLC [ 2012] EWHC 2428 (TCC)
353(2)
Table of cases 355(4)
Table of clause references 359
BRIAN EGGLESTON CEng, FICE, FIStructE, FCIArb, was a chartered arbitrator with extensive UK and international experience and was past President of the Chartered Institute of Arbitrators. He acted as an adjudicator and mediator, as an adviser to contractors and employers on contractual matters and was a well-known author and speaker on contract law and standard forms. In a career spanning over 40 years he worked on all sides of the construction industry, firstly as a bridge designer, then as a resident engineer and contracts administrator, and subsequently as a director of various building and civil engineering contracting companies.
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