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ects associated with UK Shared Business Services Ltd

® NEC is a division of Thomas Telford Ltd, which is a wholly owned subsidiary of

the Institution of Civil Engineers (ICE), the owner and developer of the NEC.

The NEC is a family of standard contracts, each of which has these

characteristics:
. Its use stimulates good management of the relationship between the two
parties to the contract and, hence, of the work included in the contract.
. It can be used in a wide variety of commercial situations, for a wide
variety of types of work and in any location.
. It is a clear and simple document – using language and a structure
which are straightforward and easily understood.
NEC3 Engineering and Construction Contract is one of the NEC family and is
consistent with all other NEC3 documents. Also available are the Engineering
and Construction Contract Guidance Notes, Flow Charts and Options A, B, C,
Engineering and Construction Contract D, E and F.

This contract should be used for the appointment of a contractor for ISBN (complete box set) 978 0 7277 5867 5
engineering and construction work, including any level of ISBN (this document) 978 0 7277 5865 1
design responsibility ISBN (Engineering and Construction Contract Guidance Notes) 978 0 7277 5903 0
ISBN (Engineering and Construction Contract Flow Charts) 978 0 7277 5905 4
ISBN (Option A: Priced contract with activity schedule) 978 0 7277 5869 9
ISBN (Option B: Priced contract with bill of quantities) 978 0 7277 5871 2
ISBN (Option C: Target contract with activity schedule) 978 0 7277 5873 6
ISBN (Option D: Target contract with bill of quantities) 978 0 7277 5875 0
ISBN (Option E: Cost reimbursable contract) 978 0 7277 5877 4
ISBN (Option F: Management contract) 978 0 7277 5879 8
ISBN (how to write the ECC Works Information) 978 0 7277 5907 8
An NEC document ISBN (how to use the ECC communication forms) 978 0 7277 5909 2

Consultative edition 1991

First edition 1993
Second edition 1995
Reprinted November 1995 with amendments
Reprinted with corrections May 1998
Third edition June 2005
April 2013 Reprinted with amendments June 2006
Reprinted 2007 (twice), 2008, 2009, 2010 (thrice), 2011, 2012
Reprinted with amendments 2013

British Library Cataloguing in Publication Data for this publication is available

from the British Library.

# Copyright nec 2013

All rights, including translation, reserved. The owner of this document may
reproduce the Contract Data and forms for the purpose of obtaining tenders,
awarding and administering contracts. Except as permitted by the Copyright,
Construction Clients’ Board endorsement of NEC3 Designs and Patents Act 1988, no part of this publication may be otherwise
reproduced, stored in a retrieval system or transmitted in any form or by any
The Construction Clients’ Board recommends that public sector organisations means, electronic, mechanical, photocopying, recording or otherwise, without
use the NEC3 contracts when procuring construction. Standardising the prior written permission of the NEC Director, Thomas Telford Ltd, One
use of this comprehensive suite of contracts should help to Great George Street, Westminster, London SW1P 3AA.
deliver efficiencies across the public sector and promote behaviours
in line with the principles of Achieving Excellence in Construction.
Typeset by Academic + Technical, Bristol
Cabinet Office UK
Printed and bound in Great Britain by Bell & Bain Limited, Glasgow, UK
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CONTENTS

Foreword v
Preface vii
Acknowledgements ix
Amendments x
Schedule of Options 1
Core clauses 1 General 3
2 The Contractor’s main responsibilities 7
3 Time 9
4 Testing and Defects 11
5 Payment 13
6 Compensation events 15
7 Title 20
8 Risks and insurance 21
9 Termination 24
Main Option clauses A Priced contract with activity schedule 27
B Priced contract with bill of quantities 29
C Target contract with activity schedule 31
D Target contract with bill of quantities 34
E Cost reimbursable contract 38
F Management contract 40
Dispute resolution W Option W1 42
Option W2 45
Secondary Option clauses X1 Price adjustment for inflation 48
X2 Changes in the law 49
X3 Multiple currencies 49
X4 Parent company guarantee 49
X5 Sectional Completion 49
X6 Bonus for early Completion 50
X7 Delay damages 50
X12 Partnering 50
X13 Performance bond 52
X14 Advanced payment to the Contractor 52
X15 Limitation of the Contractor’s liability for his design to reasonable 52
skill and care
X16 Retention 53
X17 Low performance damages 53
X18 Limitation of liability 53
X20 Key Performance Indicators 54
Y(UK)1 Project Bank Account 55
Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996 59
Y(UK)3 The Contracts (Rights of Third Parties) Act 1999 59
Z Additional conditions of contract 59
Note Options X8 to X11 and X19 are not used
Schedule of Cost 60
Components
Shorter Schedule of Cost 63
Components
Contract Data 65
Index 78
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FOREWORD

I was delighted to be asked to write the Foreword for the NEC3 Contracts.
I have followed the outstanding rise and success of NEC contracts for a
number of years now, in particular during my tenure as the 146th President
of the Institution of Civil Engineers, 2010/11.
In my position as UK Government’s Chief Construction Adviser, I am working
with Government and industry to ensure Britain’s construction sector is
equipped with the knowledge, skills and best practice it needs in its transition
to a low carbon economy. I am promoting innovation in the sector, including in
particular the use of Building Information Modelling (BIM) in public sector
construction procurement; and the synergy and fit with the collaborative
nature of NEC contracts is obvious. The Government’s construction strategy is
a very significant investment and NEC contracts will play an important role in
setting high standards of contract preparation, management and the
desirable behaviour of our industry.
In the UK, we are faced with having to deliver a 15–20 per cent reduction in
the cost to the public sector of construction during the lifetime of this
Parliament. Shifting mind-set, attitude and behaviour into best practice NEC
processes will go a considerable way to achieving this.
Of course, NEC contracts are used successfully around the world in both
public and private sector projects; this trend seems set to continue at an
increasing pace. NEC contracts are, according to my good friend and NEC’s
creator Dr Martin Barnes CBE, about better management of projects. This is
quite achievable and I encourage you to understand NEC contracts to the best
you can and exploit the potential this offers us all.

Peter Hansford
UK Government’s Chief Construction Adviser
Cabinet Office
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PREFACE

The NEC contracts are the only suite of standard contracts designed to
facilitate and encourage good management of the projects on which they are
used. The experience of using NEC contracts around the world is that they
really make a difference. Previously, standard contracts were written mainly
as legal documents best left in the desk drawer until costly and delaying
problems had occurred and there were lengthy arguments about who was to
blame.
The language of NEC contracts is clear and simple, and the procedures set
out are all designed to stimulate good management. Foresighted
collaboration between all the contributors to the project is the aim. The
contracts set out how the interfaces between all the organisations involved
will be managed – from the client through the designers and main contractors
to all the many subcontractors and suppliers.
Versions of the NEC contract are specific to the work of professional service
providers such as project managers and designers, to main contractors, to
subcontractors and to suppliers. The wide range of situations covered by the
contracts means that they do not need to be altered to suit any particular
situation.
The NEC contracts are the first to deal specifically and effectively with
management of the inevitable risks and uncertainties which are encountered
to some extent on all projects. Management of the expected is easy, effective
management of the unexpected draws fully on the collaborative approach
inherent in the NEC contracts.
Most people working on projects using the NEC contracts for the first time
are hugely impressed by the difference between the confrontational
characteristics of traditional contracts and the teamwork engendered by the
NEC. The NEC does not include specific provisions for dispute avoidance. They
are not necessary. Collaborative management itself is designed to avoid
disputes and it really works.
It is common for the final account for the work on a project to be settled at the
time when the work is finished. The traditional long period of expensive
professional work after completion to settle final payments just is not needed.
The NEC contracts are truly a massive change for the better for the industries
in which they are used.

Dr Martin Barnes CBE

Originator of the NEC contracts
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ACKNOWLEDGEMENTS AMENDMENTS JUNE 2006

The following amendments have been made to the June 2005 edition.

Page Clause Line

The NEC first edition was produced by the Institution of Civil Engineers 10 32.1 4 deleted: ‘and of notified early warning matters’
through its NEC Working Group.
The original NEC was designed and drafted by Dr Martin Barnes then of 61 Contract Data 3 added, ‘(with amendments June 2006)’
Coopers and Lybrand with the assistance of Professor J. G. Perry then of the Part one, 1.
University of Birmingham, T. W. Weddell then of Travers Morgan Management,
64 Contract Data 23 deleted: ‘If there are additional compensation
T. H. Nicholson, Consultant to the Institution of Civil Engineers, A. Norman
Part one, 1. events’ and following 4 lines
then of the University of Manchester Institute of Science and Technology and
P. A. Baird, then Corporate Contracts Consultant, Eskom, South Africa.
The second edition of the NEC documents for engineering and construction
contracts was produced by the Institution of Civil Engineers through its NEC
Panel. AMENDMENTS APRIL 2013
The third edition of the NEC Engineering and Construction Contract was The following amendments have been made to the June 2005 edition.
produced by the Institution of Civil Engineers through its NEC Panel. The Full details of all amendments are available on [Link].
Flow Charts were produced by John S. Gillespie with assistance from Tom
Nicholson. Page Clause Line

The members of the NEC Panel are: 11 40.1 1 replace: ‘The subclauses in this clause only
apply’ with ‘This clause only applies’
P. Higgins, BSc, CEng, FICE, FCIArb (Chairman)
P. A. Baird, BSc, CEng, FICE, M(SA)ICE, MAPM 16 61.1 1 text replaced
M. Barnes, BSc(Eng), PhD, FREng, FICE, FCIOB, CCMI, ACIArb, MBCS, 61.3 1 text replaced
FInstCES, FAPM
A. J. Bates, FRICS, MInstCES 17 61.4 1 text replaced
A. J. M. Blackler, BA, LLB(Cantab), MCIArb
P. T. Cousins, BEng(Tech), DipArb, CEng, MICE, MCIArb, MCMI 18 62.6 2 replace: ‘to this effect’ with ‘of his failure’
L. T. Eames, BSc, FRICS, FCIOB 63.1 1 text replaced
F. Forward, BA(Hons), DipArch, MSc(Const Law), RIBA, FCIArb replace final sentence: ‘In all other . . . the event.’
Professor J. G. Perry, MEng, PhD, CEng, FICE, MAPM with ‘In all other cases, the date is the date of
N. C. Shaw, FCIPS, CEng, MIMechE the notification of the compensation event.’
T. W. Weddell, BSc, CEng, DIC, FICE, FIStructE, ACIArb
19 64.4 2 replace: ‘to this effect’ with ‘of his failure’
NEC Consultant:
25 91.4 1 text replaced
R. A. Gerrard, BSc(Hons), MRICS, FCIArb, FCInstCES
Secretariat: 28 63.14 2 delete: ‘instead of Defined Cost’

A. Cole, LLB, LLM, BL 29 63.13 last paragraph delete: ‘instead of Defined Cost’
J. M. Hawkins, BA(Hons), MSc
F. N. Vernon (Technical Adviser), BSc, CEng, MICE 33 63.14 1 insert new clause

The Institution of Civil Engineers acknowledges the help in preparing the third 37 63.13 last paragraph delete: ‘instead of Defined Cost’
edition given by many other people, in particular, by:
39 63.14 1 insert new clause
J. C. Broome, BEng
A. Else, BSc, CEng, FICE 41 63.14 1 insert new clause
C. Flook, Esq.
R. Lewendon, FICE, MIHT, MCIArb, MAPM 46 W2.3(7) 1 text replaced
T. H. Nicholson, BSc, FICE W2.3(8) added at end: new sentence
R. Patterson, BA, MA(Cantab), MBA, CEng, MICE W2.3(12) text replaced
C. Reed, CEng, MA, MSc, FICE
55 Y(UK)1 1 insert new clause: ‘Project Bank Account’
D. Weeks, FRICS
S. Zarka, FRICS 57 Y(UK)1 1 insert new clause: ‘Trust Deed’
58 Y(UK)1 1 insert new clause: ‘Joining Deed’
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Page Clause Line

59 Y2.1 (1) 1 text replaced
Y2.2 1 paragraph 3, text replaced
Y2.3 1 text replaced
64 41 3rd bullet: text replaced
65 Contract Data 4 date replaced with ‘April 2013’
Part one, 1.
73 Y(UK)3 1 text inserted
Y(UK)1 and 1 text inserted
Y(UK)3
75 Y(UK)1 1 text inserted
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SCHEDULE OF OPTIONS

The strategy for choosing the form of contract starts with a decision between
six main Options, one of which must be chosen.

Option A Priced contract with activity schedule

Option B Priced contract with bill of quantities
Option C Target contract with activity schedule
Option D Target contract with bill of quantities
Option E Cost reimbursable contract
Option F Management contract
One of the following dispute resolution Options must be selected to complete
the chosen main Option.
Option W1 Dispute resolution procedure (used unless the United Kingdom Housing
Grants, Construction and Regeneration Act 1996 applies).
Option W2 Dispute resolution procedure (used in the United Kingdom when the Housing
Grants, Construction and Regeneration Act 1996 applies).
The following secondary Options should then be considered. It is not necessary
to use any of them. Any combination other than those stated may be used.
Option X1 Price adjustment for inflation (used only with Options A, B, C and D)
Option X2 Changes in the law
Option X3 Multiple currencies (used only with Options A and B)
Option X4 Parent company guarantee
Option X5 Sectional Completion
Option X6 Bonus for early Completion
Option X7 Delay damages
Option X12 Partnering
Option X13 Performance bond
Option X14 Advanced payment to the Contractor
Option X15 Limitation of the Contractor’s liability for his design to reasonable skill and care
Option X16 Retention (not used with Option F)
Option X17 Low performance damages
Option X18 Limitation of liability
Option X20 Key Performance Indicators (not used with Option X12)
The following Options dealing with national legislation should be included if
required.
Option Y(UK)1 Project Bank Account
Option Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996
Option Y(UK)3 The Contracts (Rights of Third Parties) Act 1999
Option Z Additional conditions of contract
Note Options X8 to X11 and X19 are not used.

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®

Engineering and Construction Contract

Engineering and Construction Contract (9) A Key Date is the date by which work is to meet the Condition stated. The
Key Date is the key date stated in the Contract Data and the Condition is the
condition stated in the Contract Data unless later changed in accordance with
this contract.
(10) Others are people or organisations who are not the Employer, the Project
CORE CLAUSES Manager, the Supervisor, the Adjudicator, the Contractor or any employee,
Subcontractor or supplier of the Contractor.
(11) The Parties are the Employer and the Contractor.
(12) Plant and Materials are items intended to be included in the works.
1 General (13) To Provide the Works means to do the work necessary to complete the
works in accordance with this contract and all incidental work, services and
actions which this contract requires.
(14) The Risk Register is a register of the risks which are listed in the
Contract Data and the risks which the Project Manager or the Contractor has
Actions 10 notified as an early warning matter. It includes a description of the risk and a

core
core

clauses
clauses
10.1 The Employer, the Contractor, the Project Manager and the Supervisor shall description of the actions which are to be taken to avoid or reduce the risk.
act as stated in this contract and in a spirit of mutual trust and co-operation. (15) The Site is the area within the boundaries of the site and the volumes
above and below it which are affected by work included in this contract.
Identified and defined 11
terms 11.1 In these conditions of contract, terms identified in the Contract Data are in (16) Site Information is information which
italics and defined terms have capital initials. . describes the Site and its surroundings and
.

main
main
11.2 (1) The Accepted Programme is the programme identified in the Contract is in the documents which the Contract Data states it is in.
Data or is the latest programme accepted by the Project Manager. The latest (17) A Subcontractor is a person or organisation who has a contract with the

option clauses
option clauses
programme accepted by the Project Manager supersedes previous Accepted Contractor to
Programmes.
. construct or install part of the works,
(2) Completion is when the Contractor has . provide a service necessary to Provide the Works or
. done all the work which the Works Information states he is to do by the . supply Plant and Materials which the person or organisation has wholly
Completion Date and or partly designed specifically for the works.

secondary
secondary
. corrected notified Defects which would have prevented the Employer from
(18) The Working Areas are those parts of the working areas which are

option clauses
option clauses
using the works and Others from doing their work.
. necessary for Providing the Works and
If the work which the Contractor is to do by the Completion Date is not stated . used only for work in this contract
in the Works Information, Completion is when the Contractor has done all the
work necessary for the Employer to use the works and for Others to do their unless later changed in accordance with this contract.
work.

cost
cost
(19) Works Information is information which either
(3) The Completion Date is the completion date unless later changed in . specifies and describes the works or

components
components
accordance with this contract. . states any constraints on how the Contractor Provides the Works
(4) The Contract Date is the date when this contract came into existence. and is either
(5) A Defect is . in the documents which the Contract Data states it is in or
. a part of the works which is not in accordance with the Works Information . in an instruction given in accordance with this contract.

data
data

or

contract
contract

. a part of the works designed by the Contractor which is not in accordance Interpretation and the law 12
with the applicable law or the Contractor’s design which the Project 12.1 In this contract, except where the context shows otherwise, words in the
Manager has accepted. singular also mean in the plural and the other way round and words in the
masculine also mean in the feminine and neuter.
(6) The Defects Certificate is either a list of Defects that the Supervisor has
notified before the defects date which the Contractor has not corrected or, if 12.2 This contract is governed by the law of the contract.
there are no such Defects, a statement that there are none. 12.3 No change to this contract, unless provided for by the conditions of contract,
(7) Equipment is items provided by the Contractor and used by him to Provide has effect unless it has been agreed, confirmed in writing and signed by the
the Works and which the Works Information does not require him to include in Parties.
the works. 12.4 This contract is the entire agreement between the Parties.
(8) The Fee is the sum of the amounts calculated by applying the subcon-
tracted fee percentage to the Defined Cost of subcontracted work and the
direct fee percentage to the Defined Cost of other work.

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Core Clauses Engineering and Construction Contract

Communications 13 The Contractor may give an early warning by notifying the Project Manager of
13.1 Each instruction, certificate, submission, proposal, record, acceptance, any other matter which could increase his total cost. The Project Manager
notification, reply and other communication which this contract requires is enters early warning matters in the Risk Register. Early warning of a matter
communicated in a form which can be read, copied and recorded. Writing is in for which a compensation event has previously been notified is not required.
the language of this contract.
16.2 Either the Project Manager or the Contractor may instruct the other to attend a
13.2 A communication has effect when it is received at the last address notified by risk reduction meeting. Each may instruct other people to attend if the other
the recipient for receiving communications or, if none is notified, at the agrees.
address of the recipient stated in the Contract Data.
16.3 At a risk reduction meeting, those who attend co-operate in
13.3 If this contract requires the Project Manager, the Supervisor or the Contractor . making and considering proposals for how the effect of the registered
to reply to a communication, unless otherwise stated in this contract, he
risks can be avoided or reduced,
replies within the period for reply. . seeking solutions that will bring advantage to all those who will be
13.4 The Project Manager replies to a communication submitted or resubmitted to affected,
him by the Contractor for acceptance. If his reply is not acceptance, the . deciding on the actions which will be taken and who, in accordance with
Project Manager states his reasons and the Contractor resubmits the commu- this contract, will take them and
nication within the period for reply taking account of these reasons. A reason . deciding which risks have now been avoided or have passed and can be
for withholding acceptance is that more information is needed in order to removed from the Risk Register.

core
core

clauses
clauses
assess the Contractor’s submission fully.
16.4 The Project Manager revises the Risk Register to record the decisions made at
13.5 The Project Manager may extend the period for reply to a communication if the each risk reduction meeting and issues the revised Risk Register to the
Project Manager and the Contractor agree to the extension before the reply is Contractor. If a decision needs a change to the Works Information, the Project
due. The Project Manager notifies the Contractor of the extension which has Manager instructs the change at the same time as he issues the revised Risk
been agreed. Register.
13.6 The Project Manager issues his certificates to the Employer and the Contrac-

main
main
Ambiguities and 17
tor. The Supervisor issues his certificates to the Project Manager and the
inconsistencies 17.1 The Project Manager or the Contractor notifies the other as soon as either
Contractor.

option clauses
option clauses
becomes aware of an ambiguity or inconsistency in or between the documents
13.7 A notification which this contract requires is communicated separately from which are part of this contract. The Project Manager gives an instruction
other communications. resolving the ambiguity or inconsistency.
13.8 The Project Manager may withhold acceptance of a submission by the
Contractor. Withholding acceptance for a reason stated in this contract is not Illegal and impossible 18
a compensation event. requirements 18.1 The Contractor notifies the Project Manager as soon as he considers that the
Works Information requires him to do anything which is illegal or impossible.

secondary
secondary

option clauses
option clauses
If the Project Manager agrees, he gives an instruction to change the Works
The Project Manager and 14 Information appropriately.
the Supervisor 14.1 The Project Manager’s or the Supervisor’s acceptance of a communication
from the Contractor or of his work does not change the Contractor’s responsi-
Prevention 19
bility to Provide the Works or his liability for his design.
19.1 If an event occurs which

cost
cost
14.2 The Project Manager and the Supervisor, after notifying the Contractor, may . stops the Contractor completing the works or
delegate any of their actions and may cancel any delegation. A reference to . stops the Contractor completing the works by the date shown on the

components
components
an action of the Project Manager or the Supervisor in this contract includes an Accepted Programme,
action by his delegate.
and which
14.3 The Project Manager may give an instruction to the Contractor which changes
the Works Information or a Key Date. . neither Party could prevent and
. an experienced contractor would have judged at the Contract Date to

data
data

14.4 The Employer may replace the Project Manager or the Supervisor after he has have such a small chance of occurring that it would have been unreason-

contract
contract

notified the Contractor of the name of the replacement. able for him to have allowed for it,
Adding to the Working 15 the Project Manager gives an instruction to the Contractor stating how he is to
Areas 15.1 The Contractor may submit a proposal for adding an area to the Working deal with the event.
Areas to the Project Manager for acceptance. A reason for not accepting is
that the proposed area is either not necessary for Providing the Works or used
for work not in this contract.

Early warning 16
16.1 The Contractor and the Project Manager give an early warning by notifying the
other as soon as either becomes aware of any matter which could
. increase the total of the Prices,
. delay Completion,
. delay meeting a Key Date or
. impair the performance of the works in use.

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Core Clauses Engineering and Construction Contract

2 The Contractor’s main responsibilities 25.3 If the Project Manager decides that the work does not meet the Condition
stated for a Key Date by the date stated and, as a result, the Employer incurs
additional cost either
. in carrying out work or
. by paying an additional amount to Others in carrying out work
Providing the Works 20
20.1 The Contractor Provides the Works in accordance with the Works Information. on the same project, the additional cost which the Employer has paid or will
incur is paid by the Contractor. The Project Manager assesses the additional
The Contractor’s design 21 cost within four weeks of the date when the Condition for the Key Date is met.
21.1 The Contractor designs the parts of the works which the Works Information The Employer’s right to recover the additional cost is his only right in these
states he is to design. circumstances.
21.2 The Contractor submits the particulars of his design as the Works Information Subcontracting 26
requires to the Project Manager for acceptance. A reason for not accepting 26.1 If the Contractor subcontracts work, he is responsible for Providing the Works
the Contractor’s design is that it does not comply with either the Works as if he had not subcontracted. This contract applies as if a Subcontractor’s
Information or the applicable law. employees and equipment were the Contractor’s.
The Contractor does not proceed with the relevant work until the Project 26.2 The Contractor submits the name of each proposed Subcontractor to the

core
core
Manager has accepted his design.

clauses
clauses
Project Manager for acceptance. A reason for not accepting the Subcontractor
21.3 The Contractor may submit his design for acceptance in parts if the design of is that his appointment will not allow the Contractor to Provide the Works. The
each part can be assessed fully. Contractor does not appoint a proposed Subcontractor until the Project
Manager has accepted him.
Using the Contractor’s 22 26.3 The Contractor submits the proposed conditions of contract for each subcon-
design 22.1 The Employer may use and copy the Contractor’s design for any purpose tract to the Project Manager for acceptance unless
connected with construction, use, alteration or demolition of the works unless

main
main
otherwise stated in the Works Information and for other purposes as stated in . an NEC contract is proposed or
the Works Information. . the Project Manager has agreed that no submission is required.

option clauses
option clauses
The Contractor does not appoint a Subcontractor on the proposed subcontract
Design of Equipment 23 conditions submitted until the Project Manager has accepted them. A reason
23.1 The Contractor submits particulars of the design of an item of Equipment to for not accepting them is that
the Project Manager for acceptance if the Project Manager instructs him to. A
reason for not accepting is that the design of the item will not allow the Con- . they will not allow the Contractor to Provide the Works or
tractor to Provide the Works in accordance with . they do not include a statement that the parties to the subcontract shall

secondary
secondary
act in a spirit of mutual trust and co-operation.

option clauses
option clauses
. the Works Information,
. the Contractor’s design which the Project Manager has accepted or Other responsibilities 27
. the applicable law. 27.1 The Contractor obtains approval of his design from Others where necessary.
People 24 27.2 The Contractor provides access to work being done and to Plant and Materials

cost
cost
24.1 The Contractor either employs each key person named to do the job stated in being stored for this contract for
the Contract Data or employs a replacement person who has been accepted . the Project Manager,

components
components
by the Project Manager. The Contractor submits the name, relevant qualifica- . the Supervisor and
tions and experience of a proposed replacement person to the Project . Others notified to him by the Project Manager.
Manager for acceptance. A reason for not accepting the person is that his
relevant qualifications and experience are not as good as those of the person 27.3 The Contractor obeys an instruction which is in accordance with this contract
who is to be replaced. and is given to him by the Project Manager or the Supervisor.

data
data

24.2 The Project Manager may, having stated his reasons, instruct the Contractor 27.4 The Contractor acts in accordance with the health and safety requirements

contract
contract

to remove an employee. The Contractor then arranges that, after one day, the stated in the Works Information.
employee has no further connection with the work included in this contract.

