Engineering and
Construction Contract
NEC 3 Engineering and Construction Contract
Chartered Institute of Building
“ NEC3 – Programme Requirements, Meeting the
Obligations of the Contract & Methodology
Robert Paterson
Engineering and
Construction Contract
OBJECTIVES
• Requirements of the Accepted Programme
• Methodology - Submissions
• Compensation Event Procedures
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Introduction
Four versions of programme Submission
Tender programme (does not have to be compliant with
requirements of contract)
Clause 31 – First programme submitted for ‘Acceptance’
Clause 32 – Subsequent submissions of ‘Accepted Programme’
Clause 62 – Compensation Event Programme
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What is the ‘Accepted Programme’
Clause 11.2 (1)
‘The Accepted Programme is the Programme identified in
the Contract Data or is the latest programme accepted by
the Project Manager. The latest programme accepted by
the Project Manager supersedes previous Accepted
Programmes’
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Requirements of an Accepted Programme
Clause 31.2 requires the following to be included:
Starting date, access dates, Key Dates and Completion Date
Planned Completion
The order and timing of the operations which the Contractor plans
to do in order to Provide the Works
The order and timing of the work of the Employer and Others as
last agreed with them by the Contractor or, if not so agreed, as
stated in the Works Information
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Requirements of an Accepted Programme continued
The dates when the Contractor plans to meet each Condition
stated for the Key Dates and to complete other work needed to
allow the Employer and others to their work
Provisions for
Float
Time risk allowances
Health and safety requirements
The procedures set out in this contract
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Requirements of an Accepted Programme continued
The dates when, in order to Provide the Works in accordance with his
programme, the Contractor will need:
Access to a part of the Site if later than its access date
Acceptances
Plant and material and other things to be provided by the Employer and
Information from Others
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Requirements of an Accepted Programme continued
For each operation, a statement of how the Contractor plans to do
the work identifying the principal Equipment and other resources
which he plans to use and
Other information which the Works Information requires the
Contractor to show on a programme submitted for acceptance
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Requirements of an Accepted Programme continued
Main Option clauses:
Options A and C – 31.4 The Contractor provides information which
shows how each activity on the Activity Schedule relates to the
operations on each programme which he submits for acceptance
Option B, D and E – no additional requirements
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Requirements of an Accepted Programme continued
Option Clauses:
Option X5 – Sectional Completion
Z Clauses – additional programme related information may be
included in these clauses and it may be a requirement to pass
these obligations onto sub contractors
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Clause 31 – Programme for Acceptance
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Methodology – Programme Submission
Clause 32.1: The Contractor shows on each revised programme
The actual progress achieved on each operation and its effect
upon the timing of the remaining work
The effects of implemented compensation events and of notified
early warning matters
How the Contractor plans to deal with any delays and to correct
notified Defects and
Any other changes which the Contractor proposes to make to the
Accepted Programme
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Methodology – Programme Submission continued
Clause 32.2: The Contractor submits a revised programme to the Project
Manager for acceptance
Within the period for reply after the Project Manager has instructed
him to (Data Pt 1 – 1 General bullet point 11 Period of Reply)
When the Contractor chooses to and, in case
At no longer interval than the interval stated in the Contract Data
from the Starting Date until Completion of the whole of the works
(Data Pt 1 – 3 Time bullet point 3)
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Clause 32 - Revised Programme
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Reasons for not Accepting the Programme
Clause 31.3 – within two weeks of the Contractor submitting a
programme for acceptance, the Project Manager either accepts
the programme or notifies the Contractor of his reasons for not
accepting it. A reason for not accepting a programme is that
The Contractor’s plans which it shows are not practicable
It does not show the information which this contract requires
It does not represent the Contractor’s plans realistically
It does not comply with the Works Information
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Compensation Events
Clause 16 – Early Warnings (can be submitted by either party)
Clause 60 – The events that are compensation events are detailed in this
clause
Clause 61.1 - Project Manager issues a Project Managers Instruction or
changing a decision..
Clause 61.3 – Contractor notifies the Project Manager of an event.. (note
time limit of 8 weeks)
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Compensation Events continued
Clause 62 – Quotations for Compensation Events
Not all compensation events will provide entitlement to time, the effects
must be modelled to determine entitlement
The Contractor has 3 weeks to submit a quotation
The Project Manager has 2 weeks to reply to the quotation
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Clause 62 – Compensation Event Programme
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Compensation Events continued
Clause 63.3 – A delay to the Completion Date is assessed as the length
of time that, due to the compensation event, planned Completion is later
than planned Completion as shown on the Accepted Programme..
Clause 63.6 – Assessment of the effect of a compensation event includes
risk allowances for cost and time for matters which have a significant
chance of occurring and are a Contractor’s risk under this contract
Clause 63.9 – If a change to the Works Information makes the description
of the Condition for a Key Date incorrect, the Project Manager corrects
the description. This correction is taken into account in assessing the
compensation event for the change to the Works Information
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Compensation Events continued
Clause 64 – Project Managers Assessments (related to programmes)
Clause 64.1 – If when the Contractor submits quotations for a
compensation event, he has not submitted a programme, or alterations to
a programme which this contract requires him to submit, or
If, when the Contractor submits quotations for a compensation event,
the Project Manager has not accepted the Contractor’s latest
programme for one of the reasons stated in this contract
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Compensation Events continued
Clause 65 – Implementing Compensation Events
Clause 65.2 – The assessment of a compensation event is not
revised if a forecast upon which it is based is shown by later recorded
information to have been wrong.
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Questions