NEC4 Engineering and Construction Contract

A Commentary

Inbunden, Engelska, 2019

Av Brian Eggleston, Registered Arbitrator) Eggleston, Brian (CEng, FICE, FIStructE, FCIArb

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The authoritative guide to the NEC4 Engineering and Construction ContractThe 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 projectsExamines the new contract clause by clause and compares it with the previous editionPrevious editions were widely acknowledged as detailed and fair analyses of the NEC contractsWritten by a highly regarded contracts commentator, experienced arbitrator, and adjudicatorThe 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.

Produktinformation

Utgivningsdatum2019-04-12
Mått173 x 246 x 23 mm
Vikt907 g
FormatInbunden
SpråkEngelska
Antal sidor400
Upplaga3
FörlagJohn Wiley and Sons Ltd
ISBN9781119478751

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Mänskliga och medborgerliga rättigheter inom Juridik

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.

Preface xvAuthor’s notex vii1 Introduction 11.1 Overview 11.2 Background 11.3 Objectives 11.4 Impacts of change 21.5 The NEC4 suite of contracts 31.6 Characteristics of NEC contracts 31.7 Structure of the NEC4 engineering and construction contract (ECC4) 41.8 Changes ECC3 to ECC4 61.9 Review of points of interest 71.10 Entire agreement 71.11 Exclusion of common law rights 81.12 Conditions precedent to compensation event claims 81.13 Role and powers of the project manager 81.14 Changes to scope (previously Works Information) 91.15 Prevention 91.16 Quotations for compensation events 91.17 Assessments of compensation events 91.18 Dispute avoidance and dispute resolution 102 Changes from ECC3 112.1 Evolution 112.2 Features and enhancements 112.3 Terminological changes 122.4 Changes to core clauses 122.5 Changes to dispute resolution procedures 152.6 Changes to secondary option clauses 162.7 Data sheet changes 163 Main options 173.1 Introduction 173.2 Contract strategy 183.3 Responsibility for design 193.4 Certainty of price 203.5 Allocation of risk 213.6 The Client’s requirements 223.7 Operating restrictions 233.8 Early start and/or rapid finish 233.9 Flexibility in contractual arrangements 233.10 Aversion to disputes 233.11 Single point responsibility 243.12 Option A – priced contract with activity schedule 243.13 Option B – priced contract with bill of quantities 253.14 Target contracts generally 273.15 Options C and D – target contracts 293.16 Option E – cost reimbursable contract 303.17 Option F – management contract 313.18 Options W1, W2, W3 – resolving and avoiding disputes 314 Secondary options 324.1 Introduction 324.2 Choice of secondary option clauses 334.3 Status of secondary option clauses 334.4 Option X1 – price adjustment for inflation 344.5 Option X2 – changes in the law 344.6 Option X3 – multiple currencies 354.7 Option X4 – ultimate holding company guarantee 364.8 Option X5 – sectional completion 364.9 Option X6 – bonus for early completion 374.10 Option X7 – delay damages 374.11 Option X8 – undertakings to the client or others 424.12 Option X9 – transfer of rights 424.13 Option X10 – information modelling 434.14 Option X11 – termination by the Client 434.15 Option X12 – multiParty collaboration 444.16 Option X13 – performance bond 454.17 Option X14 – advanced payment to the contractor 474.18 Option X15 – the contractor’s design 484.19 Option X16 – retention 494.20 Option X17 – low performance damages 504.21 Option X18 – limitation of liability 514.22 Option X20 – key performance indicators 554.23 Option X21 – whole life cost 564.24 Option X22 – early contractor involvement 564.25 Option Y(UK)1 – project bank account 574.26 