Working with the Employer 25

and Others 25.1 The Contractor co-operates with Others in obtaining and providing information
which they need in connection with the works. He co-operates with Others and
shares the Working Areas with them as stated in the Works Information.
25.2 The Employer and the Contractor provide services and other things as stated
in the Works Information. Any cost incurred by the Employer as a result of the
Contractor not providing the services and other things which he is to provide is
assessed by the Project Manager and paid by the Contractor.

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Core Clauses Engineering and Construction Contract

3 Time Revising the programme 32

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,
Starting, Completion and 30 . how the Contractor plans to deal with any delays and to correct notified
Key Dates 30.1 The Contractor does not start work on the Site until the first access date and Defects and
does the work so that Completion is on or before the Completion Date. . any other changes which the Contractor proposes to make to the
30.2 The Project Manager decides the date of Completion. The Project Manager Accepted Programme.
certifies Completion within one week of Completion. 32.2 The Contractor submits a revised programme to the Project Manager for
30.3 The Contractor does the work so that the Condition stated for each Key Date acceptance
is met by the Key Date. . within the period for reply after the Project Manager has instructed him
to,
The programme 31 . when the Contractor chooses to and, in any case,
31.1 If a programme is not identified in the Contract Data, the Contractor submits . at no longer interval than the interval stated in the Contract Data from
a first programme to the Project Manager for acceptance within the period the starting date until Completion of the whole of the works.

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stated in the Contract Data.

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31.2 The Contractor shows on each programme which he submits for acceptance Access to and use of 33
the Site 33.1 The Employer allows access to and use of each part of the Site to the Contrac-
. the starting date, access dates, Key Dates and Completion Date, tor which is necessary for the work included in this contract. Access and use
. planned Completion, is allowed on or before the later of its access date and the date for access
. the order and timing of the operations which the Contractor plans to do shown on the Accepted Programme.
in order to Provide the Works,

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. the order and timing of the work of the Employer and Others as last
Instructions to stop or not 34
agreed with them by the Contractor or, if not so agreed, as stated in the to start work 34.1 The Project Manager may instruct the Contractor to stop or not to start any

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Works Information, work and may later instruct him that he may re-start or start it.
. 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 Take over 35
and Others to do their work, 35.1 The Employer need not take over the works before the Completion Date if it is
. provisions for
stated in the Contract Data that he is not willing to do so. Otherwise the
. float, Employer takes over the works not later than two weeks after Completion.

secondary
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. time risk allowances,

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35.2 The Employer may use any part of the works before Completion has been
. health and safety requirements and certified. If he does so, he takes over the part of the works when he begins to
. the procedures set out in this contract, use it except if the use is
. the dates when, in order to Provide the Works in accordance with his . for a reason stated in the Works Information or
programme, the Contractor will need . to suit the Contractor’s method of working.

cost
cost
. access to a part of the Site if later than its access date, 35.3 The Project Manager certifies the date upon which the Employer takes over

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. acceptances, any part of the works and its extent within one week of the date.
. Plant and Materials and other things to be provided by the Employer
and Acceleration 36
. information from Others,
36.1 The Project Manager may instruct the Contractor to submit a quotation for an
. for each operation, a statement of how the Contractor plans to do the acceleration to achieve Completion before the Completion Date. The Project
Manager states changes to the Key Dates to be included in the quotation. A

data
data

work identifying the principal Equipment and other resources which he

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contract

plans to use and quotation for an acceleration comprises proposed changes to the Prices and a
. other information which the Works Information requires the Contractor to revised programme showing the earlier Completion Date and the changed Key
show on a programme submitted for acceptance. Dates. The Contractor submits details of his assessment with each quotation.
31.3 Within two weeks of the Contractor submitting a programme to him for 36.2 The Contractor submits a quotation or gives his reasons for not doing so
acceptance, the Project Manager either accepts the programme or notifies the within the period for reply.
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 or
. it does not comply with the Works Information.

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Core Clauses Engineering and Construction Contract

4 Testing and Defects 43.3 The Supervisor issues the Defects Certificate at the later of the defects date
and the end of the last defect correction period. The Employer’s rights in
respect of a Defect which the Supervisor has not found or notified are not
affected by the issue of the Defects Certificate.
43.4 The Project Manager arranges for the Employer to allow the Contractor access
Tests and inspections 40 to and use of a part of the works which he has taken over if they are needed
40.1 This clause only applies to tests and inspections required by the Works Infor- for correcting a Defect. In this case the defect correction period begins when
mation or the applicable law. the necessary access and use have been provided.
40.2 The Contractor and the Employer provide materials, facilities and samples for
tests and inspections as stated in the Works Information. Accepting Defects 44
44.1 The Contractor and the Project Manager may each propose to the other that
40.3 The Contractor and the Supervisor each notifies the other of each of his the Works Information should be changed so that a Defect does not have to
tests and inspections before it starts and afterwards notifies the other of its be corrected.
results. The Contractor notifies the Supervisor in time for a test or inspection
to be arranged and done before doing work which would obstruct the test or 44.2 If the Contractor and the Project Manager are prepared to consider the
inspection. The Supervisor may watch any test done by the Contractor. change, the Contractor submits a quotation for reduced Prices or an earlier
Completion Date or both to the Project Manager for acceptance. If the Project
40.4 If a test or inspection shows that any work has a Defect, the Contractor

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Manager accepts the quotation, he gives an instruction to change the Works

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corrects the Defect and the test or inspection is repeated. Information, the Prices and the Completion Date accordingly.
40.5 The Supervisor does his tests and inspections without causing unnecessary
delay to the work or to a payment which is conditional upon a test or inspec- Uncorrected Defects 45
tion being successful. A payment which is conditional upon a Supervisor’s test 45.1 If the Contractor is given access in order to correct a notified Defect but he
or inspection being successful becomes due at the later of the defects date has not corrected it within its defect correction period, the Project Manager
and the end of the last defect correction period if assesses the cost to the Employer of having the Defect corrected by other

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people and the Contractor pays this amount. The Works Information is treated
. the Supervisor has not done the test or inspection and as having been changed to accept the Defect.
. the delay to the test or inspection is not the Contractor’s fault.

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45.2 If the Contractor is not given access in order to correct a notified Defect
40.6 The Project Manager assesses the cost incurred by the Employer in repeating before the defects date, the Project Manager assesses the cost to the Contrac-
a test or inspection after a Defect is found. The Contractor pays the amount tor of correcting the Defect and the Contractor pays this amount. The Works
assessed. Information is treated as having been changed to accept the Defect.
Testing and inspection 41

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before delivery 41.1 The Contractor does not bring to the Working Areas those Plant and Materials

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which the Works Information states are to be tested or inspected before
delivery until the Supervisor has notified the Contractor that they have passed
the test or inspection.

Searching for and 42

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cost
notifying Defects 42.1 Until the defects date, the Supervisor may instruct the Contractor to search for
a Defect. He gives his reason for the search with his instruction. Searching

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may include
. uncovering, dismantling, re-covering and re-erecting work,
. providing facilities, materials and samples for tests and inspections done
by the Supervisor and
. doing tests and inspections which the Works Information does not

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data

require.

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42.2 Until the defects date, the Supervisor notifies the Contractor of each Defect as
soon as he finds it and the Contractor notifies the Supervisor of each Defect
as soon as he finds it.

Correcting Defects 43
43.1 The Contractor corrects a Defect whether or not the Supervisor notifies him of
it.
43.2 The Contractor corrects a notified Defect before the end of the defect
correction period. The defect correction period begins at Completion for
Defects notified before Completion and when the Defect is notified for other
Defects.

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Core Clauses Engineering and Construction Contract

5 Payment Defined Cost 52

52.1 All the Contractor’s costs which are not included in the Defined Cost are
treated as included in the Fee. Defined Cost includes only amounts calculated
using rates and percentages stated in the Contract Data and other amounts
at open market or competitively tendered prices with deductions for all
Assessing the amount due 50 discounts, rebates and taxes which can be recovered.
50.1 The Project Manager assesses the amount due at each assessment date. The
first assessment date is decided by the Project Manager to suit the
procedures of the Parties and is not later than the assessment interval after
the starting date. Later assessment dates occur
. at the end of each assessment interval until four weeks after the Supervisor
issues the Defects Certificate and
. at Completion of the whole of the works.
50.2 The amount due is
. the Price for Work Done to Date,
. plus other amounts to be paid to the Contractor,

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. less amounts to be paid by or retained from the Contractor.
Any tax which the law requires the Employer to pay to the Contractor is
included in the amount due.
50.3 If no programme is identified in the Contract Data, one quarter of the Price
for Work Done to Date is retained in assessments of the amount due until
the Contractor has submitted a first programme to the Project Manager for

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acceptance showing the information which this contract requires.

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50.4 In assessing the amount due, the Project Manager considers any application
for payment the Contractor has submitted on or before the assessment date.
The Project Manager gives the Contractor details of how the amount due has
been assessed.
50.5 The Project Manager corrects any wrongly assessed amount due in a later
payment certificate.

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Payment 51
51.1 The Project Manager certifies a payment within one week of each assessment
date. The first payment is the amount due. Other payments are the change in
the amount due since the last payment certificate. A payment is made by the
Contractor to the Employer if the change reduces the amount due. Other

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cost
payments are made by the Employer to the Contractor. Payments are in the

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components
currency of this contract unless otherwise stated in this contract.
51.2 Each certified payment is made within three weeks of the assessment date or,
if a different period is stated in the Contract Data, within the period stated. If
a certified payment is late, or if a payment is late because the Project
Manager does not issue a certificate which he should issue, interest is paid

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data

on the late payment. Interest is assessed from the date by which the late

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contract

payment should have been made until the date when the late payment is
made, and is included in the first assessment after the late payment is made.
51.3 If an amount due is corrected in a later certificate either
. by the Project Manager in relation to a mistake or a compensation event
or
. following a decision of the Adjudicator or the tribunal,
interest on the correcting amount is paid. Interest is assessed from the date
when the incorrect amount was certified until the date when the correcting
amount is certified and is included in the assessment which includes the
correcting amount.
51.4 Interest is calculated on a daily basis at the interest rate and is compounded
annually.

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Core Clauses Engineering and Construction Contract

6 Compensation events Only the difference between the weather measurement and the weather which
the weather data show to occur on average less frequently than once in ten
years is taken into account in assessing a compensation event.
(14) An event which is an Employer’s risk stated in this contract.
Compensation events 60 (15) The Project Manager certifies take over of a part of the works before
60.1 The following are compensation events. both Completion and the Completion Date.
(1) The Project Manager gives an instruction changing the Works Information (16) The Employer does not provide materials, facilities and samples for tests
except and inspections as stated in the Works Information.
. a change made in order to accept a Defect or (17) The Project Manager notifies a correction to an assumption which he has
. a change to the Works Information provided by the Contractor for his stated about a compensation event.
design which is made either at his request or to comply with other Works (18) A breach of contract by the Employer which is not one of the other
Information provided by the Employer. compensation events in this contract.
(2) The Employer does not allow access to and use of a part of the Site by the (19) An event which
later of its access date and the date shown on the Accepted Programme.
. stops the Contractor completing the works or

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core
(3) The Employer does not provide something which he is to provide by the

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. stops the Contractor completing the works by the date shown on the
date for providing it shown on the Accepted Programme. Accepted Programme,
(4) The Project Manager gives an instruction to stop or not to start any work and which
or to change a Key Date.
. neither Party could prevent,
(5) The Employer or Others . an experienced contractor would have judged at the Contract Date to
. do not work within the times shown on the Accepted Programme, have such a small chance of occurring that it would have been unreason-

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. do not work within the conditions stated in the Works Information or able for him to have allowed for it and
. carry out work on the Site that is not stated in the Works Information. . is not one of the other compensation events stated in this contract.

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(6) The Project Manager or the Supervisor does not reply to a communication 60.2 In judging the physical conditions for the purpose of assessing a compensa-
from the Contractor within the period required by this contract. tion event, the Contractor is assumed to have taken into account
(7) The Project Manager gives an instruction for dealing with an object of . the Site Information,
value or of historical or other interest found within the Site. . publicly available information referred to in the Site Information,
. information obtainable from a visual inspection of the Site and

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(8) The Project Manager or the Supervisor changes a decision which he has . other information which an experienced contractor could reasonably be

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previously communicated to the Contractor. expected to have or to obtain.
(9) The Project Manager withholds an acceptance (other than acceptance of 60.3 If there is an ambiguity or inconsistency within the Site Information (including
a quotation for acceleration or for not correcting a Defect) for a reason not the information referred to in it), the Contractor is assumed to have taken into
stated in this contract. account the physical conditions more favourable to doing the work.

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cost
(10) The Supervisor instructs the Contractor to search for a Defect and no
Defect is found unless the search is needed only because the Contractor gave Notifying compensation 61

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components
insufficient notice of doing work obstructing a required test or inspection. events 61.1 For compensation events which arise from the Project Manager or the Supervi-
sor giving an instruction, issuing a certificate, changing an earlier decision or
(11) A test or inspection done by the Supervisor causes unnecessary delay. correcting an assumption, the Project Manager notifies the Contractor of the
(12) The Contractor encounters physical conditions which compensation event at the time of that communication. He also instructs the
Contractor to submit quotations, unless the event arises from a fault of the
. are within the Site, Contractor or quotations have already been submitted. The Contractor puts

data
data

. are not weather conditions and

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contract

the instruction or changed decision into effect.

. an experienced contractor would have judged at the Contract Date to
have such a small chance of occurring that it would have been unreason- 61.2 The Project Manager may instruct the Contractor to submit quotations for a
able for him to have allowed for them. proposed instruction or a proposed changed decision. The Contractor does not
put a proposed instruction or a proposed changed decision into effect.
Only the difference between the physical conditions encountered and those
for which it would have been reasonable to have allowed is taken into account 61.3 The Contractor notifies the Project Manager of an event which has happened
in assessing a compensation event. or which he expects to happen as a compensation event if
(13) A weather measurement is recorded . the Contractor believes that the event is a compensation event and
. the Project Manager has not notified the event to the Contractor.
. within a calendar month,
. before the Completion Date for the whole of the works and If the Contractor does not notify a compensation event within eight weeks of
. at the place stated in the Contract Data becoming aware of the event, he is not entitled to a change in the Prices, the
Completion Date or a Key Date unless the event arises from the Project Man-
the value of which, by comparison with the weather data, is shown to occur on ager or the Supervisor giving an instruction, issuing a certificate, changing an
average less frequently than once in ten years. earlier decision or correcting an assumption.

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Core Clauses Engineering and Construction Contract

61.4 If the Project Manager decides that an event notified by the Contractor 62.5 The Project Manager extends the time allowed for
. arises from a fault of the Contractor, . the Contractor to submit quotations for a compensation event and
. has not happened and is not expected to happen, . the Project Manager to reply to a quotation
. has no effect upon Defined Cost, Completion or meeting a Key Date or if the Project Manager and the Contractor agree to the extension before the
. is not one of the compensation events stated in this contract submission or reply is due. The Project Manager notifies the extension that
he notifies the Contractor of his decision that the Prices, the Completion Date has been agreed to the Contractor.
and the Key Dates are not to be changed. If the Project Manager decides 62.6 If the Project Manager does not reply to a quotation within the time allowed,
otherwise, he notifies the Contractor accordingly and instructs him to submit the Contractor may notify the Project Manager of his failure. If the Contractor
quotations. submitted more than one quotation for the compensation event, he states in
The Project Manager notifies his decision to the Contractor and, if his decision his notification which quotation he proposes is to be accepted. If the Project
is that the Prices, the Completion Date or the Key Dates are to be changed, Manager does not reply to the notification within two weeks, and unless the
instructs him to submit quotations before the end of either quotation is for a proposed instruction or a proposed changed decision,
the Contractor’s notification is treated as acceptance of the quotation by the
. one week after the Contractor’s notification or Project Manager.
. a longer period to which the Contractor has agreed.
If the Project Manager does not notify his decision, the Contractor may notify Assessing compensation 63

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core
events 63.1 The changes to the Prices are assessed as the effect of the compensation

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the Project Manager of his failure. A failure by the Project Manager to reply
within two weeks of this notification is treated as acceptance by the Project event upon
Manager that the event is a compensation event and an instruction to submit . the actual Defined Cost of the work already done,
quotations. . the forecast Defined Cost of the work not yet done and
61.5 If the Project Manager decides that the Contractor did not give an early . the resulting Fee.
warning of the event which an experienced contractor could have given, he If the compensation event arose from the Project Manager or the Supervisor

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notifies this decision to the Contractor when he instructs him to submit giving an instruction, issuing a certificate, changing an earlier decision or cor-
quotations. recting an assumption, the date which divides the work already done from the

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61.6 If the Project Manager decides that the effects of a compensation event are work not yet done is the date of that communication. In all other cases, the
too uncertain to be forecast reasonably, he states assumptions about the date is the date of the notification of the compensation event.
event in his instruction to the Contractor to submit quotations. Assessment of 63.2 If the effect of a compensation event is to reduce the total Defined Cost, the
the event is based on these assumptions. If any of them is later found to have Prices are not reduced except as stated in this contract.
been wrong, the Project Manager notifies a correction.
63.3 A delay to the Completion Date is assessed as the length of time that, due to
61.7 A compensation event is not notified after the defects date.

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the compensation event, planned Completion is later than planned Completion

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as shown on the Accepted Programme. A delay to a Key Date is assessed as
Quotations for 62 the length of time that, due to the compensation event, the planned date
compensation events 62.1 After discussing with the Contractor different ways of dealing with the com- when the Condition stated for a Key Date will be met is later than the date
pensation event which are practicable, the Project Manager may instruct the shown on the Accepted Programme.
Contractor to submit alternative quotations. The Contractor submits the
63.4 The rights of the Employer and the Contractor to changes to the Prices, the

cost
cost
required quotations to the Project Manager and may submit quotations for
other methods of dealing with the compensation event which he considers Completion Date and the Key Dates are their only rights in respect of a

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practicable. compensation event.

62.2 Quotations for compensation events comprise proposed changes to the Prices 63.5 If the Project Manager has notified the Contractor of his decision that the
and any delay to the Completion Date and Key Dates assessed by the Contractor did not give an early warning of a compensation event which an
Contractor. The Contractor submits details of his assessment with each experienced contractor could have given, the event is assessed as if the
quotation. If the programme for remaining work is altered by the compensa- Contractor had given early warning.

data
data

tion event, the Contractor includes the alterations to the Accepted Programme 63.6 Assessment of the effect of a compensation event includes risk allowances

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contract

in his quotation. for cost and time for matters which have a significant chance of occurring and
62.3 The Contractor submits quotations within three weeks of being instructed to are at the Contractor’s risk under this contract.
do so by the Project Manager. The Project Manager replies within two weeks of 63.7 Assessments are based upon the assumptions that the Contractor reacts
the submission. His reply is competently and promptly to the compensation event, that any Defined Cost
.
and time due to the event are reasonably incurred and that the Accepted
an instruction to submit a revised quotation,
.
Programme can be changed.
an acceptance of a quotation,
. a notification that a proposed instruction will not be given or a proposed 63.8 A compensation event which is an instruction to change the Works Information
changed decision will not be made or in order to resolve an ambiguity or inconsistency is assessed as if the Prices,
. a notification that he will be making his own assessment. the Completion Date and the Key Dates were for the interpretation most
favourable to the Party which did not provide the Works Information.
62.4 The Project Manager instructs the Contractor to submit a revised quotation
only after explaining his reasons for doing so to the Contractor. The Contractor 63.9 If a change to the Works Information makes the description of the Condition
submits the revised quotation within three weeks of being instructed to do so. 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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Core Clauses Engineering and Construction Contract

The Project Manager’s 64 7 Title

assessments 64.1 The Project Manager assesses a compensation event
. if the Contractor has not submitted a quotation and details of his assess-
ment within the time allowed,
. if the Project Manager decides that the Contractor has not assessed the
compensation event correctly in a quotation and he does not instruct the The Employer’s title to 70
Contractor to submit a revised quotation, Plant and Materials 70.1 Whatever title the Contractor has to Plant and Materials which is outside the
. if, when the Contractor submits quotations for a compensation event, he Working Areas passes to the Employer if the Supervisor has marked it as for
has not submitted a programme or alterations to a programme which this contract.
this contract requires him to submit or 70.2 Whatever title the Contractor has to Plant and Materials passes to the
. if, when the Contractor submits quotations for a compensation event, the Employer if it has been brought within the Working Areas. The title to Plant
Project Manager has not accepted the Contractor’s latest programme for and Materials passes back to the Contractor if it is removed from the Working
one of the reasons stated in this contract. Areas with the Project Manager’s permission.
64.2 The Project Manager assesses a compensation event using his own assess-
ment of the programme for the remaining work if Marking Equipment, 71
Plant and Materials 71.1 The Supervisor marks Equipment, Plant and Materials which are outside the
. there is no Accepted Programme or outside the Working Areas Working Areas if

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core

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. the Contractor has not submitted a programme or alterations to a
. this contract identifies them for payment and
programme for acceptance as required by this contract.
. the Contractor has prepared them for marking as the Works Information
64.3 The Project Manager notifies the Contractor of his assessment of a compen- requires.
sation event and gives him details of it within the period allowed for the
Contractor’s submission of his quotation for the same event. This period Removing Equipment 72
starts when the need for the Project Manager’s assessment becomes 72.1 The Contractor removes Equipment from the Site when it is no longer needed

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apparent. unless the Project Manager allows it to be left in the works.
64.4 If the Project Manager does not assess a compensation event within the time

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allowed, the Contractor may notify the Project Manager of his failure. If the Objects and materials 73
Contractor submitted more than one quotation for the compensation event, within the Site 73.1 The Contractor has no title to an object of value or of historical or other
he states in his notification which quotation he proposes is to be accepted. If interest within the Site. The Contractor notifies the Project Manager when such
the Project Manager does not reply within two weeks of this notification the an object is found and the Project Manager instructs the Contractor how to
notification is treated as acceptance of the Contractor’s quotation by the deal with it. The Contractor does not move the object without instructions.
Project Manager. 73.2 The Contractor has title to materials from excavation and demolition only as

secondary
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stated in the Works Information.

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Implementing 65
compensation events 65.1 A compensation event is implemented when
. the Project Manager notifies his acceptance of the Contractor’s
quotation,

cost
cost
. the Project Manager notifies the Contractor of his own assessment or
. a Contractor’s quotation is treated as having been accepted by the

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Project Manager.
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.

data
data

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8 Risks and insurance Insurance cover 84

84.1 The Contractor provides the insurances stated in the Insurance Table except
any insurance which the Employer is to provide as stated in the Contract Data.
The Contractor provides additional insurances as stated in the Contract Data.
84.2 The insurances are in the joint names of the Parties and provide cover for
Employer’s risks 80 events which are at the Contractor’s risk from the starting date until the
80.1 The following are Employer’s risks. Defects Certificate or a termination certificate has been issued.
. Claims, proceedings, compensation and costs payable which are due to INSURANCE TABLE
. use or occupation of the Site by the works or for the purpose of the
works which is the unavoidable result of the works, Insurance against Minimum amount of cover or
. negligence, breach of statutory duty or interference with any legal right minimum limit of indemnity
by the Employer or by any person employed by or contracted to him
except the Contractor or Loss of or damage to the works, Plant The replacement cost, including the
. a fault of the Employer or a fault in his design. and Materials amount stated in the Contract Data
.
for the replacement of any Plant
Loss of or damage to Plant and Materials supplied to the Contractor by and Materials provided by the

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the Employer, or by Others on the Employer’s behalf, until the Contractor

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Employer
has received and accepted them.
. Loss of or damage to the works, Plant and Materials due to
Loss of or damage to Equipment The replacement cost
. war, civil war, rebellion, revolution, insurrection, military or usurped
power, Liability for loss of or damage to The amount stated in the Contract
. strikes, riots and civil commotion not confined to the Contractor’s property (except the works, Plant and Data for any one event with cross
employees or Materials and Equipment) and liability so that the insurance

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. radioactive contamination. liability for bodily injury to or death of applies to the Parties separately
a person (not an employee of the

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. Loss of or wear or damage to the parts of the works taken over by the
Contractor) caused by activity in
Employer, except loss, wear or damage occurring before the issue of the
connection with this contract
Defects Certificate which is due to
. a Defect which existed at take over, Liability for death of or bodily injury to The greater of the amount required
. an event occurring before take over which was not itself an Employer’s employees of the Contractor arising by the applicable law and the
risk or out of and in the course of their amount stated in the Contract Data

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secondary
. the activities of the Contractor on the Site after take over. employment in connection with this for any one event

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. Loss of or wear or damage to the works and any Equipment, Plant and contract
Materials retained on the Site by the Employer after a termination,
except loss, wear or damage due to the activities of the Contractor on the Insurance policies 85
Site after the termination. 85.1 Before the starting date and on each renewal of the insurance policy until the

cost
cost
. Additional Employer’s risks stated in the Contract Data. defects date, the Contractor submits to the Project Manager for acceptance
certificates which state that the insurance required by this contract is in force.

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components
The Contractor’s risks 81 The certificates are signed by the Contractor’s insurer or insurance broker. A
81.1 From the starting date until the Defects Certificate has been issued, the risks reason for not accepting the certificates is that they do not comply with this
which are not carried by the Employer are carried by the Contractor. contract.

Repairs 82 85.2 Insurance policies include a waiver by the insurers of their subrogation rights
against directors and other employees of every insured except where there is

data
data

82.1 Until the Defects Certificate has been issued and unless otherwise instructed
fraud.

contract
contract

by the Project Manager, the Contractor promptly replaces loss of and repairs
damage to the works, Plant and Materials. 85.3 The Parties comply with the terms and conditions of the insurance policies.

Indemnity 83 85.4 Any amount not recovered from an insurer is borne by the Employer for events
83.1 Each Party indemnifies the other against claims, proceedings, compensation which are at his risk and by the Contractor for events which are at his risk.
and costs due to an event which is at his risk.
If the Contractor 86
83.2 The liability of each Party to indemnify the other is reduced if events at the does not insure 86.1 The Employer may insure a risk which this contract requires the Contractor to
other Party’s risk contributed to the claims, proceedings, compensation and insure if the Contractor does not submit a required certificate. The cost of this
costs. The reduction is in proportion to the extent that events which were at the insurance to the Employer is paid by the Contractor.
other Party’s risk contributed, taking into account each Party’s responsibilities
under this contract. Insurance by the Employer 87
87.1 The Project Manager submits policies and certificates for insurances provided
by the Employer to the Contractor for acceptance before the starting date and
afterwards as the Contractor instructs. The Contractor accepts the policies
and certificates if they comply with this contract.

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Core Clauses Engineering and Construction Contract

87.2 The Contractor’s acceptance of an insurance policy or certificate provided by 9 Termination

the Employer does not change the responsibility of the Employer to provide
the insurances stated in the Contract Data.
87.3 The Contractor may insure a risk which this contract requires the Employer to
insure if the Employer does not submit a required policy or certificate. The
cost of this insurance to the Contractor is paid by the Employer. Termination 90
90.1 If either Party wishes to terminate the Contractor’s obligation to Provide the
Works he notifies the Project Manager and the other Party giving details of his
reason for terminating. The Project Manager issues a termination certificate to
both Parties promptly if the reason complies with this contract.
90.2 The Contractor may terminate only for a reason identified in the Termination
Table. The Employer may terminate for any reason. The procedures followed and
the amounts due on termination are in accordance with the Termination Table.

TERMINATION TABLE

Terminating Party Reason Procedure Amount due

core
core

clauses
clauses
The Employer A reason other P1 and P2 A1, A2 and A4
than R1–R21
R1–R15 or R18 P1, P2 and P3 A1 and A3
R17 or R20 P1 and P3 A1 and A2

main
main
R21 P1 and P4 A1 and A2

option clauses
option clauses
The Contractor R1–R10, R16 or P1 and P4 A1, A2 and A4
R19
R17 or R20 P1 and P4 A1 and A2

90.3 The procedures for termination are implemented immediately after the Project

secondary
secondary
Manager has issued a termination certificate.

option clauses
option clauses
90.4 Within thirteen weeks of termination, the Project Manager certifies a final
payment to or from the Contractor which is the Project Manager’s assessment
of the amount due on termination less the total of previous payments.
Payment is made within three weeks of the Project Manager’s certificate.

cost
cost
90.5 After a termination certificate has been issued, the Contractor does no further
work necessary to Provide the Works.

components
components
Reasons for termination 91
91.1 Either Party may terminate if the other Party has done one of the following or
its equivalent.
. If the other Party is an individual and has

data
data

contract
contract

. presented his petition for bankruptcy (R1),

. had a bankruptcy order made against him (R2),
. had a receiver appointed over his assets (R3) or
. made an arrangement with his creditors (R4).
. If the other Party is a company or partnership and has
. had a winding-up order made against it (R5),
. had a provisional liquidator appointed to it (R6),
. passed a resolution for winding-up (other than in order to amalgamate
or reconstruct) (R7),
. had an administration order made against it (R8),
. had a receiver, receiver and manager, or administrative receiver
appointed over the whole or a substantial part of its undertaking or
assets (R9) or
. made an arrangement with its creditors (R10).

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Core Clauses Engineering and Construction Contract

91.2 The Employer may terminate if the Project Manager has notified that the Payment on termination 93
Contractor has defaulted in one of the following ways and not put the default 93.1 The amount due on termination includes (A1)
right within four weeks of the notification. . an amount due assessed as for normal payments,
. Substantially failed to comply with his obligations (R11). . the Defined Cost for Plant and Materials
. Not provided a bond or guarantee which this contract requires (R12). . within the Working Areas or
. Appointed a Subcontractor for substantial work before the Project . to which the Employer has title and of which the Contractor has to
Manager has accepted the Subcontractor (R13).
accept delivery,
91.3 The Employer may terminate if the Project Manager has notified that the . other Defined Cost reasonably incurred in expectation of completing the
Contractor has defaulted in one of the following ways and not stopped
whole of the works,
defaulting within four weeks of the notification. . any amounts retained by the Employer and
. Substantially hindered the Employer or Others (R14). . a deduction of any un-repaid balance of an advanced payment.
. Substantially broken a health or safety regulation (R15).
93.2 The amount due on termination also includes one or more of the following as
91.4 The Contractor may terminate if the Employer has not paid an amount due set out in the Termination Table.
under the contract within eleven weeks of the date that it should have been
A2 The forecast Defined Cost of removing the Equipment.
paid (R16).

core
core
A3 A deduction of the forecast of the additional cost to the Employer of com-

clauses
clauses
91.5 Either Party may terminate if the Parties have been released under the law
pleting the whole of the works.
from further performance of the whole of this contract (R17).
A4 The direct fee percentage applied to
91.6 If the Project Manager has instructed the Contractor to stop or not to start any
substantial work or all work and an instruction allowing the work to re-start or . for Options A, B, C and D, any excess of the total of the Prices at the
start has not been given within thirteen weeks, Contract Date over the Price for Work Done to Date or
. for Options E and F, any excess of the first forecast of the Defined Cost
. the Employer may terminate if the instruction was due to a default by the

main
main
for the works over the Price for Work Done to Date less the Fee.
Contractor (R18),
. the Contractor may terminate if the instruction was due to a default by

option clauses
option clauses
the Employer (R19) and
. either Party may terminate if the instruction was due to any other reason
(R20).
91.7 The Employer may terminate if an event occurs which
. stops the Contractor completing the works or

secondary
secondary
. stops the Contractor completing the works by the date shown on the

option clauses
option clauses
Accepted Programme and is forecast to delay Completion by more than
13 weeks,
and which
. neither Party could prevent and

cost
cost
. an experienced contractor would have judged at the Contract Date to
have such a small chance of occurring that it would have been unreason-

components
able for him to have allowed for it (R21). components
Procedures on termination 92
92.1 On termination, the Employer may complete the works and may use any Plant
and Materials to which he has title (P1).

data
data

92.2 The procedure on termination also includes one or more of the following as

contract
contract

set out in the Termination Table.

P2 The Employer may instruct the Contractor to leave the Site, remove any
Equipment, Plant and Materials from the Site and assign the benefit of
any subcontract or other contract related to performance of this contract
to the Employer.
P3 The Employer may use any Equipment to which the Contractor has title to
complete the works. The Contractor promptly removes the Equipment
from Site when the Project Manager notifies him that the Employer no
longer requires it to complete the works.
P4 The Contractor leaves the Working Areas and removes the Equipment.

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Engineering and Construction Contract

MAIN OPTION CLAUSES 63.14 If the Project Manager and the Contractor agree, rates and lump sums may be
used to assess a compensation event.

Implementing 65
compensation events 65.4 The changes to the Prices, the Completion Date and the Key Dates are
Option A: Priced contract with activity schedule included in the notification implementing a compensation event.

Payment on termination 93
93.3 The amount due on termination is assessed without taking grouping of
activities into account.

Identified and defined 11

terms 11.2 (20) The Activity Schedule is the activity schedule unless later changed in
accordance with this contract.
(22) Defined Cost is the cost of the components in the Shorter Schedule of
Cost Components whether work is subcontracted or not excluding the cost of
preparing quotations for compensation events.

core
core

clauses
clauses
(27) The Price for Work Done to Date is the total of the Prices for
. each group of completed activities and
. each completed activity which is not in a group.
A completed activity is one which is without Defects which would either delay
or be covered by immediately following work.

main
main
(30) The Prices are the lump sum prices for each of the activities on the
Activity Schedule unless later changed in accordance with this contract.

option clauses
option clauses
The programme 31
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.

secondary
secondary
Acceleration 36

option clauses
option clauses
36.3 When the Project Manager accepts a quotation for an acceleration, he
changes the Prices, the Completion Date and the Key Dates accordingly and
accepts the revised programme.

The Activity Schedule 54

cost
cost
54.1 Information in the Activity Schedule is not Works Information or Site Information.

components
components
54.2 If the Contractor changes a planned method of working at his discretion so
that the activities on the Activity Schedule do not relate to the operations on
the Accepted Programme, he submits a revision of the Activity Schedule to the
Project Manager for acceptance.
54.3 A reason for not accepting a revision of the Activity Schedule is that

data
data

contract
contract

. it does not comply with the Accepted Programme,

. any changed Prices are not reasonably distributed between the activities
or
. the total of the Prices is changed.

Assessing compensation 63
events 63.10 If the effect of a compensation event is to reduce the total Defined Cost and
the event is
. a change to the Works Information or
. a correction of an assumption stated by the Project Manager for assessing
an earlier compensation event,
the Prices are reduced.
63.12 Assessments for changed Prices for compensation events are in the form of
changes to the Activity Schedule.

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Main Option Clauses Engineering and Construction Contract

Option B: Priced contract with bill of quantities Assessing compensation 63

events 63.10 If the effect of a compensation event is to reduce the total Defined Cost and
the event is
. a change to the Works Information or
. a correction of an assumption stated by the Project Manager for assessing
Identified and defined 11 an earlier compensation event,
terms 11.2 (21) The Bill of Quantities is the bill of quantities as changed in accordance
with this contract to accommodate implemented compensation events and for the Prices are reduced.
accepted quotations for acceleration. 63.13 Assessments for changed Prices for compensation events are in the form of
(22) Defined Cost is the cost of the components in the Shorter Schedule of changes to the Bill of Quantities.
Cost Components whether work is subcontracted or not excluding the cost of . For the whole or a part of a compensation event for work not yet done
preparing quotations for compensation events. and for which there is an item in the Bill of Quantities, the changes are
(28) The Price for Work Done to Date is the total of . a changed rate,
. the quantity of the work which the Contractor has completed for each . a changed quantity or
item in the Bill of Quantities multiplied by the rate and . a changed lump sum.
. a proportion of each lump sum which is the proportion of the work

core
core
. For the whole or a part of a compensation event for work not yet done

clauses
clauses
covered by the item which the Contractor has completed. and for which there is no item in the Bill of Quantities, the change is a
Completed work is work without Defects which would either delay or be new priced item which, unless the Project Manager and the Contractor
covered by immediately following work. agree otherwise, is compiled in accordance with the method of measure-
ment.
(31) The Prices are the lump sums and the amounts obtained by multiplying . For the whole or a part of a compensation event for work already done,
the rates by the quantities for the items in the Bill of Quantities. the change is a new lump sum item.

main
main
Acceleration 36 If the Project Manager and the Contractor agree, rates and lump sums may be
36.3 When the Project Manager accepts a quotation for an acceleration, he used to assess a compensation event.

option clauses
option clauses
changes the Prices, the Completion Date and the Key Dates accordingly and
accepts the revised programme. Implementing 65
compensation events 65.4 The changes to the Prices, the Completion Date and the Key Dates are
The Bill of Quantities 55 included in the notification implementing a compensation event.
55.1 Information in the Bill of Quantities is not Works Information or Site Information.

secondary
secondary
Compensation events 60

option clauses
option clauses
60.4 A difference between the final total quantity of work done and the quantity
stated for an item in the Bill of Quantities is a compensation event if
. the difference does not result from a change to the Works Information,
. the difference causes the Defined Cost per unit of quantity to change
and

cost
cost
. the rate in the Bill of Quantities for the item multiplied by the final total

components
components
quantity of work done is more than 0.5% of the total of the Prices at the
Contract Date.
If the Defined Cost per unit of quantity is reduced, the affected rate is
reduced.
60.5 A difference between the final total quantity of work done and the quantity for

data
data

contract
contract

an item stated in the Bill of Quantities which delays Completion or the meet-
ing of the Condition stated for a Key Date is a compensation event.
60.6 The Project Manager corrects mistakes in the Bill of Quantities which are
departures from the rules for item descriptions and for division of the work
into items in the method of measurement or are due to ambiguities or
inconsistencies. Each such correction is a compensation event which may
lead to reduced Prices.
60.7 In assessing a compensation event which results from a correction of an
inconsistency between the Bill of Quantities and another document, the
Contractor is assumed to have taken the Bill of Quantities as correct.

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Main Option Clauses Engineering and Construction Contract

Option C: Target contract with activity schedule 20.4 The Contractor prepares forecasts of the total Defined Cost for the whole of
the works in consultation with the Project Manager and submits them to
the Project Manager. Forecasts are prepared at the intervals stated in the
Contract Data from the starting date until Completion of the whole of the
works. An explanation of the changes made since the previous forecast is
submitted with each forecast.
Identified and defined 11
terms 11.2 (20) The Activity Schedule is the activity schedule unless later changed in Subcontracting 26
accordance with this contract. 26.4 The Contractor submits the proposed contract data for each subcontract for
(23) Defined Cost is acceptance to the Project Manager if
. . an NEC contract is proposed and
the amount of payments due to Subcontractors for work which is subcon-
. the Project Manager instructs the Contractor to make the submission.
tracted without taking account of amounts deducted for
. retention, A reason for not accepting the proposed contract data is that its use will not
. payment to the Employer as a result of the Subcontractor failing to allow the Contractor to Provide the Works.
meet a Key Date,
. the correction of Defects after Completion, The programme 31

core
core
. payments to Others and 31.4 The Contractor provides information which shows how each activity on the

clauses
clauses
. the supply of equipment, supplies and services included in the charge Activity Schedule relates to the operations on each programme which he
for overhead cost within the Working Areas in this contract submits for acceptance.

and Acceleration 36
. 36.3 When the Project Manager accepts a quotation for an acceleration, he
the cost of components in the Schedule of Cost Components for other
changes the Prices, the Completion Date and the Key Dates accordingly and
work
accepts the revised programme.

main
main
less Disallowed Cost.
Tests and inspections 40

option clauses
option clauses
(25) Disallowed Cost is cost which the Project Manager decides 40.7 When the Project Manager assesses the cost incurred by the Employer in
. is not justified by the Contractor’s accounts and records, repeating a test or inspection after a Defect is found, the Project Manager
. should not have been paid to a Subcontractor or supplier in accordance does not include the Contractor’s cost of carrying out the repeat test or
with his contract, inspection.
. was incurred only because the Contractor did not
Assessing the amount due 50

secondary
secondary
. follow an acceptance or procurement procedure stated in the Works 50.6 Payments of Defined Cost made by the Contractor in a currency other than the

option clauses
option clauses
Information or currency of this contract are included in the amount due as payments to be
. give an early warning which this contract required him to give
made to him in the same currency. Such payments are converted to the
and the cost of currency of this contract in order to calculate the Fee and any Contractor’s
share using the exchange rates.
. correcting Defects after Completion,

cost
cost
. correcting Defects caused by the Contractor not complying with a Defined Cost 52
constraint on how he is to Provide the Works stated in the Works 52.2 The Contractor keeps these records

components
components
Information,
. Plant and Materials not used to Provide the Works (after allowing for . accounts of payments of Defined Cost,
. proof that the payments have been made,
reasonable wastage) unless resulting from a change to the Works
. communications about and assessments of compensation events for
Information,
. resources not used to Provide the Works (after allowing for reasonable Subcontractors and
. other records as stated in the Works Information.

data
data

availability and utilisation) or not taken away from the Working Areas

contract
contract

when the Project Manager requested and 52.3 The Contractor allows the Project Manager to inspect at any time within
. preparation for and conduct of an adjudication or proceedings of the
working hours the accounts and records which he is required to keep.
tribunal.
(29) The Price for Work Done to Date is the total Defined Cost which the The Contractor’s share 53
Project Manager forecasts will have been paid by the Contractor before the 53.1 The Project Manager assesses the Contractor’s share of the difference
next assessment date plus the Fee. between the total of the Prices and the Price for Work Done to Date. The differ-
ence is divided into increments falling within each of the share ranges. The
(30) The Prices are the lump sum prices for each of the activities on the limits of a share range are the Price for Work Done to Date divided by the
Activity Schedule unless later changed in accordance with this contract. total of the Prices, expressed as a percentage. The Contractor’s share equals
the sum of the products of the increment within each share range and the
Providing the Works 20 corresponding Contractor’s share percentage.
20.3 The Contractor advises the Project Manager on the practical implications of
the design of the works and on subcontracting arrangements. 53.2 If the Price for Work Done to Date is less than the total of the Prices, the
Contractor is paid his share of the saving. If the Price for Work Done to Date is
greater than the total of the Prices, the Contractor pays his share of the
excess.

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Main Option Clauses Engineering and Construction Contract

53.3 The Project Manager makes a preliminary assessment of the Contractor’s Option D: Target contract with bill of quantities
share at Completion of the whole of the works using his forecasts of the final
Price for Work Done to Date and the final total of the Prices. This share is
included in the amount due following Completion of the whole of the works.
53.4 The Project Manager makes a final assessment of the Contractor’s share
using the final Price for Work Done to Date and the final total of the Prices. Identified and defined 11
This share is included in the final amount due. terms 11.2 (21) The Bill of Quantities is the bill of quantities as changed in accordance
with this contract to accommodate implemented compensation events and for
The Activity Schedule 54 accepted quotations for acceleration.
54.1 Information in the Activity Schedule is not Works Information or Site Information. (23) Defined Cost is
54.2 If the Contractor changes a planned method of working at his discretion so . the amount of payments due to Subcontractors for work which is subcon-
that the activities on the Activity Schedule do not relate to the operations on tracted without taking account of amounts deducted for
the Accepted Programme, he submits a revision of the Activity Schedule to the . retention,
Project Manager for acceptance. . payment to the Employer as a result of the Subcontractor failing to
54.3 A reason for not accepting a revision of the Activity Schedule is that meet a Key Date,
. the correction of Defects after Completion,

core
core
. it does not comply with the Accepted Programme, . payments to Others and

clauses
clauses
. any changed Prices are not reasonably distributed between the activities . the supply of equipment, supplies and services included in the charge
or for overhead cost within the Working Areas in this contract
. the total of the Prices is changed.
and
Assessing compensation 63 . the cost of components in the Schedule of Cost Components for other
events 63.11 If the effect of a compensation event is to reduce the total Defined Cost and work

main
main
the event is
less Disallowed Cost.
. a change to the Works Information, other than a change to the Works

option clauses
option clauses
Information provided by the Employer which the Contractor proposed and (25) Disallowed Cost is cost which the Project Manager decides
the Project Manager has accepted or . is not justified by the Contractor’s accounts and records,
. a correction of an assumption stated by the Project Manager for asses- . should not have been paid to a Subcontractor or supplier in accordance
sing an earlier compensation event, with his contract,
. was incurred only because the Contractor did not
the Prices are reduced.
.

secondary
secondary
63.12 Assessments for changed Prices for compensation events are in the form of follow an acceptance or procurement procedure stated in the Works

option clauses
option clauses
changes to the Activity Schedule. Information or
. give an early warning which this contract required him to give
63.14 If the Project Manager and the Contractor agree, rates and lump sums may be
used to assess a compensation event. and the cost of
. correcting Defects after Completion,
63.15 If the Project Manager and the Contractor agree, the Contractor assesses a

cost
cost
. correcting Defects caused by the Contractor not complying with a con-
compensation event using the Shorter Schedule of Cost Components. The
Project Manager may make his own assessments using the Shorter Schedule straint on how he is to Provide the Works stated in the Works Information,

components
components
. Plant and Materials not used to Provide the Works (after allowing for
of Cost Components.
reasonable wastage) unless resulting from a change to the Works Infor-
Implementing 65 mation,
. resources not used to Provide the Works (after allowing for reasonable
compensation events 65.4 The changes to the Prices, the Completion Date and the Key Dates are
included in the notification implementing a compensation event. availability and utilisation) or not taken away from the Working Areas
when the Project Manager requested and

data
data

contract
contract

. preparation for and conduct of an adjudication or proceedings of the

Payment on termination 93
tribunal.
93.4 If there is a termination, the Project Manager assesses the Contractor’s share
after he has certified termination. His assessment uses, as the Price for Work (29) The Price for Work Done to Date is the total Defined Cost which the
Done to Date, the total of the Defined Cost which the Contractor has paid and Project Manager forecasts will have been paid by the Contractor before the next
which he is committed to pay for work done before termination. The assess- assessment date plus the Fee.
ment uses as the total of the Prices (31) The Prices are the lump sums and the amounts obtained by multiplying
. the lump sum price for each activity which has been completed and the rates by the quantities for the items in the Bill of Quantities.
. a proportion of the lump sum price for each incomplete activity which is (33) The Total of the Prices is the total of
the proportion of the work in the activity which has been completed. . the quantity of the work which the Contractor has completed for each
93.6 The Project Manager’s assessment of the Contractor’s share is added to the item in the Bill of Quantities multiplied by the rate and
amount due to the Contractor on termination if there has been a saving or . a proportion of each lump sum which is the proportion of the work
deducted if there has been an excess. covered by the item which the Contractor has completed.
Completed work is work without Defects which would either delay or be
covered by immediately following work.