Option Y(UK)2 – housing Grants, construction and regeneration act 1996 574.27 Option Y(UK)3 – contracts (Rights of Third Parties) act 1999 584.28 Option Z – additional conditions of contract 585 Contract documents 595.1 Introduction 595.2 Entire agreements 605.3 Clause 12.4 of ECC4 615.4 Construction of contracts generally 625.5 ECC4 documentation 635.6 Essential contract documents 645.7 Identified and defined terms 655.8 The Contract Date 665.9 Scope 675.10 Site Information 705.11 Contract Data 725.12 Schedules of cost components 725.13 Ambiguities and inconsistencies in the contract documents 745.14 Schedule of clauses referring to the Scope 746 Key players 796.1 Introduction 796.2 Others 816.3 Actions 826.4 Mutual trust and co-operation 836.5 The Client 846.6 Express obligations of the client 856.7 The Project manager 866.8 Express duties of the project manager 896.9 The supervisor 976.10 Express duties of the supervisor 976.11 Communications 986.12 The Project manager and the supervisor 1027 General core clauses 1047.1 Introduction 1047.2 Mutual trust and co-operation 1057.3 Actions 1067.4 Identified and defined terms 1077.5 Interpretation and the law 1167.6 Communications 1177.7 The Project manager and the supervisor 1177.8 Instructions 1187.9 Early warning 1187.10 Contractor’s proposals 1217.11 Requirements for instructions 1217.12 Illegal and impossible requirements 1227.13 Corrupt Acts 1237.14 Prevention 1238 Obligations and responsibilities of the Contractor 1288.1 Introduction 1288.2 Design obligations, responsibilities and liabilities 1318.3 Providing the works 1338.4 The Contractor’s design 1348.5 Using the Contractor’s design 1378.6 Design of equipment 1388.7 People 1388.8 Working with the client and others 1408.9 Subcontracting 1428.10 Other responsibilities 1458.11 Assignment 1478.12 Disclosure 1478.13 Express obligations of the contractor 1488.14 Express prohibitions on the contractor 1559 Time (and related matters) 1579.1 Introduction 1579.2 Starting and completion 1599.3 Programmes 1619.4 Revision of programmes 1659.5 Shortened programmes 1679.6 Access to and use of the site 1689.7 Instructions to stop or not to start work 1699.8 Take over 1719.9 Acceleration 17310 Quality management 17510.1 Introduction on quality management 17510.2 Contractual provisions of ECC4 on quality management 17610.3 Understanding the contractual provisions on quality management 17710.4 Introduction on testing and defects 17710.5 Definitions and certificates 18010.6 Tests and inspections 18310.7 Testing and inspection before delivery 18610.8 Searching for and notifying defects 18610.9 Correcting defects 18810.10 Accepting defects 19010.11 Uncorrected defects 19111 Payments 19311.1 Introduction 19311.2 Assessing the amount due 19611.3 Payments 19811.4 Defined cost 20111.5 Payments – main option A 20211.6 Payments – main option B 20511.7 Payments – main option C 20611.8 Payments – main option D 21011.9 Payments – main option E 21111.10 Payments – main option F 21111.11 Final assessment 21211.12 Status of and disputes on final assessments 21312 ECC4 compensation event schemes 21512.1 Introduction 21512.2 Structure of ECC4 compensation events schemes 21712.3 Amendments and additions 21712.4 Outline of procedures 21912.5 Defining a compensation event 22012.6 Compensation events as exclusive remedies 22012.7 Fairness of the compensation event procedures 22212.8 Unusual features of the compensation event procedures 22213 Listed compensation events 22313.1 Introduction 22313.2 Omissions from the listed events 22413.3 Scope-related events 22413.4 Client’s default events 22613.5 Client’s liability events 22913.6 Project manager/supervisor-related events 23013.7 Physical