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Main Option Clauses Engineering and Construction Contract

Providing the Works 20 53.7 The Project Manager makes a preliminary assessment of the Contractor’s
20.3 The Contractor advises the Project Manager on the practical implications of share at Completion of the whole of the works using his forecasts of the final
the design of the works and on subcontracting arrangements. Price for Work Done to Date and the final Total of the Prices. This share is
included in the amount due following Completion of the whole of the works.
20.4 The Contractor prepares forecasts of the total Defined Cost for the whole of
the works in consultation with the Project Manager and submits them to the 53.8 The Project Manager makes a final assessment of the Contractor’s share
Project Manager. Forecasts are prepared at the intervals stated in the using the final Price for Work Done to Date and the final Total of the Prices.
Contract Data from the starting date until Completion of the whole of the This share is included in the final amount due.
works. An explanation of the changes made since the previous forecast is
submitted with each forecast. The Bill of Quantities 55
55.1 Information in the Bill of Quantities is not Works Information or Site Informa-
Subcontracting 26 tion.
26.4 The Contractor submits the proposed contract data for each subcontract for
acceptance to the Project Manager if Compensation events 60
. 60.4 A difference between the final total quantity of work done and the quantity
an NEC contract is proposed and
.
stated for an item in the Bill of Quantities is a compensation event if
the Project Manager instructs the Contractor to make the submission.
. the difference does not result from a change to the Works Information,
A reason for not accepting the proposed contract data is that its use will not

core
core
. the difference causes the Defined Cost per unit of quantity to change

clauses
clauses
allow the Contractor to Provide the Works.
and
. the rate in the Bill of Quantities for the item multiplied by the final total
Acceleration 36
quantity of work done is more than 0.5% of the total of the Prices at the
36.3 When the Project Manager accepts a quotation for an acceleration, he
Contract Date.
changes the Prices, the Completion Date and the Key Dates accordingly and
accepts the revised programme. If the Defined Cost per unit of quantity is reduced, the affected rate is
reduced.

main
main
Tests and inspections 40
60.5 A difference between the final total quantity of work done and the quantity for
40.7 When the Project Manager assesses the cost incurred by the Employer in

option clauses
option clauses
an item stated in the Bill of Quantities which delays Completion or the meet-
repeating a test or inspection after a Defect is found, the Project Manager
ing of the Condition stated for a Key Date is a compensation event.
does not include the Contractor’s cost of carrying out the repeat test or
inspection. 60.6 The Project Manager corrects mistakes in the Bill of Quantities which are
departures from the rules for item descriptions and for division of the work
Assessing the amount due 50 into items in the method of measurement or are due to ambiguities or
50.6 Payments of Defined Cost made by the Contractor in a currency other than the inconsistencies. Each such correction is a compensation event which may

secondary
secondary
currency of this contract are included in the amount due as payments to be lead to reduced Prices.

option clauses
option clauses
made to him in the same currency. Such payments are converted to the
60.7 In assessing a compensation event which results from a correction of an
currency of this contract in order to calculate the Fee and any Contractor’s
inconsistency between the Bill of Quantities and another document, the
share using the exchange rates.
Contractor is assumed to have taken the Bill of Quantities as correct.
Defined Cost 52
Assessing compensation 63

cost
cost
52.2 The Contractor keeps these records
events 63.11 If the effect of a compensation event is to reduce the total Defined Cost and

components
components
. accounts of payments of Defined Cost, the event is
. proof that the payments have been made, . a change to the Works Information, other than a change to the Works
. communications about and assessments of compensation events for
Subcontractors and Information provided by the Employer which the Contractor proposed and
. other records as stated in the Works Information. the Project Manager has accepted or
. a correction of an assumption stated by the Project Manager for asses-

data
data

52.3 The Contractor allows the Project Manager to inspect at any time within sing an earlier compensation event,

contract
contract

working hours the accounts and records which he is required to keep.

the Prices are reduced.
The Contractor’s share 53 63.13 Assessments for changed Prices for compensation events are in the form of
53.5 The Project Manager assesses the Contractor’s share of the difference changes to the Bill of Quantities.
between the Total of the Prices and the Price for Work Done to Date. The .
difference is divided into increments falling within each of the share ranges. For the whole or a part of a compensation event for work not yet done
The limits of a share range are the Price for Work Done to Date divided by the and for which there is an item in the Bill of Quantities, the changes are
Total of the Prices, expressed as a percentage. The Contractor’s share equals . a changed rate,
the sum of the products of the increment within each share range and the . a changed quantity or
corresponding Contractor’s share percentage. . a changed lump sum.
53.6 If the Price for Work Done to Date is less than the Total of the Prices, the . For the whole or a part of a compensation event for work not yet done and
Contractor is paid his share of the saving. If the Price for Work Done to Date is for which there is no item in the Bill of Quantities, the change is a new
greater than the Total of the Prices, the Contractor pays his share of the priced item which, unless the Project Manager and the Contractor agree
excess. otherwise, is compiled in accordance with the method of measurement.

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Main Option Clauses Engineering and Construction Contract

. For the whole or a part of a compensation event for work already done, Option E: Cost reimbursable contract
the change is a new lump sum item.
If the Project Manager and the Contractor agree, rates and lump sums may be
used to assess a compensation event.
63.15 If the Project Manager and the Contractor agree, the Contractor assesses a
compensation event using the Shorter Schedule of Cost Components. The Identified and defined 11
Project Manager may make his own assessments using the Shorter Schedule terms 11.2 (23) Defined Cost is
of Cost Components. . the amount of payments due to Subcontractors for work which is subcon-
tracted without taking account of amounts deducted for
Implementing 65
. retention,
compensation events 65.4 The changes to the Prices, the Completion Date and the Key Dates are
. payment to the Employer as a result of the Subcontractor failing to
included in the notification implementing a compensation event.
meet a Key Date,
. the correction of Defects after Completion,
Payment on termination 93
. payments to Others and
93.5 If there is a termination, the Project Manager assesses the Contractor’s share
. the supply of equipment, supplies and services included in the charge
after he has certified termination. His assessment uses, as the Price for Work
for overhead cost within the Working Areas in this contract

core
core
Done to Date, the total of the Defined Cost which the Contractor has paid and

clauses
clauses
which he is committed to pay for work done before termination. and
93.6 The Project Manager’s assessment of the Contractor’s share is added to the . the cost of components in the Schedule of Cost Components for other
amounts due to the Contractor on termination if there has been a saving or work
deducted if there has been an excess.
less Disallowed Cost.
(25) Disallowed Cost is cost which the Project Manager decides

main
main
. is not justified by the Contractor’s accounts and records,

option clauses
option clauses
. should not have been paid to a Subcontractor or supplier in accordance
with his contract,
. was incurred only because the Contractor did not

. follow an acceptance or procurement procedure stated in the Works

Information or
. give an early warning which this contract required him to give

secondary
secondary

option clauses
option clauses
and the cost of
. correcting Defects after Completion,
. correcting Defects caused by the Contractor not complying with a const-
raint on how he is to Provide the Works stated in the Works Information,
. Plant and Materials not used to Provide the Works (after allowing for

cost
cost
reasonable wastage) unless resulting from a change to the Works Infor-
mation,

components
components . resources not used to Provide the Works (after allowing for reasonable
availability and utilisation) or not taken away from the Working Areas
when the Project Manager requested and
. preparation for and conduct of an adjudication or proceedings of the
tribunal.

data
data

contract
contract

(29) The Price for Work Done to Date is the total Defined Cost which the
Project Manager forecasts will have been paid by the Contractor before the
next assessment date plus the Fee.
(32) The Prices are the Defined Cost plus the Fee.

Providing the Works 20

20.3 The Contractor advises the Project Manager on the practical implications of
the design of the works and on subcontracting arrangements.
20.4 The Contractor prepares forecasts of the total Defined Cost for the whole of
the works in consultation with the Project Manager and submits them to the
Project Manager. Forecasts are prepared at the intervals stated in the
Contract Data from the starting date until Completion of the whole of the
works. An explanation of the changes made since the previous forecast is
submitted with each forecast.

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Main Option Clauses Engineering and Construction Contract

Subcontracting 26 Option F: Management contract

26.4 The Contractor submits the proposed contract data for each subcontract for
acceptance to the Project Manager if
. an NEC contract is proposed and
. the Project Manager instructs the Contractor to make the submission.
A reason for not accepting the proposed contract data is that its use will not Identified and defined 11
allow the Contractor to Provide the Works. terms 11.2 (24) Defined Cost is
. the amount of payments due to Subcontractors for work which is subcon-
Acceleration 36 tracted without taking account of amounts deducted for
36.4 When the Project Manager accepts a quotation for an acceleration, he
. retention,
changes the Completion Date, the Key Dates and the forecast of the total
. payment to the Employer as a result of the Subcontractor failing to
Defined Cost of the whole of the works accordingly and accepts the revised
programme. meet a Key Date,
. the correction of Defects after Completion,
. payments to Others,
Tests and inspections 40
. the supply of equipment, supplies and services included in the charge
40.7 When the Project Manager assesses the cost incurred by the Employer in
for overhead cost within the Working Areas in this contract

core
core
repeating a test or inspection after a Defect is found, the Project Manager

clauses
clauses
does not include the Contractor’s cost of carrying out the repeat test or and
inspection.
. the prices for work done by the Contractor himself
Assessing the amount due 50 less Disallowed Cost.
50.7 Payments of Defined Cost made by the Contractor in a currency other than the
currency of this contract are included in the amount due as payments to be (26) Disallowed Cost is cost which the Project Manager decides

main
main
made to him in the same currency. Such payments are converted to the . is not justified by the accounts and records provided by the Contractor,
currency of this contract in order to calculate the Fee using the exchange . should not have been paid to a Subcontractor or supplier in accordance

option clauses
option clauses
rates. with his contract,
. was incurred only because the Contractor did not
Defined Cost 52
. follow an acceptance or procurement procedure stated in the Works
52.2 The Contractor keeps these records
Information or
. accounts of payments of Defined Cost, . give an early warning which this contract required him to give or
. proof that the payments have been made,

secondary
secondary
. . is a payment to a Subcontractor for
communications about and assessments of compensation events for

option clauses
option clauses
Subcontractors and . work which the Contract Data states that the Contractor will do himself
. other records as stated in the Works Information. or
. the Contractor’s management.
52.3 The Contractor allows the Project Manager to inspect at any time within
working hours the accounts and records which he is required to keep. (29) The Price for Work Done to Date is the total Defined Cost which the

cost
cost
Project Manager forecasts will have been paid by the Contractor before the
Assessing compensation 63 next assessment date plus the Fee.

components
components
events 63.14 If the Project Manager and the Contractor agree, rates and lump sums may be
used to assess a compensation event. (32) The Prices are the Defined Cost plus the Fee.

63.15 If the Project Manager and the Contractor agree, the Contractor assesses a Providing the Works 20
compensation event using the Shorter Schedule of Cost Components. The 20.2 The Contractor manages the Contractor’s design, the provision of Site services
Project Manager may make his own assessments using the Shorter Schedule and the construction and installation of the works. The Contractor subcon-

data
data

of Cost Components. tracts the Contractor’s design, the provision of Site services and the

contract
contract

construction and installation of the works except work which the Contract
Implementing 65 Data states that he will do himself.
compensation events 65.3 The changes to the forecast amount of the Prices, the Completion Date and
the Key Dates are included in the notification implementing a compensation 20.3 The Contractor advises the Project Manager on the practical implications of
event. the design of the works and on subcontracting arrangements.
20.4 The Contractor prepares forecasts of the total Defined Cost for the whole of
the works in consultation with the Project Manager and submits them to the
Project Manager. Forecasts are prepared at the intervals stated in the
Contract Data from the starting date until Completion of the whole of the
works. An explanation of the changes made since the previous forecast is
submitted with each forecast.

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Main Option Clauses

20.5 If work which the Contractor is to do himself is affected by a compensation DISPUTE RESOLUTION
event, the Project Manager and the Contractor agree the change to the price
for the work and any change to the Completion Date and Key Dates. If they
cannot agree, the Project Manager decides the change.

Subcontracting 26 Option W1
26.4 The Contractor submits the proposed contract data for each subcontract for
acceptance to the Project Manager if
. an NEC contract is proposed and
. the Project Manager instructs the Contractor to make the submission.
A reason for not accepting the proposed contract data is that its use will not Dispute resolution procedure (used unless the United Kingdom Housing Grants, Construction and Regeneration Act
allow the Contractor to Provide the Works. 1996 applies).

Acceleration 36 Dispute resolution W1

36.4 When the Project Manager accepts a quotation for an acceleration, he W1.1 A dispute arising under or in connection with this contract is referred to and
changes the Completion Date, the Key Dates and the forecast of the total decided by the Adjudicator.

core
core
Defined Cost of the whole of the works accordingly and accepts the revised

clauses
clauses
programme. The Adjudicator W1.2 (1) The Parties appoint the Adjudicator under the NEC Adjudicator’s Contract
current at the starting date.
Assessing the amount due 50
(2) The Adjudicator acts impartially and decides the dispute as an indepen-
50.7 Payments of Defined Cost made by the Contractor in a currency other than the
dent adjudicator and not as an arbitrator.
currency of this contract are included in the amount due as payments to be
made to him in the same currency. Such payments are converted to the (3) If the Adjudicator is not identified in the Contract Data or if the Adjudicator

main
main
currency of this contract in order to calculate the Fee using the exchange resigns or is unable to act, the Parties choose a new adjudicator jointly. If the
rates. Parties have not chosen an adjudicator, either Party may ask the Adjudicator

option clauses
option clauses
nominating body to choose one. The Adjudicator nominating body chooses an
Defined Cost 52 adjudicator within four days of the request. The chosen adjudicator becomes
52.2 The Contractor keeps these records the Adjudicator.
. accounts of payments of Defined Cost, (4) A replacement Adjudicator has the power to decide a dispute referred to
. proof that the payments have been made, his predecessor but not decided at the time when the predecessor resigned or
. communications about and assessments of compensation events for became unable to act. He deals with an undecided dispute as if it had been

secondary
secondary
Subcontractors and referred to him on the date he was appointed.

option clauses
option clauses
. other records as stated in the Works Information.
(5) The Adjudicator, his employees and agents are not liable to the Parties
52.3 The Contractor allows the Project Manager to inspect at any time within for any action or failure to take action in an adjudication unless the action or
working hours the accounts and records which he is required to keep. failure to take action was in bad faith.

Assessing compensation 63

cost
cost
The adjudication W1.3 (1) Disputes are notified and referred to the Adjudicator in accordance with
events 63.14 If the Project Manager and the Contractor agree, rates and lump sums may be the Adjudication Table.

components
components
used to assess a compensation event.

Implementing 65
compensation events 65.3 The changes to the forecast amount of the Prices, the Completion Date and
the Key Dates are included in the notification implementing a compensation
event.

data
data

contract
contract

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Dispute Resolution Engineering and Construction Contract

ADJUDICATION TABLE (5) The Adjudicator may

. review and revise any action or inaction of the Project Manager or
Dispute about Which Party may When may it be referred to the
Supervisor related to the dispute and alter a quotation which has been
refer it to the Adjudicator?
treated as having been accepted,
Adjudicator? . take the initiative in ascertaining the facts and the law related to the
dispute,
An action of the The Contractor Between two and four weeks . instruct a Party to provide further information related to the dispute
Project Manager or after the Contractor’s within a stated time and
the Supervisor notification of the dispute to the . instruct a Party to take any other action which he considers necessary to
Employer and the Project reach his decision and to do so within a stated time.
Manager, the notification itself
being made not more than four (6) A communication between a Party and the Adjudicator is communicated to
weeks after the Contractor the other Party at the same time.
becomes aware of the action (7) If the Adjudicator’s decision includes assessment of additional cost or
delay caused to the Contractor, he makes his assessment in the same way as
The Project Manager The Contractor Between two and four weeks a compensation event is assessed.
or Supervisor not after the Contractor’s

core
core
having taken an notification of the dispute to the (8) The Adjudicator decides the dispute and notifies the Parties and the

clauses
clauses
action Employer and the Project Project Manager of his decision and his reasons within four weeks of the end
Manager, the notification itself of the period for receiving information. This four week period may be extended
being made not more than four if the Parties agree.
weeks after the Contractor (9) Unless and until the Adjudicator has notified the Parties of his decision,
becomes aware that the action the Parties, the Project Manager and the Supervisor proceed as if the matter
was not taken disputed was not disputed.

main
main
A quotation for a The Employer Between two and four weeks (10) The Adjudicator’s decision is binding on the Parties unless and until

option clauses
option clauses
compensation event after the Project Manager’s revised by the tribunal and is enforceable as a matter of contractual obligation
which is treated as notification of the dispute to the between the Parties and not as an arbitral award. The Adjudicator’s decision
having been Employer and the Contractor, is final and binding if neither Party has notified the other within the times
accepted the notification itself being required by this contract that he is dissatisfied with a decision of the Adjudica-
made not more than four weeks tor and intends to refer the matter to the tribunal.
after the quotation was treated (11) The Adjudicator may, within two weeks of giving his decision to the

secondary
secondary
as accepted Parties, correct any clerical mistake or ambiguity.

option clauses
option clauses
Any other matter Either Party Between two and four weeks Review by the tribunal W1.4 (1) A Party does not refer any dispute under or in connection with this
after notification of the dispute contract to the tribunal unless it has first been referred to the Adjudicator in
to the other Party and the accordance with this contract.
Project Manager

cost
cost
(2) If, after the Adjudicator notifies his decision a Party is dissatisfied, he may
notify the other Party that he intends to refer it to the tribunal. A Party may not

components
components
(2) The times for notifying and referring a dispute may be extended by the refer a dispute to the tribunal unless this notification is given within four
Project Manager if the Contractor and the Project Manager agree to the exten- weeks of notification of the Adjudicator’s decision.
sion before the notice or referral is due. The Project Manager notifies the
extension that has been agreed to the Contractor. If a disputed matter is not (3) If the Adjudicator does not notify his decision within the time provided by
notified and referred within the times set out in this contract, neither Party may this contract, a Party may notify the other Party that he intends to refer the
subsequently refer it to the Adjudicator or the tribunal. dispute to the tribunal. A Party may not refer a dispute to the tribunal unless

data
data

this notification is given within four weeks of the date by which the Adjudicator

contract
contract

(3) The Party referring the dispute to the Adjudicator includes with his referral should have notified his decision.
information to be considered by the Adjudicator. Any more information from a
Party to be considered by the Adjudicator is provided within four weeks of the (4) The tribunal settles the dispute referred to it. The tribunal has the powers
referral. This period may be extended if the Adjudicator and the Parties agree. to reconsider any decision of the Adjudicator and review and revise any action
or inaction of the Project Manager or the Supervisor related to the dispute. A
(4) If a matter disputed by the Contractor under or in connection with a Party is not limited in the tribunal proceedings to the information, evidence or
subcontract is also a matter disputed under or in connection with this contract arguments put to the Adjudicator.
and if the subcontract allows, the Contractor may refer the subcontract dis-
pute to the Adjudicator at the same time as the main contract referral. The (5) If the tribunal is arbitration, the arbitration procedure, the place where the
Adjudicator then decides the disputes together and references to the Parties arbitration is to be held and the method of choosing the arbitrator are those
for the purposes of the dispute are interpreted as including the Subcontractor. stated in the Contract Data.
(6) A Party does not call the Adjudicator as a witness in tribunal proceedings.

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Dispute Resolution Engineering and Construction Contract

Option W2 (3) If a matter disputed by the Contractor under or in connection with a

subcontract is also a matter disputed under or in connection with this
contract, the Contractor may, with the consent of the Subcontractor, refer the
subcontract dispute to the Adjudicator at the same time as the main contract
referral. The Adjudicator then decides the disputes together and references to
Dispute resolution procedure (used in the United Kingdom when the Housing Grants, Construction and Regeneration the Parties for the purposes of the dispute are interpreted as including the
Act 1996 applies). Subcontractor.
(4) The Adjudicator may
Dispute resolution W2
W2.1 (1) A dispute arising under or in connection with this contract is referred to . review and revise any action or inaction of the Project Manager or
and decided by the Adjudicator. A Party may refer a dispute to the Adjudicator Supervisor related to the dispute and alter a quotation which has been
at any time. treated as having been accepted,
. take the initiative in ascertaining the facts and the law related to the
(2) In this Option, time periods stated in days exclude Christmas Day, Good dispute,
Friday and bank holidays. . instruct a Party to provide further information related to the dispute
within a stated time and
The Adjudicator W2.2 (1) The Parties appoint the Adjudicator under the NEC Adjudicator’s Contract . instruct a Party to take any other action which he considers necessary to
current at the starting date.

core
core
reach his decision and to do so within a stated time.

clauses
clauses
(2) The Adjudicator acts impartially and decides the dispute as an indepen- (5) If a Party does not comply with any instruction within the time stated by
dent adjudicator and not as an arbitrator. the Adjudicator, the Adjudicator may continue the adjudication and make his
(3) If the Adjudicator is not identified in the Contract Data or if the Adjudicator decision based upon the information and evidence he has received.
resigns or becomes unable to act (6) A communication between a Party and the Adjudicator is communicated to
. the Parties may choose an adjudicator jointly or the other Party at the same time.

main
main
. a Party may ask the Adjudicator nominating body to choose an adjudicator. (7) If the Adjudicator’s decision includes assessment of additional cost or
The Adjudicator nominating body chooses an adjudicator within four days of delay caused to the Contractor, he makes his assessment in the same way as

option clauses
option clauses
the request. The chosen adjudicator becomes the Adjudicator. a compensation event is assessed. If the Adjudicator’s decision changes an
amount notified as due, payment of the sum decided by the Adjudicator is due
(4) A replacement Adjudicator has the power to decide a dispute referred to not later than seven days from the date of the decision or the final date for
his predecessor but not decided at the time when his predecessor resigned or payment of the notified amount, whichever is the later.
became unable to act. He deals with an undecided dispute as if it had been
referred to him on the date he was appointed. (8) The Adjudicator decides the dispute and notifies the Parties and the
Project Manager of his decision and his reasons within twenty-eight days of

secondary
secondary
(5) The Adjudicator, his employees and agents are not liable to the Parties for

option clauses
option clauses
the dispute being referred to him. This period may be extended by up to four-
any action or failure to take action in an adjudication unless the action or teen days with the consent of the referring Party or by any other period agreed
failure to take action was in bad faith. by the Parties. The Adjudicator may in his decision allocate his fees and
expenses between the Parties.
The adjudication W2.3 (1) Before a Party refers a dispute to the Adjudicator, he gives a notice of
adjudication to the other Party with a brief description of the dispute and the (9) Unless and until the Adjudicator has notified the Parties of his decision,

cost
cost
decision which he wishes the Adjudicator to make. If the Adjudicator is named the Parties, the Project Manager and the Supervisor proceed as if the matter
disputed was not disputed.

components
components
in the Contract Data, the Party sends a copy of the notice of adjudication to
the Adjudicator when it is issued. Within three days of the receipt of the notice (10) If the Adjudicator does not make his decision and notify it to the Parties
of adjudication, the Adjudicator notifies the Parties within the time provided by this contract, the Parties and the Adjudicator may
. that he is able to decide the dispute in accordance with the contract or agree to extend the period for making his decision. If they do not agree to an
. that he is unable to decide the dispute and has resigned. extension, either Party may act as if the Adjudicator has resigned.

data
data

If the Adjudicator does not so notify within three days of the issue of the (11) The Adjudicator’s decision is binding on the Parties unless and until

contract
contract

notice of adjudication, either Party may act as if he has resigned. revised by the tribunal and is enforceable as a matter of contractual obligation
between the Parties and not as an arbitral award. The Adjudicator’s decision
(2) Within seven days of a Party giving a notice of adjudication he is final and binding if neither Party has notified the other within the times
. refers the dispute to the Adjudicator, required by this contract that he is dissatisfied with a matter decided by the
. provides the Adjudicator with the information on which he relies, including Adjudicator and intends to refer the matter to the tribunal.
any supporting documents and (12) The Adjudicator may, within five days of giving his decision to the Parties,
. provides a copy of the information and supporting documents he has pro-
correct the decision to remove a clerical or typographical error arising by acci-
vided to the Adjudicator to the other Party. dent or omission.
Any further information from a Party to be considered by the Adjudicator is
provided within fourteen days of the referral. This period may be extended if Review by the tribunal W2.4 (1) A Party does not refer any dispute under or in connection with this
the Adjudicator and the Parties agree. contract to the tribunal unless it has first been decided by the Adjudicator in
accordance with this contract.
(2) If, after the Adjudicator notifies his decision a Party is dissatisfied, that
Party may notify the other Party of the matter which he disputes and state

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Dispute Resolution

that he intends to refer it to the tribunal. The dispute may not be referred to SECONDARY OPTION CLAUSES
the tribunal unless this notification is given within four weeks of the notifica-
tion of the Adjudicator’s decision.
(3) The tribunal settles the dispute referred to it. The tribunal has the powers
to reconsider any decision of the Adjudicator and to review and revise any
action or inaction of the Project Manager or the Supervisor related to the Option X1: Price adjustment for inflation (used only with Options A, B, C and D)
dispute. A Party is not limited in tribunal proceedings to the information or
evidence put to the Adjudicator.
(4) If the tribunal is arbitration, the arbitration procedure, the place where the
arbitration is to be held and the method of choosing the arbitrator are those
stated in the Contract Data. Defined terms X1
X1.1 (a) The Base Date Index (B) is the latest available index before the base date.
(5) A Party does not call the Adjudicator as a witness in tribunal proceedings.
(b) The Latest Index (L) is the latest available index before the date of
assessment of an amount due.
(c) The Price Adjustment Factor is the total of the products of each of the

core
core
proportions stated in the Contract Data multiplied by (L – B)/B for the index

clauses
clauses
linked to it.

Price Adjustment Factor X1.2 If an index is changed after it has been used in calculating a Price Adjustment
Factor, the calculation is repeated and a correction included in the next
assessment of the amount due.
The Price Adjustment Factor calculated at the Completion Date for the whole

main

main
of the works is used for calculating price adjustment after this date.

option clauses
option clauses
Compensation events X1.3 The Defined Cost for compensation events is assessed using the
. Defined Cost current at the time of assessing the compensation event
adjusted to base date by dividing by one plus the Price Adjustment
Factor for the last assessment of the amount due and
. Defined Cost at base date levels for amounts calculated from rates
stated in the Contract Data for employees and Equipment.

secondary

secondary
option clauses

option clauses
Price adjustment Options X1.4 Each amount due includes an amount for price adjustment which is the sum
A and B of
. the change in the Price for Work Done to Date since the last assessment
of the amount due multiplied by the Price Adjustment Factor for the date

cost
cost
of the current assessment,

components
components
. the amount for price adjustment included in the previous amount due
and
. correcting amounts, not included elsewhere, which arise from changes to
indices used for assessing previous amounts for price adjustment.

Price adjustment Options X1.5 Each time the amount due is assessed, an amount for price adjustment is

data
data

C and D added to the total of the Prices which is the sum of

contract
contract

. the change in the Price for Work Done to Date since the last assessment
of the amount due multiplied by (PAF/(1 þ PAF)) where PAF is the Price
Adjustment Factor for the date of the current assessment and
. correcting amounts, not included elsewhere, which arise from changes to
indices used for assessing previous amounts for price adjustment.

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Secondary Option Clauses Engineering and Construction Contract

Option X2: Changes in the law Option X6: Bonus for early Completion

Changes in the law X2 Bonus for early Completion X6

X2.1 A change in the law of the country in which the Site is located is a compensa- X6.1 The Contractor is paid a bonus calculated at the rate stated in the Contract
tion event if it occurs after the Contract Date. The Project Manager may notify Data for each day from the earlier of
the Contractor of a compensation event for a change in the law and instruct . Completion and
him to submit quotations. If the effect of a compensation event which is a . the date on which the Employer takes over the works
change in the law is to reduce the total Defined Cost, the Prices are reduced.
until the Completion Date.

Option X3: Multiple currencies (used only with Options A and B)

Option X7: Delay damages

core
core

clauses
clauses
Multiple currencies X3
X3.1 The Contractor is paid in currencies other than the currency of this contract for Delay damages X7
the items or activities listed in the Contract Data. The exchange rates are X7.1 The Contractor pays delay damages at the rate stated in the Contract Data
used to convert from the currency of this contract to other currencies. from the Completion Date for each day until the earlier of
X3.2 Payments to the Contractor in currencies other than the currency of this . Completion and
contract do not exceed the maximum amounts stated in the Contract Data. . the date on which the Employer takes over the works.

main
main
Any excess is paid in the currency of this contract.
X7.2 If the Completion Date is changed to a later date after delay damages have
been paid, the Employer repays the overpayment of damages with interest.

option clauses
option clauses
Interest is assessed from the date of payment to the date of repayment and
the date of repayment is an assessment date.
X7.3 If the Employer takes over a part of the works before Completion, the delay
Option X4: Parent company guarantee damages are reduced from the date on which the part is taken over. The
Project Manager assesses the benefit to the Employer of taking over the part
of the works as a proportion of the benefit to the Employer of taking over the

secondary
secondary

option clauses
option clauses
Parent company X4 whole of the works not previously taken over. The delay damages are reduced
guarantee X4.1 If a parent company owns the Contractor, the Contractor gives to the Employer in this proportion.
a guarantee by the parent company of the Contractor’s performance in the
form set out in the Works Information. If the guarantee was not given by the
Contract Date, it is given to the Employer within four weeks of the Contract
Date.

cost
cost

components
components
Option X12: Partnering

Identified and defined X12

Option X5: Sectional Completion terms X12.1 (1) The Partners are those named in the Schedule of Partners. The Client is a
Partner.

data
data

contract
contract

Sectional Completion X5 (2) An Own Contract is a contract between two Partners which includes this
X5.1 In these conditions of contract, unless stated as the whole of the works, each Option.
reference and clause relevant to (3) The Core Group comprises the Partners listed in the Schedule of Core
. the works, Group Members.
. Completion and (4) Partnering Information is information which specifies how the Partners
. Completion Date work together and is either in the documents which the Contract Data states
applies, as the case may be, to either the whole of the works or any section of it is in or in an instruction given in accordance with this contract.
the works. (5) A Key Performance Indicator is an aspect of performance for which a
target is stated in the Schedule of Partners.

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Secondary Option Clauses Engineering and Construction Contract

Actions X12.2 (1) Each Partner works with the other Partners to achieve the Client’s objective Option X13: Performance bond
stated in the Contract Data and the objectives of every other Partner stated in
the Schedule of Partners.
(2) Each Partner nominates a representative to act for it in dealings with Performance bond X13
other Partners. X13.1 The Contractor gives the Employer a performance bond, provided by a bank or
(3) The Core Group acts and takes decisions on behalf of the Partners on insurer which the Project Manager has accepted, for the amount stated in the
those matters stated in the Partnering Information. Contract Data and in the form set out in the Works Information. A reason for
not accepting the bank or insurer is that its commercial position is not strong
(4) The Partners select the members of the Core Group. The Core Group enough to carry the bond. If the bond was not given by the Contract Date, it is
decides how they will work and decides the dates when each member joins given to the Employer within four weeks of the Contract Date.
and leaves the Core Group. The Client’s representative leads the Core Group
unless stated otherwise in the Partnering Information.
(5) The Core Group keeps the Schedule of Core Group Members and the
Schedule of Partners up to date and issues copies of them to the Partners
each time either is revised. Option X14: Advanced payment to the Contractor
(6) This Option does not create a legal partnership between Partners who are

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not one of the Parties in this contract.
Advanced payment X14
Working together X12.3 (1) The Partners work together as stated in the Partnering Information and in X14.1 The Employer makes an advanced payment to the Contractor of the amount
a spirit of mutual trust and co-operation. stated in the Contract Data.
(2) A Partner may ask another Partner to provide information which he needs X14.2 The advanced payment is made either within four weeks of the Contract Date
to carry out the work in his Own Contract and the other Partner provides it. or, if an advanced payment bond is required, within four weeks of the later of

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(3) Each Partner gives an early warning to the other Partners when he . the Contract Date and
becomes aware of any matter that could affect the achievement of another . the date when the Employer receives the advanced payment bond.

option clauses
option clauses
Partner’s objectives stated in the Schedule of Partners.
The advanced payment bond is issued by a bank or insurer which the Project
(4) The Partners use common information systems as set out in the Partner- Manager has accepted. A reason for not accepting the proposed bank or
ing Information. insurer is that its commercial position is not strong enough to carry the bond.
The bond is for the amount of the advanced payment which the Contractor
(5) A Partner implements a decision of the Core Group by issuing instructions
has not repaid and is in the form set out in the Works Information. Delay in
in accordance with its Own Contracts.
making the advanced payment is a compensation event.

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option clauses
option clauses
(6) The Core Group may give an instruction to the Partners to change the
X14.3 The advanced payment is repaid to the Employer by the Contractor in instal-
Partnering Information. Each such change to the Partnering Information is a
ments of the amount stated in the Contract Data. An instalment is included in
compensation event which may lead to reduced Prices.
each amount due assessed after the period stated in the Contract Data has
(7) The Core Group prepares and maintains a timetable showing the proposed passed until the advanced payment has been repaid.
timing of the contributions of the Partners. The Core Group issues a copy of

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cost
the timetable to the Partners each time it is revised. The Contractor changes
his programme if it is necessary to do so in order to comply with the revised

components
timetable. Each such change is a compensation event which may lead to components
reduced Prices.
Option X15: Limitation of the Contractor’s liability for his design to
(8) A Partner gives advice, information and opinion to the Core Group and to reasonable skill and care
other Partners when asked to do so by the Core Group. This advice, informa-
tion and opinion relates to work that another Partner is to carry out under its

data
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contract
contract

Own Contract and is given fully, openly and objectively. The Partners show
contingency and risk allowances in information about costs, prices and timing The Contractor’s design X15
for future work. X15.1 The Contractor is not liable for Defects in the works due to his design so far
as he proves that he used reasonable skill and care to ensure that his design
(9) A Partner notifies the Core Group before subcontracting any work. complied with the Works Information.
Incentives X12.4 (1) A Partner is paid the amount stated in the Schedule of Partners if the X15.2 If the Contractor corrects a Defect for which he is not liable under this contract
target stated for a Key Performance Indicator is improved upon or achieved. it is a compensation event.
Payment of the amount is due when the target has been improved upon or
achieved and is made as part of the amount due in the Partner’s Own
Contract.
(2) The Client may add a Key Performance Indicator and associated payment
to the Schedule of Partners but may not delete or reduce a payment stated in
the Schedule of Partners.

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Secondary Option Clauses Engineering and Construction Contract

Option X16: Retention (not used with Option F) Option X20: Key Performance Indicators (not used with Option X12)

Retention X16 Incentives X20.1 A Key Performance Indicator is an aspect of performance by the Contractor for
X16.1 After the Price for Work Done to Date has reached the retention free amount, which a target is stated in the Incentive Schedule. The Incentive Schedule is
an amount is retained in each amount due. Until the earlier of the incentive schedule unless later changed in accordance with this contract.
. Completion of the whole of the works and X20.2 From the starting date until the Defects Certificate has been issued, the
. the date on which the Employer takes over the whole of the works Contractor reports to the Project Manager his performance against each of the
the amount retained is the retention percentage applied to the excess of the Key Performance Indicators. Reports are provided at the intervals stated in
the Contract Data and include the forecast final measurement against each
Price for Work Done to Date above the retention free amount.
indicator.
X16.2 The amount retained is halved
X20.3 If the Contractor’s forecast final measurement against a Key Performance
. in the assessment made at Completion of the whole of the works or Indicator will not achieve the target stated in the Incentive Schedule, he
. in the next assessment after the Employer has taken over the whole of submits to the Project Manager his proposals for improving performance.
the works if this is before Completion of the whole of the works.
X20.4 The Contractor is paid the amount stated in the Incentive Schedule if the

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The amount retained remains at this amount until the Defects Certificate is target stated for a Key Performance Indicator is improved upon or achieved.

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issued. No amount is retained in the assessments made after the Defects Payment of the amount is due when the target has been improved upon or
Certificate has been issued. achieved.
X20.5 The Employer may add a Key Performance Indicator and associated payment
to the Incentive Schedule but may not delete or reduce a payment stated in
the Incentive Schedule.
Option X17: Low performance damages

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option clauses
Low performance X17
damages X17.1 If a Defect included in the Defects Certificate shows low performance with
respect to a performance level stated in the Contract Data, the Contractor
pays the amount of low performance damages stated in the Contract Data.

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secondary

option clauses
option clauses
Option X18: Limitation of liability

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cost
Limitation of liability X18
X18.1 The Contractor’s liability to the Employer for the Employer’s indirect or conse-

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components
quential loss is limited to the amount stated in the Contract Data.
X18.2 For any one event, the liability of the Contractor to the Employer for loss of or
damage to the Employer’s property is limited to the amount stated in the
Contract Data.
X18.3 The Contractor’s liability to the Employer for Defects due to his design which

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contract

are not listed on the Defects Certificate is limited to the amount stated in the
Contract Data.
X18.4 The Contractor’s total liability to the Employer for all matters arising under or
in connection with this contract, other than the excluded matters, is limited to
the amount stated in the Contract Data and applies in contract, tort or delict
and otherwise to the extent allowed under the law of the contract.
The excluded matters are amounts payable by the Contractor as stated in this
contract for
. loss of or damage to the Employer’s property,
. delay damages if Option X7 applies,
. low performance damages if Option X17 applies and
. Contractor’s share if Option C or Option D applies.
X18.5 The Contractor is not liable to the Employer for a matter unless it is notified to
the Contractor before the end of liability date.

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Secondary Option Clauses Engineering and Construction Contract

. the Contractor makes payment to the Project Bank Account of any

OPTION Y
amount which the Employer has notified the Contractor he intends to
withhold from the certified amount and which is required to make pay-
ment to Named Suppliers.
Y1.9 The Contractor prepares the Authorisation, setting out the sums due to
Option Y(UK)1: Project Bank Account Named Suppliers as assessed by the Contractor and to the Contractor for the
balance of the payment due under the contract. After signing the Authorisa-
tion, the Contractor submits it to the Project Manager no later than four days
Definitions Y(UK)1 before the final date for payment. The Employer signs the Authorisation and
Y1.1 (1) The Authorisation is a document authorising the project bank to make submits it to the project bank no later than one day before the final date for
payments to the Contractor and Named Suppliers. payment.
(2) Named Suppliers are named suppliers and other Suppliers who have Y1.10 The Contractor and Named Suppliers receive payment from the Project Bank
signed the Joining Deed. Account of the sums set out in the Authorisation as soon as practicable after
the Project Bank Account receives payment.
(3) Project Bank Account is the account used to receive payments from the
Employer and the Contractor and make payments to the Contractor and Y1.11 A payment which is due from the Contractor to the Employer is not made
Named Suppliers. through the Project Bank Account.

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(4) A Supplier is a person or organisation who has a contract to Effect of payment Y1.12 Payments made from the Project Bank Account are treated as payments from
. construct or install part of the works, the Employer to the Contractor in accordance with this contract or from the
. provide a service necessary to Provide the Works or Contractor or Subcontractor to Named Suppliers in accordance with their con-
. supply Plant and Materials for the works. tracts as applicable. A delay in payment due to a failure of the Contractor to
comply with the requirements of this clause is not treated as late payment
(5) Trust Deed is an agreement in the form set out in the contract which con-
under this contract.

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tains provisions for administering the Project Bank Account.
(6) Joining Deed is an agreement in the form set out in the contract under Trust Deed Y1.13 The Employer, the Contractor and named suppliers sign the Trust Deed before

option clauses
option clauses
which the Supplier joins the Trust Deed. the first assessment date.

Project Bank Account Y1.2 The Contractor establishes the Project Bank Account with the project bank Termination Y1.14 If the Project Manager issues a termination certificate, no further payment is
within three weeks of the Contract Date. made into the Project Bank Account.
Y1.3 Unless stated otherwise in the Contract Data, the Contractor pays any charges
made and is paid any interest paid by the project bank. The charges and inter-

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secondary
est by the project bank are not included in Defined Cost.

option clauses
option clauses
Y1.4 The Contractor submits to the Project Manager for acceptance details of the
banking arrangements for the Project Bank Account. A reason for not accept-
ing the banking arrangements is that they do not provide for payments to be
made in accordance with this contract. The Contractor provides to the Project

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cost
Manager copies of communications with the project bank in connection with
the Project Bank Account.

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components
Named Suppliers Y1.5 The Contractor includes in his contracts with Named Suppliers the arrange-
ments in this contract for the operation of the Project Bank Account and Trust
Deed. The Contractor notifies the Named Suppliers of the details of the Project
Bank Account and the arrangements for payment of amounts due under their

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contracts.

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contract

Y1.6 The Contractor submits proposals for adding a Supplier to the Named
Suppliers to the Project Manager for acceptance. A reason for not accepting is
that the addition of the Supplier does not comply with the Works Information.
The Employer, the Contractor and the Supplier sign the Joining Deed after
acceptance.

Payments Y1.7 On or before each assessment date, the Contractor submits to the Project
Manager an application for payment, and shows in the application the
amounts due to Named Suppliers in accordance with their contracts.
Y1.8 Within the time set out in the banking arrangements to allow the project bank
to make payment to the Contractor and Named Suppliers in accordance with
the contract,
. the Employer makes payment to the Project Bank Account of the amount
which is due to be paid under the contract and

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Secondary Option Clauses Engineering and Construction Contract

Trust Deed Joining Deed

This agreement is made between the Employer, the Contractor and the Named This agreement is made between the Employer, the Contractor and . . . . . . . . . . . . . . (the
Suppliers. Additional Supplier).
Terms in this deed have the meanings given to them in the contract between Terms in this deed have the meanings given to them in the contract between
. . . . . . . . . . . . . . . . . . . . . and . . . . . . . . . . . . . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . (the works). . . . . . . . . . . . . . . . . . . . . . and . . . . . . . . . . . . . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . (the works).

Background Background
The Employer and the Contractor have entered into a contract for the works. The Employer and the Contractor have entered into a contract for the works.
The Named Suppliers have entered into contracts with the Contractor or a Subcontrac- The Named Suppliers have entered into contracts with the Contractor or a Subcontrac-
tor in connection with the works. tor in connection with the works.
The Contractor has established a Project Bank Account to make provision for payment The Contractor has established a Project Bank Account to make provision for payment
to the Contractor and the Named Suppliers. to the Contractor and the Named Suppliers.
The Employer, the Contractor and the Named Suppliers have entered into a deed as
Agreement
set out in Annex 1 (the Trust Deed), and have agreed that the Additional Supplier may

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core
The parties to this deed agree that join that deed.

clauses
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. sums due to the Contractor and Named Suppliers and set out in the Authorisation
Agreement
are held in trust in the Project Bank Account by the Contractor for distribution to
the Contractor and Named Suppliers in accordance with the banking arrangements The Parties to this deed agree that
applicable to the Project Bank Account, .
. further Named Suppliers may be added as parties to this deed with the agreement the Additional Supplier becomes a party to the Trust Deed from the date set out
below,
of the Employer and Contractor. The agreement of the Employer and Contractor is

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. this deed is subject to the law of the contract for the works,
treated as agreement by the Named Suppliers who are parties to this deed, .
. this deed is subject to the law of the contract for the works,
the benefits under this deed may not be assigned.

option clauses
option clauses
. the benefits under this deed may not be assigned.
Executed as a deed on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Executed as a deed on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . by
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Employer)
by
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Contractor)

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option clauses
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Employer)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Additional Supplier)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Contractor)

............................................

cost
cost
............................................

components
............................................ components

............................................
(Named Suppliers)

data
data

contract
contract

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Secondary Option Clauses

Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996 SCHEDULE OF COST COMPONENTS

Definitions Y(UK)2
Y2.1 (1) The Act is the Housing Grants, Construction and Regeneration Act 1996
This schedule is part of the conditions of contract only when Option C, D or E
as amended by the Local Democracy, Economic Development and Construc-
is used. In this schedule the Contractor means the Contractor and not his
tion Act 2009.
Subcontractors. An amount is included only in one cost component and only if
(2) A period of time stated in days is a period calculated in accordance with it is incurred in order to Provide the Works.
Section 116 of the Act.
People 1 The following components of the cost of
Dates for payment Y2.2 The date on which a payment becomes due is seven days after the assess- . people who are directly employed by the Contractor and whose normal
ment date.
place of working is within the Working Areas and
The final date for payment is fourteen days or a different period for payment if . people who are directly employed by the Contractor and whose normal
stated in the Contract Data after the date on which payment becomes due. place of working is not within the Working Areas but who are working in
the Working Areas.
The Project Manager’s certificate is the notice of payment to the Contractor

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specifying the amount due at the payment due date (the notified sum) and 11 Wages, salaries and amounts paid by the Contractor for people paid according

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stating the basis on which the amount was calculated. to the time worked while they are within the Working Areas.
12 Payments to people for
Notice of intention Y2.3 If either Party intends to pay less than the notified sum, he notifies the other
to pay less Party not later than seven days (the prescribed period) before the final date (a) bonuses and incentives
for payment by stating the amount considered to be due and the basis on (b) overtime
which that sum is calculated. A Party does not withhold payment of an (c) working in special circumstances

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amount due under this contract unless he has notified his intention to pay (d) special allowances
less than the notified sum as required by this contract. (e) absence due to sickness and holidays

option clauses
option clauses
(f) severance related to work on this contract.
Suspension of Y2.4 If the Contractor exercises his right under the Act to suspend performance, it 13 Payments made in relation to people for
performance is a compensation event.
(a) travel
(b) subsistence and lodging
(c) relocation

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(d) medical examinations

option clauses
option clauses
(e) passports and visas
Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999 (f) travel insurance
(g) items (a) to (f) for dependants
(h) protective clothing
Third party rights Y(UK)3 (i) meeting the requirements of the law

cost

cost
Y3.1 A person or organisation who is not one of the Parties may enforce a term of (j) pensions and life assurance
this contract under the Contracts (Rights of Third Parties) Act 1999 only if (k) death benefit

components
components
the term and the person or organisation are stated in the Contract Data. (l) occupational accident benefits
(m) medical aid
(n) a vehicle
(o) safety training.
14 The following components of the cost of people who are not directly employed

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Option Z: Additional conditions of contract by the Contractor but are paid for by him according to the time worked while

contract
contract

they are within the Working Areas.

Additional conditions of Z1 Amounts paid by the Contractor.

contract Z1.1 The additional conditions of contract stated in the Contract Data are part of
this contract. Equipment 2 The following components of the cost of Equipment which is used within the
Working Areas (including the cost of accommodation but excluding Equipment
cost covered by the percentage for Working Areas overheads).
21 Payments for the hire or rent of Equipment not owned by
. the Contractor,
. his parent company or
. by a company with the same parent company
at the hire or rental rate multiplied by the time for which the Equipment is
required.

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Schedule of Cost Components Engineering and Construction Contract

22 Payments for Equipment which is not listed in the Contract Data but is 42 Payments to public authorities and other properly constituted authorities of
. charges which they are authorised to make in respect of the works.
owned by the Contractor,
. purchased by the Contractor under a hire purchase or lease agreement 43 Payments for
or
. hired by the Contractor from the Contractor’s parent company or from a (a) cancellation charges arising from a compensation event
(b) buying or leasing land
company with the same parent company
(c) compensation for loss of crops or buildings
at open market rates, multiplied by the time for which the Equipment is (d) royalties
required. (e) inspection certificates
(f) charges for access to the Working Areas
23 Payments for Equipment purchased for work included in this contract listed
(g) facilities for visits to the Working Areas by Others
with a time-related on cost charge, in the Contract Data, of
(h) specialist services
. the change in value over the period for which the Equipment is required (i) consumables and equipment provided by the Contractor for the Project
and Manager’s and Supervisor’s offices.
. the time-related on cost charge stated in the Contract Data for the
44 A charge for overhead costs incurred within the Working Areas calculated by
period for which the Equipment is required.
applying the percentage for Working Areas overheads stated in the Contract
The change in value is the difference between the purchase price and either Data to the total of people items 11, 12, 13 and 14. The charge includes

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clauses
the sale price or the open market sale price at the end of the period for which provision and use of equipment, supplies and services, but excludes accom-
the Equipment is required. Interim payments of the change in value are made modation, for
at each assessment date. A final payment is made in the next assessment
(a) catering
after the change in value has been determined.
(b) medical facilities and first aid
If the Project Manager agrees, an additional item of Equipment may be (c) recreation
assessed as if it had been listed in the Contract Data. (d) sanitation

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(e) security
24 Payments for special Equipment listed in the Contract Data. These amounts
(f) copying
are the rates stated in the Contract Data multiplied by the time for which the

option clauses
option clauses
(g) telephone, telex, fax, radio and CCTV
Equipment is required.
(h) surveying and setting out
If the Project Manager agrees, an additional item of special Equipment may (i) computing
be assessed as if it had been listed in the Contract Data. (j) hand tools not powered by compressed air.
25 Payments for the purchase price of Equipment which is consumed.
Manufacture and 5 The following components of the cost of manufacture and fabrication of Plant
26 Unless included in the hire or rental rates, payments for fabrication and Materials which are

secondary
secondary

option clauses
option clauses
. transporting Equipment to and from the Working Areas other than for . wholly or partly designed specifically for the works and
repair and maintenance, . manufactured or fabricated outside the Working Areas.
. erecting and dismantling Equipment and
. constructing, fabricating or modifying Equipment as a result of a
51 The total of the hours worked by employees multiplied by the hourly rates
stated in the Contract Data for the categories of employees listed.
compensation event.

cost
cost
52 An amount for overheads calculated by multiplying this total by the percen-
27 Payments for purchase of materials used to construct or fabricate Equipment.
tage for manufacturing and fabrication overheads stated in the Contract

components
28 Unless included in the hire rates, the cost of operatives is included in the cost components Data.
of people.
Design 6 The following components of the cost of design of the works and Equipment
Plant and Materials 3 The following components of the cost of Plant and Materials. done outside the Working Areas.
31 Payments for 61 The total of the hours worked by employees multiplied by the hourly rates

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contract

.
stated in the Contract Data for the categories of employees listed.
purchasing Plant and Materials,
. delivery to and removal from the Working Areas, 62 An amount for overheads calculated by multiplying this total by the percen-
. providing and removing packaging and tage for design overheads stated in the Contract Data.
. samples and tests.
63 The cost of travel to and from the Working Areas for the categories of design
32 Cost is credited with payments received for disposal of Plant and Materials employees listed in the Contract Data.
unless the cost is disallowed.
Insurance 7 The following are deducted from cost
Charges 4 The following components of the cost of charges paid by the Contractor. . the cost of events for which this contract requires the Contractor to
41 Payments for provision and use in the Working Areas of insure and
. other costs paid to the Contractor by insurers.
. water,
. gas and
. electricity.