conditions 23313.8 Adverse weather 23613.9 Prevention 23713.10 Measurement-related events 23813.11 Secondary option clause events 24014 Notifying compensation events 24214.1 Introduction 24214.2 Notifications by the project manager 24214.3 Notifications by the contractor 24414.4 Project Manager’s response to notifications 24814.5 Last date for notification of compensation events 25015 Quotations for compensation events 25215.1 Introduction 25215.2 Instructions to submit quotations 25315.3 Failure to give early warning 25315.4 Assumptions for assessment of quotations 25415.5 Primary clauses on quotations 25515.6 Submissions of quotations 25515.7 Revised quotations 25615.8 Failure to reply to quotations 25615.9 General comment on ECC4’s assessment and quotation systems 25616 Assessment of compensation events 25816.1 Introduction 25816.2 Changes from ECC3 25916.3 General assessment rules 26016.4 Particular assessment rules 26516.5 The Project manager’s assessments 26816.6 Implementing compensation events 27016.7 Other financial remedies 27217 Title 27317.1 Introduction 27317.2 Client’s title to equipment, plant and materials 27417.3 Marking equipment, plant and materials 27517.4 Removing equipment 27617.5 Objects and materials within the site 27618 Liabilities and insurance 27918.1 Introduction 27918.2 Liabilities and insurance under ECC4 28318.3 Client’s liabilities 28418.4 Contractor’s liabilities 28718.5 Recovery of costs 28818.6 Insurances 28918.7 The Insurance table 28918.8 Insurance policies 28918.9 Contractor’s failure to insure 29018.10 Insurance by the client 29119 Termination 29219.1 Introduction 29219.2 Termination under ECC4 29419.3 Reasons for termination under ECC4 29519.4 The Termination table and the termination certificate 29619.5 Comment on reasons 29719.6 Procedures on termination 30019.7 Amounts due on termination 30120 Dispute avoidance and dispute resolution 30320.1 Introduction 30320.2 Overall structure of ECC4 dispute avoidance and dispute resolution provisions 30420.3 Option W3 – the Dispute avoidance board 30520.4 Choice of options 30520.5 Involvement of denior representatives 30520.6 Meaning of dispute 30620.7 Adjudication under option W1 30820.8 Adjudication under option W2 31620.9 Review by the tribunal 32020.10 The Adjudicator’s contract 32321 NEC4 Engineering and construction Subcontract 32421.1 Introduction 32421.2 Structure of the ECC4 subcontract 32521.3 Common core clause grouping 32621.4 Core clauses – general 32721.5 Core clauses – the Subcontractor’s main responsibilities 32721.6 Core clauses – time 32821.7 Core clauses – quality management 32921.8 Core clauses – payment 32921.9 Core clauses – compensation events 33021.10 Core clauses – title 33021.11 Core clauses – liabilities and insurances 33121.12 Core clauses – termination 33121.13 Resolving and avoiding disputes 33122 Legal decisions on NEC-based contracts 33322.1 Introduction 33322.2 ABB Limited v. Bam Nuttall Ltd [2013] EWHC 1983 (TCC) 33322.3 Amey LG Ltd v. Cumbria County Council [2016] EWHC 2856 (TCC) 33322.4 Amey Wye Valley Ltd v. The County of Herefordshire District Council (Rev1) [2016] EWHC 2368 (TCC) 33422.5 Anglian Water Services Ltd v. Laing O’Rourke Utilities Ltd [2010] EWHC 1529 (TCC) 33422.6 Arbitration Application No 2 of 2016 & [2017] Scot CS CSOH 23 (P1039/16) 33522.7 Arcadis UK Ltd v. May and Baker Ltd (t/a Sanofi) [2013] EWHC 87 33522.8 AMEC Group Ltd v. Secretary of State for Defence [2013] EWHC 110 (TCC) 33522.9 Aecom Design Build Ltd v. Staptina Engineering Services Ltd [2017] EWHC 723 (TCC) 33622.10 Atkins Ltd v. Secretary of State for Transport [2013] EWHC 139 (TCC) 33622.11 Balfour Beatty Ltd v. Gilcomston North Ltd and O Turner Insulation Ltd [2006] Scot CS CSOH 81 33722.12 Cleveland Bridge UK Ltd v. Sarens (UK) Ltd [2018] EWHC 751 (TCC) 33722.13 Beumer Group UK Ltd v. Vinci Construction UK Ltd [2016] EWHC 2283 (TCC) 33822.14 Costain Ltd v. Tarmac Holdings Ltd [2017] EWHC 319 (TCC) 33822.15 Dynniq UK Ltd v. Lancashire County Council [2017] EWHC 3173 (TCC) 33922.16 Costain 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) 33922.17 Ecovision Systems Ltd v. Vinci Construction UK Ltd (Rev1) [2015] EWHC 587 (TCC) 34022.18 Farelly (M&E) Building Services Limited v. Byrne Brothers (Formwork) Ltd [2013] EWHC 1186 (TCC) 34022.19 Fermanagh District Council v. Gibson (Banbridge) Ltd [2014] NICA 46 34122.20 Ground Developments Ltd v. FCC Construction SA & Ors [2016] EWHC 1946 (TCC) 34122.21 Henry Brothers (Magherafelt) Ltd & Ors v. Department of Education for Northern Ireland [2007] NIQB 116, [2008] NIQB 105 34122.22 Imtech Inviron Ltd v. Loppingdale Plant Ltd [2014] EWHC 4006 (TCC) 34222.23 Imperial Chemical Industries Ltd v. Merit Merrell Technology Ltd [2018] EWHC 1577 (TCC) 34222.24 Imperial Chemical Industries Ltd v. Merit Merrell Technology Ltd [2016] EWHC B30 (TCC) [2017] EWHC 1763 (TCC) 34222.25 Imperial Chemical Industries Ltd v. Merit Merrell Technology Ltd [2015] EWHC 2915 (TCC) 34322.26 Liberty Mercian Ltd v. Cuddy Civil Engineering Ltd & Anor [2013] EWHC 2688 (TCC), [2013] EWHC 4110 (TCC), [2014] EWHC 3584 (TCC) 34322.27 McAlpine PPS Pipeline Systems Joint Venture v. Transco PLC [2004] EWHC 2030 (TCC) 34422.28 FP McCann Ltd v. The Department for Regional Development [2016] NICh 12 34422.29 McConnell Dowell Constructors (Aust) Pty Ltd v. National Grid Gas PLC [2006] EWHC 2551 (TCC) 34422.30 Mears Ltd v. Shoreline Housing Partnership Ltd [2013] EWHC 27, [2015] EWHC 1396 34522.31 Maersk Oil UK Ltd (formerly Kerr-McGee Oil (UK) PLC) v. Dresser-Rand (UK) Ltd [2007] EWHC 752 (TCC) 34522.32 J Murphy & Sons Ltd v. W. Maher and Sons Ltd [2016] EWHC 1148 (TCC) 34522.33 Northern Ireland Housing Executive v. Combined Facilities Management [2014] NIQB 75 [2015] 34622.34 Northern Ireland Housing Executive v. Healthy Buildings Ltd [2013] NIQB 124/[2017] NIQB 43 34622.35 ROK Building Limited v. Celtic Composting Systems Ltd [2009] EWHC 2664 (TCC), [2010] EWHC 66 34722.36 RWE Npower Renewables Ltd v. JN Bentley Ltd [2013] EWHC 978 (TCC) 34722.37 RWE Npower Renewables Ltd v. JN Bentley Ltd [2014] EWCA Civ 150 34722.38 Secretary of State for Defence v. Turner Estate Solutions Limited [2015] EWHC 1150 (TCC) 34822.39 SGL Carbon Fibres Ltd v. RBG Ltd [2012] Scot CS CSOH 19, [2010] CSOH 77 34822.40 Stork Technical Services (RBG) Ltd v. Ros [2015] CSOH 10A 34822.41 Shepherd Construction Ltd v. Pinsent Masons LLP [2012] EWHC 43 (TCC) BLR 213, 141 Con LR 232 34822.42 Seele Austria GmbH & Co Kg v. Tokio Marine Europe Insurance Ltd [2009] EWHC 2066 (TCC) 34922.43 SSE General Ltd v. Hochtief Solutions AG & Anor [2015] Scot CS CSOH 92 34922.44 Vinci Construction UK Ltd v. Beumer Group UK Ltd [2017] EWHC 2196 (TCC) 35022.45 Volker Stevin Limited v. Holystone Contracts Limited [2010] EWHC 2344 (TCC) 35022.46 Wales and West Utilities Limited v. PPS Pipeline Systems GmbH [2014] EWHC 54 (TCC) 35122.47 Walker Construction (UK) Ltd v. Quayside Homes Ltd and Peter Brett Associates LLP [2014] EWCA Civ 93 35122.48 (1)Walter Llewellyn & Sons Limited (2) ROK Building Limited v. Excel Brickwork Limited [2010] EWHC 3415 (TCC) 35222.49 AE Yates Trenchless Solutions Ltd v. Black & Veatch Ltd [2008] EWHC 3183 (TCC) 35222.50 Weatherford Global Products Ltd v. Hydropath Holdings Ltd & Ors [2014] EWHC 2725 (TCC) 35222.51 WSP Cel Ltd v. Dalkia Utilities Services PLC [2012] EWHC 2428 (TCC) 353Table of cases 355Table of clause references 359