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Engineering and Construction Contract

SHORTER SCHEDULE OF COST COMPONENTS Plant and Materials 3 The following components of the cost of Plant and Materials.
31 Payments for
. purchasing Plant and Materials,
. delivery to and removal from the Working Areas,
This schedule is part of the conditions of contract only when Option A, B, C, D . providing and removing packaging and
or E is used. When Option C, D or E is used, this schedule is used by agree- . samples and tests.
ment for assessing compensation events. When Option C, D or E is used, in 32 Cost is credited with payments received for disposal of Plant and Materials
this schedule the Contractor means the Contractor and not his Subcontrac- unless the cost is disallowed.
tors. An amount is included only in one cost component and only if it is
incurred in order to Provide the Works. Charges 4 The following components of the cost of charges paid by the Contractor.
People 1 The following components of the cost of 41 A charge calculated by applying the percentage for people overheads stated
in the Contract Data to people item 11 to cover the costs of
. people who are directly employed by the Contractor and whose normal
place of working is within the Working Areas, . payments for the provision and use in the Working Areas of water, gas
. people who are directly employed by the Contractor and whose normal and electricity,
place of working is not within the Working Areas but who are working in . payments for buying or leasing land, compensation for loss of crops or

core
core

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the Working Areas and buildings, royalties, inspection certificates, charges for access to the
. people who are not directly employed by the Contractor but are paid for Working Areas, facilities for visits to the Working Areas by Others and
by him according to the time worked while they are within the Working . payments for the provision and use of equipment,supplies and services
Areas. (excluding accommodation) for catering, medical facilities and first aid,
recreation, sanitation, security, copying, telephones, telex, fax, radio,
11 Amounts paid by the Contractor including those for meeting the requirements CCTV, surveying, setting out, computing and hand tools not powered by
of the law and for pension provision. compressed air.

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Equipment 2 The following components of the cost of Equipment which is used within the 42 Payments for cancellation charges arising from a compensation event.

option clauses
option clauses
Working Areas (including the cost of accommodation but excluding Equipment 43 Payments to public authorities and other properly constituted authorities of
cost covered by the percentage for people overheads). charges which they are authorised to make in respect of the works.
21 Amounts for Equipment which is in the published list stated in the Contract 44 Consumables and equipment provided by the Contractor for the Project Man-
Data. These amounts are calculated by applying the percentage adjustment ager’s and Supervisor’s office.
for listed Equipment stated in the Contract Data to the rates in the published
list and by multiplying the resulting rate by the time for which the Equipment 45 Specialist services.

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secondary
is required.

option clauses
option clauses
Manufacture and 5 The following components of the cost of manufacture and fabrication of Plant
22 Amounts for Equipment listed in the Contract Data which is not in the fabrication and Materials, which are
published list stated in the Contract Data. These amounts are the rates
stated in the Contract Data multiplied by the time for which the Equipment is . wholly or partly designed specifically for the works and
required. . manufactured or fabricated outside the Working Areas.

cost
cost
23 The time required is expressed in hours, days, weeks or months consistently 51 Amounts paid by the Contractor.

components
components
with the list of items of Equipment in the Contract Data or with the published
list stated in the Contract Data. Design 6 The following components of the cost of design of the works and Equipment
done outside the Working Areas.
24 Unless the item is in the published list and the rate includes the cost compo-
nent, payments for 61 The total of the hours worked by employees multiplied by the hourly rates
stated in the Contract Data for the categories of employees listed.
. transporting Equipment to and from the Working Areas other than for

data
data

repair and maintenance, 62 An amount for overheads calculated by multiplying this total by the percen-

contract
contract

. erecting and dismantling Equipment and tage for design overheads stated in the Contract Data.
. constructing, fabricating or modifying Equipment as a result of a
63 The cost of travel to and from the Working Areas for the categories of design
compensation event. employees listed in the Contract Data.
25 Unless the item is in the published list and the rate includes the cost compo-
nent, the purchase price of Equipment which is consumed. Insurance 7 The following are deducted from cost
26 Unless included in the rate in the published list, the cost of operatives is . costs against which this contract required the Contractor to insure and
included in the cost of people. . other costs paid to the Contractor by insurers.
27 Amounts for Equipment which is neither in the published list stated in the
Contract Data nor listed in the Contract Data, at competitively tendered or
open market rates, multiplied by the time for which the Equipment is required.

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®

Engineering and Construction Contract

. The boundaries of the site are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CONTRACT DATA
. The language of this contract is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The law of the contract is the law of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The period for reply is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . weeks.
Part one – Data provided by the Employer . The Adjudicator nominating body is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The tribunal is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..............................................................
Completion of the data in full, according to the Options chosen, is essential to . The following matters will be included in the Risk Register
create a complete contract.
..............................................................
Statements given in all ..............................................................
contracts
..............................................................
1 General . The conditions of contract are the core clauses and the clauses for main

core
core
Option . . . . , dispute resolution Option . . . and secondary Options . . . of the 3 Time . The starting date is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

clauses
clauses
NEC3 Engineering and Construction Contract April 2013. . The access dates are
. The works are
Part of the Site Date
..............................................................
1 ......................... ...........................
. The Employer is
2 ......................... ...........................
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

main
main
3 ......................... ...........................
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

option clauses
option clauses
. The Contractor submits revised programmes at intervals no longer than
..............................................................
. The Project Manager is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . weeks.

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Testing and Defects . The defects date is . . . . . weeks after Completion of the whole of the works.
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The defect correction period is . . . . . . . . . . . . . . . . . . . . . . weeks except that

secondary
secondary
.............................................................. .

option clauses
option clauses
The defect correction period for . . . . . . . . . . . . . is . . . . . . . . . . . . weeks
. The Supervisor is . The defect correction period for . . . . . . . . . . . . is . . . . . . . . . . . . . weeks.
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Payment The currency of this contract is the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

cost
cost
The assessment interval is . . . . . . . . . . . . . . . . . weeks (not more than five).
.............................................................. . The interest rate is . . . . . % per annum (not less than 2) above the . . . . . .

components
components
. The Adjudicator is
rate of the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . bank.
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..............................................................

data
data

contract
contract

. The Works Information is in

..............................................................
..............................................................
..............................................................
. The Site Information is in
..............................................................
..............................................................
..............................................................

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® ®

Contract Data Part 1 Engineering and Construction Contract

6 Compensation events . The place where weather is to be recorded is If the Employer has decided the completion date for the whole of the works
.............................................................. . The completion date for the whole of the works is . . . . . . . . . . . . . . . . . . . . . .
. The weather measurements to be recorded for each calendar month are
If the Employer is not willing to take over the works before the Completion
. the cumulative rainfall (mm) Date
. the number of days with rainfall more than 5 mm . The Employer is not willing to take over the works before the Completion
. the number of days with minimum air temperature less than 0 degrees
Date.
Celsius
. the number of days with snow lying at . . . . . . . . . . . . . . . . . . hours GMT
. and these measurements: If no programme is identified in part two of the Contract Data
. The Contractor is to submit a first programme for acceptance within . . . . . . .
...........................................................
weeks of the Contract Date.
...........................................................
If the Employer has identified work which is to meet a stated condition by a
...........................................................
key date
. The weather measurements are supplied by . . . . . . . . . . . . . . . . . . . . . . . . . . . The key dates and conditions to be met are

core
core
. The weather data are the records of past weather measurements for each

clauses
clauses
condition to be met key date
calendar month which were recorded at . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 ......................... ...........................
and which are available from . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 ......................... ...........................
..............................................................
3 ......................... ...........................
Where no recorded data are available

main
main
If the period in which payments are made is not three weeks and Y(UK)2 is
. Assumed values for the ten year return weather data for each weather not used

option clauses
option clauses
measurement for each calendar month are . The period within which payments are made is . . . . . . . . . . . . . . . . . . . . . . . .
..............................................................
If Y(UK)2 is used and the final date for payment is not 14 days after the date
..............................................................
when payment is due
.............................................................. . The period for payment is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..............................................................

secondary
secondary

option clauses
option clauses
If there are additional Employer’s risks
8 Risks and insurance . The minimum limit of indemnity for insurance in respect of loss of or . These are additional Employer’s risks
damage to property (except the works, Plant and Materials and Equipment)
and liability for bodily injury to or death of a person (not an employee of the 1 ............................................................
Contractor) caused by activity in connection with this contract for any one
2 ............................................................
event is

cost
cost
3 ............................................................
..............................................................

components
. The minimum limit of indemnity for insurance in respect of death of or components If the Employer is to provide Plant and Materials
bodily injury to employees of the Contractor arising out of and in the course . The insurance against loss of or damage to the works, Plant and Materials
of their employment in connection with this contract for any one event is
is to include cover for Plant and Materials provided by the Employer for an
.............................................................. amount of

data
data

contract
contract

..............................................................
Optional statements If the tribunal is arbitration
. The arbitration procedure is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The place where arbitration is to be held is
..............................................................
. The person or organisation who will choose an arbitrator
. if the Parties cannot agree a choice or
. if the arbitration procedure does not state who selects an arbitrator is
..............................................................

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® ®

Contract Data Part 1 Engineering and Construction Contract

If the Employer is to provide any of the insurances stated in the Insurance If Option C or D is used
Table . The Contractor ’s share percentages and the share ranges are
. The Employer provides these insurances from the Insurance Table
share range Contractor ’s share percentage
1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
less than . . . . . . . . . . . . . . . . . % ........................... %
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
from . . . . . . . . % to . . . . . . . . % ........................... %
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
from . . . . . . . . % to . . . . . . . . % ........................... %
2. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
greater than. . . . . . . . . . . . . . . % . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option C, D, E or F is used
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The Contractor prepares forecasts of Defined Cost for the works at intervals
3. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
no longer than . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . weeks.
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The exchange rates are those published in. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

core
core
on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (date).

clauses
clauses
If additional insurances are to be provided
. If Option X1 is used
The Employer provides these additional insurances
. The proportions used to calculate the Price Adjustment Factor are
1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0. . . . . . . . . . . linked to the index for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0. . . . . . . . . . . ................................

main
main
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0. . . . . . . . . . . ................................
2. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

option clauses
option clauses
0. . . . . . . . . . . ................................
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0. . . . . . . . . . . ................................
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0. . . . . . . . . . . ................................
3. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0. . . . . . . . . . . non-adjustable
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
———————

secondary
secondary

option clauses
option clauses
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00
. The Contractor provides these additional insurances . The base date for indices is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The indices are those prepared by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option X3 is used

cost
cost
2. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Employer will pay for the items or activities listed below in the currencies

components
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . components stated
3. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . items and activities other currency total maximum payment
in the currency
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
......................... ............. ....................

data
data

If Option B or D is used

contract
contract

......................... ............. ....................

. The method of measurement is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
......................... ............. ....................
amended as follows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
......................... ............. ....................
..............................................................
. The exchange rates are those published in . . . . . . . . . . . . . . . . . . . . . . . . . . .
..............................................................
on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (date).

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® ®

Contract Data Part 1 Engineering and Construction Contract

If Option X5 is used . The Partnering Information is in

. The completion date for each section of the works is ..............................................................
section description completion date ..............................................................
1 ......................... .......................... ..............................................................
2 ......................... .......................... ..............................................................
3 ......................... ..........................
If Option X13 is used
4 ......................... .......................... . The amount of the performance bond is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Options X5 and X6 are used together
If Option X14 is used
. The bonus for each section of the works is . The amount of the advanced payment is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
section description amount per day . The Contractor repays the instalments in assessments starting not less
1 ......................... .......................... than . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . weeks after the Contract Date.

core
core
2 ......................... .......................... . The instalments are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

clauses
clauses
3 ......................... .......................... ..............................................................
4 ......................... .......................... (either an amount or a percentage of the payment otherwise due)
. An advanced payment bond is/is not required.
Remainder of the works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option X16 is used

main
main
If Options X5 and X7 are used together
. The retention free amount is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. Delay damages for each section of the works are

option clauses
option clauses
. The retention percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
section description amount per day
1 ......................... .......................... If Option X17 is used
2 ......................... .......................... . The amounts for low performance damages are
3 ......................... .......................... amount performance level

secondary
secondary
............. for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

option clauses
option clauses
4 ......................... ..........................
............. for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Remainder of the works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
............. for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option X6 is used (but not if Option X5 is also used) ............. for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

cost
cost
. The bonus for the whole of the works is . . . . . . . . . . . . . . . . . . . . . . . per day.
If Option X18 is used

components
If Option X7 is used (but not if Option X5 is also used) components . The Contractor’s liability to the Employer for indirect or consequential loss is
. Delay damages for Completion of the whole of the works are . . . . . . per day. limited to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. For any one event, the Contractor’s liability to the Employer for loss of or
If Option X12 is used damage to the Employer’s property is limited to. . . . . . . . . . . . . . . . . . . . . . .

data
data

. The Client is .

contract
contract

The Contractor’s liability for Defects due to his design which are not listed
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . on the Defects Certificate is limited to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Contractor’s total liability to the Employer for all matters arising
under or in connection with this contract, other than excluded matters,
.............................................................. is limited to. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The Client’s objective is . The end of liability date is . . . . . . . . . . . .years after the Completion of the
.............................................................. whole of the works.
.............................................................. If Option X20 is used (but not if Option X12 is also used)
.............................................................. . The incentive schedule for Key Performance Indicators is in . . . . . . . . . . . . . .
.............................................................. . A report of performance against each Key Performance Indicator is provided
.............................................................. at intervals of . . . . . . . . . . months.
..............................................................

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®

Contract Data Part 1

If Option Y(UK)1 is used and the Employer is to pay any charges made and is Part two – Data provided by the Contractor
paid any interest paid by the project bank
. The Employer is to pay any charges made and is paid any interest paid by
the project bank.

If Option Y(UK)3 is used Completion of the data in full, according to the Options chosen, is essential
to create a complete contract.
. term person or organisation
Statements given in all . The Contractor is
........................... .............................
contracts
........................... ............................. Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

........................... ............................. Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

........................... ............................. ..............................................................

. The direct fee percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
If Options Y(UK)1 and Y(UK)3 are both used
. The subcontracted fee percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
. term person or organisation

core
core
. The working areas are the Site and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

clauses
clauses
The provisions of Option Y(UK)1 Named Suppliers
. The key people are
If Option Z is used (1) Name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The additional conditions of contract are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.............................................................. Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

main
main
..............................................................

option clauses
option clauses
Qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..............................................................
(2) Name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

secondary
secondary
Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

option clauses
option clauses
Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..............................................................
Qualifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

cost
cost
Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

components
components
..............................................................
. The following matters will be included in the Risk Register
..............................................................
..............................................................

data
data

..............................................................

contract
contract

..............................................................

Optional statements If the Contractor is to provide Works Information for his design
. The Works Information for the Contractor’s design is in
..............................................................
..............................................................
..............................................................
..............................................................
..............................................................
..............................................................

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Contract Data Part 2 Engineering and Construction Contract

If a programme is to be identified in the Contract Data . The categories of design employees whose travelling expenses to and from
. the Working Areas are included in Defined Cost are
The programme identified in the Contract Data is . . . . . . . . . . . . . . . . . . . . . .
..............................................................
If the Contractor is to decide the completion date for the whole of the works
..............................................................
. The completion date for the whole of the works is . . . . . . . . . . . . . . . . . . . . . .
..............................................................
If Option A or C is used ..............................................................
. The activity schedule is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option C, D or E is used
If Option B or D is used
Data for Schedule of Cost . The listed items of Equipment purchased for work on this contract, with an
. The bill of quantities is. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Components on cost charge, are
If Option A, B, C or D is used Equipment time-related charge per time period
. The tendered total of the Prices is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................... ................... per . . . . . . . . .
.......................... ................... per . . . . . . . . .

core
core
If Option F is used

clauses
clauses
.......................... ................... per . . . . . . . . .
. Work which the Contractor will do himself is
.......................... ................... per . . . . . . . . .
activity price (lump sum or unit rate)
................................. ........................... . The rates for special Equipment are
................................. ........................... Equipment size or capacity rate

main
main
................................. ........................... .......................... ................... .............

option clauses
option clauses
................................. ........................... .......................... ................... .............
.......................... ................... .............
If Option Y(UK)1 is used
. The project bank is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................... ................... .............
. named suppliers are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The percentage for Working Areas overheads is . . . . . . . . . . . . . . . . . . . . . %.

secondary
secondary
If Option A or B is used . The hourly rates for Defined Cost of manufacture and fabrication outside

option clauses
option clauses
the Working Areas are
Data for the Shorter . The percentage for people overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
Schedule of Cost category of employee hourly rate
. The published list of Equipment is the last edition of the list published by
Components .................................... ........................
..............................................................

cost
cost
.................................... ........................
. The percentage for adjustment for Equipment in the published list is
.................................... ........................

components
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . % (state plus or minus). components .................................... ........................
. The rates for other Equipment are
. The percentage for manufacture and fabrication overheads is . . . . . . . . . . %.
Equipment size or capacity rate
............................. ................... .......... If Option C, D or E is used

data
data

contract
contract

............................. ................... ..........

Data for both schedules of . The hourly rates for Defined Cost of design outside the Working Areas are
............................. ................... .......... cost components
............................. ................... .......... category of employee hourly rate
.................................... ........................
. The hourly rates for Defined Cost of design outside the Working Areas are
.................................... ........................
category of employee hourly rate
.................................... ........................
.................................. ..........................
.................................... ........................
.................................. ..........................
. The percentage for design overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
.................................. ..........................
.................................. ..........................

. The percentage for design overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.

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Contract Data Part 2

®
. The categories of design employees whose travelling expenses to and Engineering and Construction Contract
from the Working Areas are included as a cost of design of the works and
Equipment done outside of the Working Areas are
Index by clause numbers (Option clauses indicated by their letters, main clause heads by bold numbers).
..............................................................
Terms in italics are identified in Contract Data, and defined terms have capital initial letters.
..............................................................
..............................................................
.............................................................. acceleration 36, A36.3, B36.3, C36.3, D36.3, E36.4, Acts
F36.4 Contracts (Rights of Third Parties) (1999) Y(UK)3
If Option C, D or E is used compensation events 60.1(9) Housing Grants, Construction and Regeneration
Key Date 36.1 (1996) as amended by the Local Democracy,
Data for the Shorter . The percentage for people overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %. quotations 36.1, B11.2(21), D11.2(21) Economic Development and Construction Act
Schedule of Cost .
acceptance 2009 W1, W2, Y(UK)2
The published list of Equipment is the last edition of the list published by
Components addition to Working Areas 15.1 additional conditions of contract Z1
.............................................................. conditions of subcontract 26.3 adjudication
.
contract data for subcontract C26.4, D26.4, E26.4, dispute resolution W1.3(111), W2.3(112)
The percentage for adjustment for Equipment in the published list is

core
F26.4 timings W1.3(8), W1.3(11),

clauses
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . % (state plus or minus). Contractor’s communication 13.4, 13.8, 14.1 W2.3(2)(8)(1112)
.
Contractor’s design 21.2, 21.3 Adjudication Table W1.3(1)
The rates for other Equipment are
Defects 44, 60.1(1)(9) Adjudicator
Equipment size or capacity rate Equipment design 23.1 decisions 51.3
form of communication 13.1 dispute resolution W1.2(1-5), W2.2(15)
.......................... ................... .............
insurance policies/certificates 85.1, 87.1, 87.2 nominating body W1.2(3), W2.2(3)

main
.......................... ................... ............. programme (first/revised) 31.3, 32.2, 50.3, not arbitrator W1.2(2), W2.2(2)
64.12, A31.4, A36.3, B36.3, C31.4, C36.3, replacement W1.2(4), W2.2(4)
.......................... ................... .............

option clauses
D36.3 resignation of W1.2(3)
.......................... ................... ............. quotations 44.2, 60.1(9), 62.3, 65.1, A36.3, tribunal W1.3(2)(10), W2.3(11)
A65.4, B36.3, C36.3, D36.3, E36.4, F36.4 tribunal reviews W1.4(14)(6), W2.4(13)
reasons for withholding 13.4, 13.8, 15.1, 21.2, administration order 91.1
23.1, 24.1, 26.23, 31.3, 60.1(9), 85.1, advanced payment 93.1, X14.13
87.1, A54.3, C26.4, D26.4, E26.4, F26.4, repayment X14.3
X13.1 advanced payment bond X14.2

secondary
option clauses
replacement Contractor’s employee 24.1 advanced payment(s) 93.1, X14.13
subcontract conditions 26.3 agents of Adjudicator W1.2(5), W2.2(5)
Subcontractor 26.2, 91.2 agreement, Parties/Party 12.4
acceptance procedure C11.2(25), D11.2(25), ambiguities 17, 60.3, 63.8, B60.6, D60.6
E11.2(25) amount due
Works Information F11.2(26) adjustment for inflation X1.1(b), X1.2, X1.4,

cost
Accepted Programme 62.2 X1.5

components
absence 64.2 and advanced payment repayment 93.1,
and Activity Schedule A54.2, A54.3, C54.2, C54.3 X14.3
changes 32.1, 63.7 assessing 50, 51.1, 51.3, 90.4, 93.1, C50.6,
dates/times 33.1, 60.1(2)(3)(5), 63.3 C53.34, D50.6, E50.7, F50.7, X1.1(b), X1.2,
definition 11.2(1) X1.4
prevention 19.1, 60.1(19) Contractor’s share D53.78

data
contract
termination 91.7 correction of assessment 50.5, 51.3, X1.2
see also programme definition 50.2
access 27.2, 43.4 payment 51.1, 51.3
to Site 31.2 retention in 93.1, X16.1
and use of Site 33 on termination 90.2, 90.4, 93.1, 93.2, A93.3
access date 30.1, 31.2 amount retained 50.3, X16.1, X16.2
Site 33.1 applicable law 11.2(5), 21.2, 23.1, 84.2
accounts and records, Contractor’s C11.2(25), C52.2, tests and inspections 40.1
C52.3, D11.2(25), D52.23, E11.2(25), E52.2, approval from Others, Contractor’s design 27.1
E52.3, F11.2(26), F52.2, F52.3 arbitration procedure W1.4(5), W2.4(4)
actions 10, 11.2(13,14), 14.2, 16.3, X12.2 arrangement with creditors 91.1
activity schedule A11.2(20), C11.2(20) assessment
Activity Schedule A11.2(20,30), A31.4, A54.13, Adjudicator W1.3(7), W2.3(7)
A63.12, C11.2(20)(30), C31.4, C54.13, amount due 50, 51.1, 51.3, 90.4, 93.1, C50.6,
C63.12 C53.3, C53.4, D50.6, D53.7, D53.8, E50.7,
revised A54.2, A54.3, C54.2, C54.3 F50.7, X1.1(b), X1.2, X1.4, X1.5

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Index Engineering and Construction Contract

compensation events 62.23, 63, 64, 65.12, indemnity against 83.1, 83.2 Completion (continued) terms identified 11.1
A63.10, A63.12, A65.4, B63.1013, C52.2, co-operation at risk reduction meeting 16.3 definition 11.2(2) third party rights Y3.1
C63.1112, C63.15, D11.2(25), D52.2, co-operation with Others 25.13 early warning of possible delay 16.1 time allowances 13.4, 31.1
D63.13, D63.15, E11.2(25), E52.2, E63.15, co-operation and trust 10.1, 26.3, X12.3(1) Key Date 16.1 weather data/weather measurement 60.1(13)
F52.2, X1.3 communications 13 and programme 31.2, 32.2 Contract Date 11.2(4), B60.4, D60.4, X2.1, X4.1,
Contractor’s share C53.1, C53.34, C93.4, C93.6, and acceptance of submission 13.4, 13.8, 14.1 section of the works X5.1 X13.1, X14.2
D53.5, D53.78, D93.56 address to which sent 13.2 and take over of works 35.12, 35.3, 60.1(15), Accepted Programme 60.1(19)
Defect(s) correction cost 45.2 Adjudicator W1.3(6), W2.3(6) X16.1, X16.2 compensation events 60.1(12)(19)
interest 51.2, 51.3 assessment of compensation events for whole of works 32.2, 50.1, 60.1(13), 92.1, 93.2, prevention 19.1
tests/inspections cost 40.6 Subcontractors C52.2, D52.2, E52.2, F52.2 C20.4, C53.3, D20.4, D53.7, E20.4, F20.4, termination 91.7
assessment date 50.1, 50.4, 51.12, C11.2(29), certificate(s) 13.6 X1.2, X16.1 Contract Date, Project Bank Account Y1.2
D11.2(29), E11.2(29), F11.2(29), X7.2, Y2.2 form defined 13.1 work necessary 11.2(2)(13) Contractor
assessment interval 50.1 language for 13.1 Completion Date (completion date) acceleration 36.1, 36.2
assignment of benefit 92.2 notification(s) 13.7 accelerated programme 36.1, A36.3, B36.3, C36.3, acceptance of communication/proposal/submission
Authorisation period for reply 13.3, 13.5 D36.3, E36.4, F36.4 13.4, 13.8, 14.1, 15.1, 21.2, 87.2
Project Bank Account Y1.1(1), Y1.9, Y1.10 receipt of 13.2 change to later date X7.2 access 27.2, 43.4
availability of resources C11.2(25), D11.2(25), time allowed for reply 13.3, 13.5, 31.3, 32.2, and compensation events 60.1(13)(15), 61.4, access and use of Site 33.1
E11.2(25) 60.1(6) 62.2, 63.3, A65.4, B65.4, C65.4, D65.4, accounts and records C11.2(25), C52.23,
time when effective 13.2 E65.3, F65.3 D11.2(25), D52.23, E11.2(25), E52.2,
bank bonds X13.1, X14.2 compensation definition 11.2(3) E52.3, F11.2(26), F52.2, F52.3
bankruptcy 91.1 Employer’s risk 80.1 if Defect(s) accepted 44.2 actions 10.1
base date X1.1(a), X1.3 see also indemnity notification of compensation events 61.3 Activity Schedule A31.4, A54.2, C31.4, C54.2
Base Date Index X1.1(a) compensation events 60 Price Adjustment Factor calculation X1.2 adding to working areas 15.1
bill of quantities B11.2(21), D11.2(21) amount due affected by 51.3 in programme (first/revised) 31.2, 36.1, A36.3, adjudication W1.3(12)(4), W2.3(3)(7)
Bill of Quantities B11.2(21)(28)(31), B55.1, assessing 62.23, 63, 64, 65.12, A63.10, A63.12, B36.3, C36.3, D36.3 advanced payment X14.1, X14.3
B60.47, B63.13, D11.2(21)(31)(33), D55.1, A65.4, B63.1013, C52.2, C63.1112, rights to change 63.4 advice to Project Manager C20.3, D20.3, E20.3,
D60.47, D63.13 C63.15, D11.2(25), D52.2, D63.13, D63.15, section of the works X5.1 F20.3
binding decisions, Adjudicator W1.3(10), W2.3(11) E11.2(25), E52.2, E63.15, F52.2, X1.3 and take over of works 35.12, 60.1(15) and ambiguities/inconsistencies 17.1
bodily injury 84.2 assumptions made 60.1(17), 61.6, 63.7, 65.2 and weather measurement 60.1(13) amount due to be paid to 50.2, 50.4, 51.1
bond(s) 91.2, X13.1, X14.2 Completion Date affected by 62.2, A65.4, B65.4, work to be done by 11.2(2), 30.1 assessment of compensation events 62.2, 64.1,
bonus for early Completion X6 C65.4, D65.4 Condition 11.2(9), 25.3, 30.3, 31.2, 63.3, 63.9, A63.14, B63.13, C63.14, C63.15, D63.13,
boundaries of the site 11.2(15) Completion Date notification 61.3 B60.5, D60.5 D63.15, E63.14, E63.15, F63.14
breach of contract 60.1(18) Contractor 60.1(1)(8)(10)(12)(19), 60.2, 60.3, conditions, identified and defined terms 11.2(9) Bill of Quantities B11.2(28), B63.13, D63.13
breach of statutory duty 80.1 61.16, F20.5 conditions of contract certificates issued to 13.6
and Defined Cost 61.4 identified and defined terms 11.1 co-operation 10.1, 25.13
calculations, assessment of compensation events for definitions 13.8, 60.1, B60.47, D60.4D60.7, for Subcontract 26.3 compensation events 60.1(1)(8)(10)(12)(19),
Subcontractors C52.2, D52.2, E52.2, F52.2 X2.1, X14.2 conditions of contract 60.2, 60.3, 61.16, F20.5
certificate(s)/certification implementing 32.1, 65, A65.4, B65.4, C65.4, additional Z1.1 costs 52.1, C40.7, D40.7
communication of 13.1, 13.6 D65.4, E65.3, F65.3 interpretation 12.3 decisions communicated to 30.2, 50.1, 60.1(8)
Completion 30.2, 35.2 Key Dates affected by 60.1(4), 61.3, 62.2, A65.4, and sectional Completion X5.1 default(s) 91.2, 91.3, 91.6
Defects 43.3, 50.1 B60.5, B65.4, C65.4, D60.5, D65.4 Contract Data/contract data Defect(s) 11.2(5), 42.2
payment 50.5, 51.13, 90.4, 91.4 notifying 61, X2.1 addresses for communications 13.2 Defect(s) acceptance/non-correction 44.1, 44.2
take-over date 35.3, 60.1(15) payment to Subcontractor D11.2(25), C11.2(25), Adjudicator identified W1.2(3), W2.2(3) Defect(s) correction 11.2(2)(6), 43.12, 43.4,
termination 90.1, 90.3, 90.5, C93.4, D93.5 E11.2(25), F11.2(26) conditions of contract Z1.1 45.12, C11.2(25), D11.2(25), E11.2(25)
changed Completion Date X7.2 performance suspension Y2.4 conditions of contract 11.1 delay damages X7.1
changed decision(s) 60.1(8), 61.13 Prices affected by 62.2, 63.1, A63.10, A65.4, currencies for payment X3.1, X3.2 delivery of Plant and Materials 41.1, 93.1
change(s) in Activity Schedule A54.2, A63.12, C54.2, B60.6, B63.10, B65.4, C65.4, D60.4, D60.6, delay damages X7.1 early Completion bonus X6.1
C63.12 D63.13, D65.4, X2.1 documents referred to in 11.2(16)(19) early warning 16.1, 16.2, 16.4, 61.5, 63.5
change(s) in forecast Prices, Completion Date and Key Prices not affected by 61.4 early Completion bonus X6.1 Equipment 11.2(7), 23.1, 31.2, 92.2
Dates due to compensation events E65.3, F65.3 Project Manager’s assessments 64, A63.10, A65.4, Employer’s risks 80.1 facilities and services provided/paid for by 40.2
change(s) in the law X2 B63.10, C63.15, D63.15, E63.15 forecasts of Defined Cost C20.4, D20.4, E20.4, F20.4 fault 61.1, 61.4, C11.2(25), D11.2(25),
change(s) of Prices, Completion Date and Key Dates quotations 61.4, 61.5, 62, 64.1, 64.34, 65.1, insurance 84.1, 87.2 E11.2(25), F11.2(26)
due to compensation events A65.4, B65.4, A11.2(22), B11.2(22), C11.2(25), low performance damages X17.1 health and safety 27.4
C65.4, D65.4 D11.2(25), E11.2(25), F11.2(26), X2.1 named key person 24.1 illegal/impossible requirements 18.1
change(s) of Prices due to compensation events 62.2, completed activities A11.2(27) payment 51.2, X14.1, X14.3 implementing compensation events 32.1, 65.1,
63.1, A63.12, B60.6, B63.13, C63.11, D60.6, completed work, definition B11.2(28) performance bond X13.1 E65.3, F65.3
D63.13 Completion 30 performance level X17.1 indemnity 83.1
change(s) in Works Information 14.3, 18.1, 44.1, acceleration of 36.1 price adjustment for inflation X1.1(c), X1.3 instruction(s) 14.3, 24.2, 27.3, 34.1, 36.1,
44.2, 60.1(1), 63.89 bonus paid if early X6.1 programme 11.2(1), 31.1, 50.3 60.1(10), 61.2, 61.46, 62.1, 62.34, 82.1,
civil commotion/war risks 80.1 certification of 30.2, 35.2 start-to-Completion interval 32.2 87.1, 91.6, C26.4, D26.4, E26.4, F26.4, X2.1
claims and compensation events 61.4, B60.5, D60.5 for subcontract C26.4, D26.4, E26.4, F26.4 insurance 84.12, 85.1, 85.34, 86.1, 87.13
Employer’s risk 80.1 decision on date 30.2 take over of works 35.1 Key Date 14.3, 30.3

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Index Engineering and Construction Contract

leaving Site/Working Areas 92.2 part submission 21.3 Defect(s) (continued) discounts, deduction from prices 52.1
liabilities 14.1, 61.4, X15.1 submission to Project Manager 21.2 correction after Completion C11.2(23) dismantling (during searching) 42.1
liability limitation X18.15 use by Employer 22.1 defect correction period 40.5, 43.24, 45.1 dispute resolution
low-performance damages X17.1 and Works Information 21.1, 21.2, 60.1(1) definition 11.2(5) unless United Kingdom Housing Grants,
management responsibility F20.2 Contractor’s employees 24.1 liability limitation X18.3 Construction and Regeneration Act (1996) as
marking of Equipment, Plant and Materials 71.1 insurance 84.1 loss/damage/wear due to 80.1 amended by the Local Democracy, Economic
method of working 35.3, A54.2, C54.2 removing 24.2 low performance damages X17.1 Development and Construction Act 2009
non-corrected Defects 45.12 Contractor’s share C50.6, C53, C53.1C53.4, C93.4, notifying 11.2(6), 42.2, 43.12 applies W1
notification of compensation events 61.16, X2.1 C93.6, D50.6, D53, D93.56 and priced contract(s) A11.2(27), B11.2(28) when United Kingdom Housing Grants, Construction
notified of delegate for Project Manager/Supervisor Contractor ’s share percentage C53.1, D53.5 searching (for) 42.1, 60.1(10) and Regeneration Act (1996) as amended by
14.2 Contracts (Rights of Third Parties) Act (1999) Y(UK)3 and tests/inspections 40.4, 40.6 the Local Democracy, Economic Development
notified of replacement for Project Manager/ Core Group X12.2(3-5) uncorrected 45, 60.1(9) and Construction Act 2009 applies W2
Supervisor 14.4 composition X12.1(3) Defects Certificate 11.2(6), 43.3
objects of value/historical-interest 73.1 correcting and assessment of amount due 50.1 early Completion bonus X6.1
obligations 91.2 assessment of amount due 50.5, 51.3, X1.2 and Contractor’s risks 81.12 early warning 16
parent company guarantee X4.1 assumptions about compensation events 60.1(17), and Employer’s risks 80.1 effects 16.1
as Party to contract 11.2(11) 61.6 and insurance cover 84.2 Key Date 16.1
payment(s) 40.6, 45.12, 51.1, 86.1, C50.6, Bill of Quantities mistakes B60.6, D60.6 Key Performance Indicators X20.2 responsibility 16.1, 61.5, 63.5, C11.2(25),
C52.2, D50.6, D52.2, E50.7, E52.2, F50.7, Defects 11.2(2), 32.1, 40.4, 43, 45.12, liability limitation X18.3 D11.2(25), E11.2(25), F11.2(26)
F52.2, X3.1, X3.2 C11.2(25), D11.2(25), E11.2(25) low performance damages X17.1 Risk Register 16.1, 16.34
performance bond X13.1 cost components data A11.2(22), C11.2(23), C63.15, and retention X16.2 Effect of payment, Project Bank Account Y1.12
period for reply 13.35, 32.2 D11.2(23), D63.15, E11.2(27), E63.15 defects date 11.2(6), 40.5 employees, of Adjudicator W1.2(5), W2.2(5)
physical conditions 60.1(12), 60.2, 60.3 costs and compensation events 61.7 Employer
Plant and Materials 27.2, 41.1, 80.1, 92.2, 93.1 additional costs 25.3 searching/notifying Defects 42.12 access 43.4
prevention 19.1 Contractor 52.1, C40.7, D40.7 testing 42.12 access and use of Site 33.1, 60.1(2)
programme (first/revised) 11.2(1), 31.13, Defect(s) correction 45.12 Defined Cost 52, C11.2(29), D11.2(29), actions 10.1
32.12, 50.3, 62.2, 64.1, 64.2 due to Adjudicator’s/tribunal’s decision 51.3 E11.2(29)(32), F11.2(29)(32) adjudication W1.3(1)
Project Bank Account Y(UK)1 Employer’s risk 80.1 in amount due on termination 93.1, 93.2 advanced payment by X14.13
proposed instruction/changed-decision 61.2 indemnity against 83.1, 83.2 and compensation events 61.4, 63.12, 63.7, amount due to be paid by 50.2, 51.1
quotations 36.1, 36.2, 44.2, 62.15, 64.1 insurance 86.1, 87.3 A63.10, B60.4, B63.10, B63.13, C63.11, breach of contract by 60.1(18)
reaction to compensation event 63.7 test/inspection repeat 40.6 D60.4, D63.11, X1.3, X2.1 certificates issued to 13.6
repairs/replacements 82.1 see also excess costs definition(s) A11.2(22), B11.2(22), C11.2(23), co-operation 25.2, 25.3
reply to communication 13.35, 31.3, 32.2, creditors, arrangement made with 91.1 D11.2(23), E11.2(23), F11.2(24) compensation events 60.1(1-3)(5)(14)(16)(18)
60.1(6), 62.36 currency of this contract 51.1, C50.6, D50.6, E50.7, and Fee calculation 11.2(8), 63.1, C11.2(29), Completion of works on termination 93.1, 93.2
responsibilities 14.1, 207, C20.3, C20.4, C26.4, F50.7, X3.1, X3.2 D11.2(29), E11.2(29) Contractor’s design 22.1
D20.34, D26.4, E20.34, E26.4, F20.24, forecast C20.4, D20.4, E20.4, F20.4 Contractor’s parent company guarantee X4.1
F26.4 damage(s) payment on termination D93.5 dates 31.2, 33.1, 60.1(2)(3)(5)
Risk Register revision 16.4 delay X7.1, X7.2 payments made by Contractor C50.6, C52.2, default 91.6
risks 63.6, 81.1, 84.2, 85.4 Employer’s risk 80.1 C52.3, D50.6, D52.2, D52.3, E50.7, E52.2, Defects Certificate 43.3
searching (for Defects) 42.1 insurance against 84.1 E52.3, F50.7, F52.2, F52.3 facilities and services provided by 40.2, 60.1(16)
starting/stopping work 30.1, 34.1, 91.6 low performance X17.1 defined terms 11, X1.1 fault 80.1
subcontract contract data C26.4, D26.4, E26.4, repair by Contractor 82.1 Delay/delay hindered by Contractor 91.3
F26.4 death insurance 84.1 and compensation events 62.2, 63.3, B60.5, D60.5 indemnity 83.1
subcontracted work C20.3, D20.3, E20.3, F20.2, decision(s) damages X7.1, X7.2 insurance 84.1, 85.4, 86.1, 87
F20.3 Adjudicator or tribunal 51.3 early warning to be given 16.1 as Party to contract 11.2(11)
Subcontractor 11.2(17), 26.13 assessment date 50.1 plans to deal with 32.1 payments by 51.1
take over of works 35.3, 43.4, 80.1 and compensation events 60.1(8), 61.1, 61.46 and priced contract(s) A11.2(27), B11.2(28) payments to C11.2(23), D11.2(23), E11.2(23),
termination 80.1, 90.2, 90.45, 91.2, 91.4, date of Completion 30.2 and tests/inspections 40.5, 60.1(11) F11.2(23)
91.67 Project Manager 30.2, 50.1, 60.1(8), 61.12, delegation by Project Manager/Supervisor 14.2 performance bond X13.1
tests and inspections 40.2, 40.3, 40.5, 40.6, 41.1, 61.46, 63.5, 64.1, C11.2(25), D11.2(25), delivery, testing and inspection before 41 Plant and Materials 31.2, 80.1
C40.7, D40.7 E11.2(25), F11.2(26) demolition 22.1, 73.2 Project Bank Account Y1.1(3), Y1.6, Y1.8, Y1.9,
title to objects and materials within Site 73.1, 73.2 risk reduction meeting 16.4 design Y1.11, Y1.13
title to Plant and Materials 70.1, 70.2 default(s) Contractor’s 11.2(5), 21, 22.1, 23.1, 27.1 programme 31.2, 60.1(5)
Works Information 11.2(19), 14.3, 63.89 Contractor’s 91.2, 91.3, 91.6 Employer’s 80.1 repayment of delay damages X7.1
Contractor’s design 21 Employer’s 91.6 of Equipment 23 replacement of Project Manager/Supervisor 14.4
acceptance 21.2, 21.3 defect correction period 40.5, 43.24, 45.1 of works C20.3, D20.3, E20.3, F20.3 responsibilities 83.2, 87.2
approval from Others 27.1 Defect(s) see also Contractor’s design rights to change 63.4
and Defects 11.2(5) accepting 44, 60.1(1)(9) direct fee percentage 11.2(8), 93.2 risks 60.1(14), 80, 81.1, 83.2, 85.4
and Equipment design 23.1 Contractor’s compensation X15.2 Disallowed Cost C11.2(23), D11.2(23), E11.2(23), take over of works 35.13, 43.4, 80.1, X6.1, X7.1,
liability of Contractor 14.1 Contractor’s liability 11.2(5), X15.1, X18.3 F11.2(24) X16.1, X16.2
limitation of Contractor’s liability X15.1 correcting 11.2(2)(6), 32.1, 40.4, 43, 45.2, definition(s) C11.2(25), D11.2(25), E11.2(25), termination 80.1, 90.2, 91.23, 91.67, 92.12,
management by Contractor F20.2 C11.2(25), D11.2(25), E11.2(25) F11.2(26) 93.12

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Index Engineering and Construction Contract

tests and inspections 40.2, 40.6, 60.1(16), C40.7, Housing Grants, Construction and Regeneration Act interpretation dates when needed 31.2
D40.7 (1996) as amended by the Local Democracy, compensation event 63.8 testing/inspection 40.2, 41.1, 42.1, 60.1(16)
title to Equipment, Plant and Materials 93.1 Economic Development and Construction Act conditions of contract 12.3 title to 73.2
title to Plant and Materials 70, 93.1 2009 W1, W2, Y(UK)2 legal 12 see also Plant and Materials
use of works by 11.2(2), 35.3 method of measurement B60.6, D60.6
working with see co-operation identified terms 11 Joining Deed method of working 35.3, A54.2, C54.2
Works Information 22.1, 60.1(1)(5)(16) illegal requirements 18 Project Bank Account Y1.1(2), Y1.1(6), Y1.6 military power, risks due to 80.1
Employer’s design 80.1 implementing compensation events 32.1, 65, A65.4, mistake(s)
Equipment B65.4, C65.4, D65.4, E65.3, F65.3 Key Date 30 assessment of amount due 51.3
definition 11.2(7) impossible requirements 18 acceleration 36.1, A36.3, C36.3, D36.3 Bill of Quantities B60.6, D60.6
design of 23 Incentive Schedule X20.1, X20.35 assessment of compensation events 63.89 multiple currencies X3
left on Site 72.1, 80.1 incentive schedule X20.1 and compensation events 60.1(4), 61.3, 62.2,
loss or damage 84.2 incentives, Partnering X12.4 A65.4, B60.5, B65.4, C65.4, D60.5, D65.4 named person 24.1
loss, damage or wear 80.1 inconsistencies 17, 60.3, 63.8, B60.6, D60.6 Condition 25.3 named suppliers
marking of 70.1, 71 indemnity 83 Contractor 14.3, 30.3 Project Bank Account Y1.1(2), Y1.13
and programme 31.2 information definition 11.2(9) Named Suppliers
rates in Contract Data X1.3 in Activity Schedule A54.1, C54.1 early warning 16.1 Project Bank Account, Y1.1(1), Y1.1(2), Y1.1(3),
removal of 72, 92.2, 93.2 in Bill of Quantities B55.1, D55.1 notification of compensation events 61.3, 61.4 Y1.5, Y1.6, Y1.9, Y1.10, Y1.13
termination 92.2 later recorded 65.2 and programme 31.2 national legislation Y
title 70.1, 70.2, 92.2 in programme 31.2, 31.3, 50.3 Project Manager 14.3, 60.1(4) NEC Adjudicator’s Contract W1.2(1), W2.2(1)
use by Employer 92.2 provided to Others 25.1 rights to change 63.4 NEC contract 26.3, C26.4, D26.4, E26.4, F26.4
see also Plant and Materials publicly available 60.2 Subcontractor failing to meet C11.2(23), negligence 80.1
errors, Adjudicator W1.3(11) see also Site Information; Works Information D11.2(23), E11.2(23), F11.2(23) nominating body, Adjudicator W1.2(3), W2.2(3)
excavation materials 73.2 injury insurance 84.1 Key Performance Indicators X20 notification
excess costs, Contractor’s share C53.2 inspection(s) 40, 60.1(10)(11) aspect of performance X20.1 acceptance of quotation(s) 62.3, 65.1
exchange rates C50.6, D50.6, E50.7, F50.7, X3.1 before delivery 41 performance reports X20.2 adjudication W1.3(12)(8-9), W2.3(12)(89)
experienced contractor Contractor’s cost C40.7, D40.7 key person 24.1 ambiguities/inconsistencies 17.1
and compensation events 60.1(12), 60.2, 61.5, 63.5 instalment repayment of advanced payment X14.3 assessment of compensation event 62.3, 64.3,
and physical conditions on Site 60.1(12), 60.2 instruction(s) language of communications 13.1 65.1
and prevention 19.1, 60.1(19), 91.7 compensation events resulting 60.1(1)(4)(7), 61.1 language of this contract 13.1 communication of 13.1, 13.7
extension of time for decision/quotation/reply 13.5, to Contractor 27.3 late payment(s) 51.23, X14.2 compensation events and assumptions 60.1(17),
62.5 form of communication 13.1 later recorded information 65.2 61
insurance 87.1 Latest Index X1.1(b) Contractor’s default 91.2, 91.3
facilities and services objects of value/interest 60.1(7) law Defects 11.2(6), 42.2, 43.12
for tests/inspections 40.2, 42.1, 60.1(16) quotation(s) to be submitted 36.1, 61.12, changes in X2, X2.1 delegate for Project Manager/Supervisor 14.2
see also services 61.56, 62.1, 62.34, 64.1, X2.1 and Defect(s) 11.2(5) illegal/impossible requirements 18.1
failure to pay in time, actions to be taken 91.4 to remove Contractor’s employee 24.2 interpretation 12 implementing compensation events A65.4, B65.4,
fault of Contractor 61.1, 61.4, C11.2(25), on resolution of ambiguities and inconsistencies national legislation Y C65.4, D65.4, E65.3, F65.3
D11.2(25), E11.2(25), F11.2(26) 17.1 release of Party from contract 91.5 Project Manager’s assessment 64.3, 65.1
fault of Employer or his design 80.1 to search (for Defects) 42.1 tax(es) 50.2 Project Manager’s decision(s) 63.5, 64.1
Fee C11.2(29), D11.2(29), E11.2(29)(32), to stop/not start work 34, 60.1(4), 91.6 tests and inspections 40.1 proposed instruction/changed-decision 61.2, 62.3
F11.2(29,32) and termination 91.6, 92.2 see also Acts replacement of Project Manager/Supervisor 14.4
calculation(s) 11.2(8), 63.1, 93.2, C50.6, D50.6, that change Key Date 14.3 law of the contract 12.2 termination 90.1
E50.7, F50.7 that change Works Information 14.3, 18.1, 44.2, legal rights, interference with 80.1 tests and inspections 40.3, 41.1
see also payment(s) 60.1(1), 63.89 legislation, national Y notified Defects, correction 32.1, 45.2
fee percentage see direct fee percentage insurance liability
float, provision in programme 31.2 certificates 85.1, 86.1, 87.13 Contractor’s design 14.1, X15.1 objects of value or historical interest 60.1(7), 73.1
forecasts 61.6, 63.1, 65.2, 93.2, C20.4, C53.3, cover 84 and insurance 84.2 observing tests 40.3
D20.4, D53.7, E20.4, E65.3, F20.4, F65.3 by Employer 84.1, 85.4, 86.1, 87 limitation X18 open market prices 52.1
form of communications 13.1 policies 85, 86.1, 87.13 reduction 83.2 operations (in programme) 31.2, 32.1
fraud, and insurance 85.2 signatories 85.1 liquidator for company/partnership 91.1 Others (other people)
Insurance Table 84.2 loss risks 80.1, 84.1 approval by 27.1
grouping of activities A11.2(27) insurer(s) 85.2, 85.4, X13.1 low performance at risk reduction meeting 16.2
guarantee(s) 91.2, X4.1 bonds X13.1, X14.2 damages X17 co-operation with 25.1
insurrection, risks due to 80.1 see also performance impairment Defect(s) correction by 45.2
health and safety interest lump sum(s) A11.2(30), A63.14, B11.2(28), definition 11.2(10)
Contractor 27.4 assessment of 51.2, 51.3 B63.13, C11.2(30), C63.14, C93.4, D11.2(31), hindered by Contractor 91.3
regulation(s) 91.3 compound calculation 51.4 D63.13, E63.14, F63.14, Plant and Materials supplied by 80.1
requirements 31.2 on late payment 51.2 and programme 31.2, 60.1(5)
Works Information 27.4 and payment certificate(s) 51.3 marking of Equipment, Plant and Materials 71 working with see co-operation
historical-interest objects found within Site 60.1(7), repaid delay damages X7.1 materials and Works Information 60.1(5)
73.1 interest rate 51.4 access to 27.2 Own Contract, definition X12.1(2)

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Index Engineering and Construction Contract

parent company guarantee X4 performance reports X20.2 programme 11.2(1), 31, 50.3, 62.2, 64.1 implementing compensation events 65.1, E65.3,
Parties/Party performance suspension Y2.4 accelerated 36.1, A36.3, B36.3, C36.3, D36.3, F65.3
Adjudicator’s communications W1.3(6), W2.3(6) period for reply 13.3, 13.4, 32.2, 36.2 E36.4, F36.4 inspection of Contractor’s accounts and records
Adjudicator’s instructions W1.3(5), W2.3(4) extension agreed 13.5 dates to be shown 31.2, 32.1, A31.4, C31.4 C52.3, D52.3, E52.3, F52.3
agreement 12.4 personal injury 84.1 revised 32, 36.1, 62.2, 64.2, A36.3, B36.3, C36.3, instruction(s) 14.3, 17.1, 18.1, 24.2, 27.3, 34.1,
and assessment date 50.1 see also insurance D36.3, E36.4, F36.4 44.2, 60.1(1)(4)(7), 61.12, 61.4, 62.1,
to contract 11.2(11) physical conditions of Site 60.1(12), 60.2, 60.3 Project Bank Account Y(UK)1 62.34, 82.1, 87.1, 91.6, C26.4, D26.4,
indemnity liability 83.1, 83.2 Plant and Materials 11.2(12)(17) Project Manager E26.4, F26.4, X2.1
insurance 84.2, 85.3 access to 27.2, 60.1(2) acceleration 36.1, A36.3, B36.3, C36.3, D36.3, insurance 85.1, 87.1
prevention 19.1 dates when needed 31.2 E36.4, F36.4 interest on payments 51.3
to subcontract 26.3 loss of or damage to 80.1, 82.1, 84.1 acceptance of communication/proposal/submission Key Date 14.3, 60.1(4)
and termination 90.1, 91.1, 91.5 not used to Provide the Works C11.2(25), 13.4, 14.1, 15.1, 21.2, 31.3, 85.1 Key Performance Indicators X20.3
third party rights Y3.1 D11.2(25), E11.2(25) acceptance of contract data for subcontract C26.4, moving of Equipment, Plant and Materials 70.2, 72.1
tribunal reviews W1.4(14), W2.4(13)(5) removal of 92.2 D26.4, E26.4, F26.4 notification of compensation events 61.16, X2.1
Partnering X12 replacement 82.1, 84.1 acceptance of quotation 44.2, 60.1(9), 62.3, notification of Contractor’s default 91.2, 91.3
actions X12.2 and termination 92.1, 93.1 65.1, A36.3, B36.3, C36.3, D36.3, E36.4, notification of implementing compensation events
change of Partnering information X12.3(6) testing/inspection before delivery 41.1 F36.4 E65.3, F65.3
Core Group X12.2(3-5) title 70.1, 70.2, 92.1, 93.1 access 27.2 objects of value/historical-interest 60.1(7), 73.1
defined terms X12.1 wastage C11.2(25), D11.2(25), E11.2(25) Activity Schedule A54.2, C54.2 performance bond X13.1
early warning X12.3(3) see also Equipment addition to working areas 15.1 prevention 19.1
incentives X12.4 prevention 19 Adjudicator’s reviews/revisions W1.3(5), W2.3(4) programme 11.2(1), 31.1, 31.3, 32.2, 50.3
Key Performance Indicators X12.4(12) Price Adjustment Factor(s) X1 advanced payment bond X14.2 Project Bank Account Y1.4, Y1.6, Y1.7, Y1.9, Y1.14
Own Contract X12.1(2) assessment of compensation events X1.3 and ambiguities/inconsistencies 17.1 quotations for acceleration 36.12, 60.1(9),
Partnering Information X12.1(4), X12.3(1) calculation of X1.2 assessment of amount due 50.1, 50.4, 50.5 A36.3, B36.3, C36.3, D36.3
representatives X12.2(2) definition X1.1(c) assessment of compensation events 61.6, 63.9, quotations for compensation events 62.1, 62.35
subcontracting X12.3(9) price adjustment use X1.4, X1.5 64, A63.10, B63.10, B63.13, C63.15, replacement of 14.4
timetable X12.3(7) Price for Work Done to Date D63.13, D63.15, E63.15 reply to communication 13.35, 60.1(6), 62.3,
payment(s) 51 adjustment for inflation X1.4, X1.5 assessment of Contractor’s share C53.1, C53.34, 62.56
advanced 93.1, X14.13 and assessment of amount due 50.2, 50.3, 93.2, C93.4, C93.6, D53.5, D53.78, D93.56 request to remove resources from Working Areas
certified 50.5, 51.13, 90.4 C93.4, D93.5 assessment date decided by 50.1 C11.2(25), D11.2(25), E11.2(25)
conditional on success of test or inspection 40.5 and assessment of Contractor’s share C53.14, assessment of Defect(s) correction cost 45.2 Risk Register revision 16.4
Contractor 40.6, 45.2, 51.1, 86.1, C50.6, C52.2, D53.58 assessment of test/inspection cost 40.6 start/stop of work 34.1, 60.1(4), 91.6
D50.6, D52.2, E50.7, E52.2, F50.7, F52.2, definition(s) A11.2(27), B11.2(28), C11.2(29), assumptions about compensation events 60.1(17), subcontract conditions 26.3
X3.12 D11.2(29), E11.2(29), F11.2(29) 61.6 subcontracting C26.4
dates Y2.2 and retention X16.1 certificates 13.6, 30.2, 50.5, 51.13, 60.1(15), Subcontractor acceptance 26.2, 91.2
Employer’s insurance 87.3 Prices/prices/prices 82.1, 90.1, 90.34, C93.4, D93.5 take over of works 35.3, 43.4, 60.1(15)
Housing Grants, Construction and Regeneration Act and acceleration 36.1, A36.3, B36.3, C36.3, D36.3 co-operation 10.1, 16.3 and termination 90.1, 90.3, 90.4, 91.2
(1996) as amended by the Local Democracy, and Activity Schedule A11.2(20)(27), A54.3, compensation events tests and inspections C40.7, D40.7
Economic Development and Construction Act A63.12, C11.2(30), C54.3, C63.12 60.1(1)(4)(6)(7)(8)(9)(15)(17), 61.16, Works Information 14.3, 18.1, 44.2, 60.1(1)
2009 Y2.23 and Bill of Quantities B11.2(31), B60.4, B60.6, A63.10, B63.10, C63.15, D63.15, E63.15, property, loss or damage 84.1
interest 51.4 B63.13, D11.2(31), D60.4, D60.6, D63.13 F20.5 proposal(s)
late 51.23, X14.2 changes to 63.12 Completion 30.2 acceleration 36.1
and marking of Equipment, Plant and Materials 71.1 and compensation events 61.4, 62.2, 63.12, Contractor’s advice C20.3, D20.3, E20.3, F20.3 to add to Working Areas 15.1
not made 91.4 A63.10, A63.12, A65.4, B60.4, B60.6, Contractor’s default 91.2, 91.3 Defect(s) acceptance/non-correction 44.1
notice of intention Y2.3 B63.10, B63.13, B65.4, C63.12, C63.14, Contractor’s design 11.2(5), 21.2 form of communication 13.1
Project Bank Account Y1.7, Y1.8, Y1.9, Y1.10, C65.4, D60.4, D60.6, D63.13, D65.4, Contractor’s employees 24.1, 24.2 risk reduction meeting 16.3, 16.4
Y1.11, Y1.12 E63.14, E65.3, F63.14, F65.3, X2.1 correction of mistakes in Bill of Quantities B60.6, proposed instruction or changed decision 61.2, 62.3
taxes 50.2 competitively tendered/open market 52.1 D60.6 Provide the Works 20
on termination 93.1, 93.2, A93.3, C93.4, C93.6, Contractor’s share C53.1C53.4, D53.5 date of Completion 30.2 and addition to Working Areas 15.1
D93.56 definition A11.2(30), B11.2(31), C11.2(30), decisions 30.2, 50.1, 60.1(8), 61.12, 61.46, Contractor’s responsibilities 11.2(7), 14.1, 20.1,
time to be made 51.2, X14.2 D11.2(31), E11.2(32), F11.2(32) 63.5, 64.1, C11.2(25), D11.2(25), 23.1, 26.3, C20.34, C26.4, D20.34,
withholding Y2.3 early warning of possible increase 16.1 E11.2(25), F11.2(26) D26.4, E20.34, E26.4, F20.35, F26.4
payment certificate 50.5, 51.1, 51.3, 91.4 if Defect(s) uncorrected/accepted 44.2 Defect(s) acceptance/non-correction 44.1, 44.2 and Equipment 11.2(7), 23.1
payment clauses 50 notification of compensation events 61.3 delegation 14.2 meaning of term 11.2(13)
people 24 rights to change 63.4 Disallowed Cost decision C11.2(25), D11.2(25), Plant and Materials not used C11.2(25),
rates in Contract Data X1.3 and termination 93.2, C93.4, D93.5 E11.2(25), F11.2(26) D11.2(25), E11.2(25)
see also employees procedures, termination 90.2, 90.3, 92 duties required 10.1, 14 and programme 31.2
performance, see also Key Performance Indicators proceedings early warning 16.1, 16.2, 16.4, 61.5, 63.5 resources not used C11.2(25), D11.2(25),
performance bond X13, X13.1 Employer’s risk 80.1 Equipment design 23.1 E11.2(25)
performance impairment indemnity against 83.1, 83.2 forecasts of Defined Cost C20.4, D20.4, E20.4, and Works Information 11.2(19), 20.1, C11.2(25),
early warning of possibility 16.1 procurement procedure C11.2(25), D11.2(25), F20.4 D11.2(25), E11.2(25)
see also low performance E11.2(25), F11.2(26) illegal/impossible requirements 18.1 publicly available information 60.2

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Index Engineering and Construction Contract

quantities B11.2(28)(31), B60.47, D11.2(31), retention free amount X16.1 start(ing) work 30 taxes 52.1
D60.47 retention percentage X16.1 instruction(s) given not to 34.1, 60.1(4), 91.6 payment 50.2
see also bill of quantities; Bill of Quantities reviews, tribunal W1.4(16), W2.4(15) stopping work 34.1, 60.1(4), 91.6 termination 90
quotations revised Activity Schedule A54.2, A54.3, C54.2, C54.3 strikes, risks due to 80.1 amount due on 90.2, 90.4, 93.1, 93.2, A93.3
for acceleration 36.12, 60.1(9), A36.3, B36.3, revised programme 32.12, 36.1, 64.2, A36.3, subcontract certification of 90.1, 90.3, 90.5, C93.4, D93.5
C36.3, D36.3, E36.4, F36.4 B36.3, C36.3, D36.3, E36.4, F36.4 adjudication W1.3(4), W2.3(3) and insurance cover 84.2
acceptance of 36.1, 44.2, 60.1(9), 62.3, 65.1, revised quotation 62.3, 62.4, 64.1 contract data C26.4, D26.4, E26.4, F26.4 loss/damage risks 80.1
A36.3, B36.3, C36.3, D36.3 revolution, risks due to 80.1 subcontracted fee percentage 11.2(8) payment on 93.1, 93.2, A93.3, C93.4, D93.5
for compensation events 61.4, 61.5, 62, 64.1, Rights of Third Parties (Contracts) Act Y(UK)3 subcontracting 26, C20.3, C26.4, D20.3, D26.4, procedures 90.2, 90.3, 92
64.34, 65.1, A11.2(22), C11.2(25), riot risks 80.1 E20.3, E26.4, F20.2, F20.3, F26.4 Project Bank Account Y1.14
D11.2(25), E11.2(25), F11.2(26), X2.1 risk allowances 63.6 assignment of benefits 92.2 reasons for 90.2, 91
if Defect(s) accepted 44.2, 60.1(9) risk reduction meeting conditions 26.3 Termination Table 90.2, 92.2, 93.2
for proposed instruction/changed-decision 61.2 purpose 16.3 Contractor’s management responsibility F20.2 tests/testing 40
revised 62.3, 62.4, 64.1 records 16.4 Defined Cost A11.2(22), C11.2(23), D11.2(23), before delivery 41
who attends 16.2 E11.2(23), F11.2(26) compensation events resulting 60.1(10)(11)(16)
radioactive contamination 80.1 Risk Register Subcontractor Contractor’s cost C40.7, D40.7
rates definition 11.2(14) acceptance by Project Manager 26.2, 91.2 searching/notifying Defects 42.12
in assessing compensation events A63.14, B63.13, early warning 16.1, 16.34 appointment 26.2, 26.3, 91.2 third party rights, contracts Act Y3.1
D63.13 Project Manager revision 16.4 compensation event assessments C52.2, time, see also Completion; Key Date; start(ing) work
in Bill of Quantities B11.2(28)(31), B60.4, records revision 16.4 D11.2(25), D52.2, E11.2(25), E52.2, time allowed
D11.2(25,31), D60.4, D63.13 risks F11.2(26), F52.2 certification of Completion 30.2
in Contract Data X1.3, X6.1, X7.1 Contractor’s 63.6, 81, 83.2, 84.2, 85.4 definition 11.2(17) certification of payment 50.5, 51.1, 90.4
rebates, deduction from prices 52.1 Employer’s 60.1(14), 80, 81.1, 83.2, 85.4 payments made C11.2(23)(25), D11.2(23)(25), certification of take over 35.3
rebellion, risks due to 80.1 E11.2(23)(25), F11.2(24)(26) compensation events 61.1, 61.3, 61.4, 64.34
receipt of communications 13.1 safety see health and safety submission(s) Defect(s) correction 43.2
receiver over assets 91.1 samples 40.2, 42.1, 60.1(16) addition to Working Areas 15.1 extension(s) agreed 13.5, 62.56
records savings, Contractor’s share C53.2 communications 13.1, 13.4 payment of amount due 51.2, 91.4
Contractor’s C11.2(25), C52.23, D11.2(25), Schedule of Cost Components C11.2(23), D11.2(23), Contractor’s design 21.2 programme submission/acceptance 31.1, 31.3, 32.2
D52.23, E11.2(25), E52.23, F11.2(26), E11.2(23) Equipment design 23.1 Project Manager not replying 64.4
F52.23 Shorter Schedule A11.2(22), B11.2(22), C63.15, forecasts of total Defined Cost C20.4, D20.4, reply to communications 13.3, 13.5, 31.3, 32.2,
form of communication 13.1 D63.15, E63.15 E20.4, F20.4 60.1(6)
risk reduction meeting 16.4 Schedule of Partners X12.1(1) insurance policies/certificates 85.1, 86.1, 87.1, start/restart of work 91.6
Risk Register revision 16.4 searching for Defects 42.1, 60.1(10) 87.3 time clauses 30
re-covering (during searching) 42.1 section of the works X5.1 non-acceptance of 13.8, 15.1, 21.2, 23.1, 26.2, time risk allowances 31.2, 63.6
re-erecting (during searching) 42.1 sectional Completion X5 26.3 timings, adjudication W1.3(8)(10-11),
referral, adjudication W1.3(13), W2.3(13) services 11.2(13) programme (first/revised) 31.2, 32.2, 50.3, 64.1, W2.3(2)(8)(1112)
removing see also facilities and services 64.2, A31.4, C31.4 title 70
Contractor’s employee 24.2 share ranges C53.1, D53.5 quotations 36.1, 36.2, 44.2, 61.4, 62.1, 62.36, Equipment, Plant and Materials 92.1, 92.2
Equipment 72, 92.2, 93.2 Shorter Schedule of Cost Components A11.2(22), 64.1, X2.1 materials from excavation and demolition 73.2
Plant and Materials 92.2 B11.2(22), C63.15, D63.15, E63.15 Subcontractor/subcontract conditions/contract object of value or historical interest 73.1
resources C11.2(25), D11.2(25), E11.2(25) Site data 26.2, 26.3, C26.4, D26.4, E26.4, F26.4 Plant and Materials 70
repairs 82 access to 31.2, 60.1(2) subrogation rights 85.2 total of the Defined Cost, payment on termination
replacement(s) access and use of 33.1 Supervisor D93.5
of Adjudicator W1.2(4), W2.2(4) definition 11.2(15) access 27.2 Total of the Prices
Contractor’s employee 24.1 historical-interest/valuable objects found 60.1(7), Adjudicator’s reviews/revisions W1.3(5), W2.3(4) Contractor’s share D53.58
Equipment 80.1, 84.1 73.1 certificates issued by 13.6, 43.3, 50.1 identified and defined terms D11.2(33)
Plant and Materials 82.1, 84.1 information describing 11.2(16) and compensation events 60.1(6)(8)(10)(11), 61.1 total of the Prices
Project Manager/Supervisor 14.4 location X2.1 Defects notified by 11.2(6), 42.2, 43.1, 43.3 Activity Schedule A54.3, C54.3
reply physical conditions 60.1(12), 60.2, 60.3 delegation 14.2 adjustment for inflation X1.5
form of communication 13.1 removal of Equipment, Plant and Materials 72.1, 92.2 duties required 10.1, 14 compensation events B60.4, D60.4
time allowed 13.35, 31.3, 32.2, 36.2, 60.1(6), and risks 80.1 instructions given by 27.3, 61.1 Contractor’s share C53.1, C53.3
62.56 starting of work 30.1 marking of Equipment, Plant and Materials 70.1, early warning of possible increase 16.1
resignation of Adjudicator W1.2(3), W2.2(3) termination 92.2 71.1 identified and defined terms 11.2(27)
resources not used to Provide the Works C11.2(25), visual inspection 60.2 replacement of 14.4 payment on termination 93.2, C93.4, C93.4
D11.2(25), E11.2(25) Site Information 11.2(16), 60.2 reply to communication 13.3, 14.1, 60.1(6) tribunal
responsibilities and Activity Schedule A54.1, A54.2, C54.1 searching (for Defects) 42.1, 60.1(10) Adjudicator W1.3(2)(10), W2.3(11)
Contractor 14.1, 207, C20.3, C20.4, C26.4, ambiguities/inconsistencies 60.3 tests and inspections 40.3, 40.5, 41.1, 60.1(11) arbitration W1.4(5), W2.4(4)
D20.34, D26.4, E20.34, E26.4, F20.24, and Bill of Quantities B55.1, D55.1 suppliers 11.2(10)(17) costs D11.2(25)
F26.4 starting date 31.2, 32.2, 50.1, 81.1, 84.2, 87.1, Project Bank Account Y1.1(2), Y1.6 decisions 51.3
Contractor’s 11.2(7), 14.1, 20, 83.2 C20.4, D20.4, E20.4, F20.4 proceedings C11.2(25), D11.2(25), E11.2(25)
Employer’s 83.2, 87.2 dispute resolution W1.2(1), W2.2(1) take over of works 35, 43.4, 60.1(15), 80.1, X6.1, reviews W1.4(16), W2.4(15)
retention 50.3, 93.1, X16 insurance 85.1 X7.1, X16.1, X16.2 trust and co-operation 10.1, 26.3, X12.3(1)

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 For use on projects associated with UK Shared Business Services Ltd For use on projects associated with UK Shared Business Services Ltd
®

Index

Trust Deed Contractor’s management responsibility for design,

Project Bank Account Y1.1(5), Y1.13 construction and installation F20.2
and Defects 11.2(5)
uncorrected Defects 45, 60.1(9) design C20.3, D20.3, E20.3, F20.3
uncovering work (during search) 42.1 early warning of possible performance impairment
undecided disputes, Adjudicator W1.2(4), W2.2(4) 16.1
United Kingdom Housing Grants, Construction and Equipment left in 72.1
Regeneration Act (1996) as amended by the information specifying/describing 11.2(19), 25.1
Local Democracy, Economic Development and loss of or damage to 80.1, 82.1, 84.1
Construction Act 2009 W1, W2 part provided by Subcontractor 11.2(17)
use of works by Employer 11.2(2), 35.3 Plant and Materials included 11.2(12)(17)
usurped power, risks due to 80.1 section X5.1
utilisation of resources C11.2(25), D11.2(25), taking over 35, 43.4, 60.1(15), 80.1, X6.1, X7.1,
E11.2(25) X16.1, X16.2
Works Information
valuable objects found within Site 60.1(7), 73.1 acceptance/procurement procedure C11.2(25),
visual inspection of Site 60.2 D11.2(25), E11.2(25), F11.2(26)
accounts and records C52.2, D52.2, E52.2, F52.2
waiver by insurers 85.2 and Activity Schedule A54.1, C54.1
war 80.1 advanced payment bond X14.2
wastage of Plant and Materials C11.2(25), assessing compensation events A63.10, B63.10
D11.2(25), E11.2(25) and Bill of Quantities B55.1, D55.1
watching tests 40.3 change(s) 14.3, 18.1, 44.12, 60.1(1), 63.89
wear to works, Employer’s risk 80.1 and compensation events 60.1(1)(16), 63.89
weather conditions 60.1(12) Completion Date 11.2(2)
weather data/weather measurement 60.1(13) conditions stated in 25.1, 60.1(5)
whole of the works X5.1 Contractor’s accounts and records C52.2, D52.2,
Completion 32.2, 50.1, 60.1(13), 93.12, C20.4, E52.2, F52.2
C53.3, D20.4, D53.7, E20.4, F20.4, X1.2, Contractor’s design 21.12, 22.1, 60.1(1), X15.1
X16.1 Contractor’s parent company guarantee X4.1
Defined Cost C20.4, D20.4, E20.4, F20.4 and Defects 44.1, 44.2
winding-up order 91.1 definition 11.2(19)
witnesses, tribunal proceedings W1.4(6), W2.4(5) Equipment 11.2(7)
Working Areas (working areas) 11.2(18) health and safety 27.4
addition 15 instructions that change 14.3, 18.1, 44.2, 60.1(1),
Equipment, Plant and Materials outside 71.1 63.89
Equipment, Plant and Materials removed from 92.2 marking of Equipment, Plant and Materials 71.1
Equipment, Plant and Materials within 41.1, 93.1 part of works not in accordance with 11.2(5)
Plant and Materials outside 70.1, 70.2, 71.1 performance bond X13.1
Plant and Materials within 41.1, 70.2, 93.1 and programme 31.2
resources removed from C11.2(25), D11.2(25), and Providing the Works 11.2(19), 20.1,
E11.2(25) C11.2(25), D11.2(25), E11.2(25)
sharing with Others 25.1 subcontract work F20.2
working with Employer/Others see co-operation take over of works 35.2
works tests and inspections 40.12, 41.1, 42.1,
Completion of whole 11.2(13), 32.2, 50.1, 60.1(16)
60.1(13), 92.1, 93.2, C20.4, C53.3, D20.4, title to materials 73.2
D53.7, E20.4, F20.4, X1.2, X16.1 uncorrected Defects 45.12
Contractor’s design 21.1, 22.1, X15.1

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