Thursday, 12 July 2012

Joint working on quotations for compensation events

Sometimes we struggle to shake off the past. The Contractor bigs up his claim and the Client's side sit eagerly waiting with a red pen to carve through it.....remember all of this?

Hopefully this should not occur when using NEC3 Contracts and the proactive processes built in to them. I do though hear of postbox approach to preparing quotations, you have a go over there and we will have a look at it from over here.....

Why not get the PM/Contractor team to sit down together and work through the quotation together - then instantly formalising through the quotation submission/acceptance - saves time and hassle and maybe even the cost of a stamp! Being serious though, we don't have to have a 'them and us' approach to preparing quotations for compensation events. Many can just be agreed in minutes, some in an hour or so and others will need that bit more care - judge appropriate time for each and try to work together to achieve the goal of agreeing the time/cost of each compensation event as quickly as possible.

Rob

An interview with Dr Martin Barnes....

Dear all, take a look at an interview between NEC consultant Robert Gerrard and NEC creator Martin Barnes, discussing the inspiration behind the NEC and how it differs from other contract forms.

http://www.neccontract.com/about/index.asp

Monday, 9 July 2012

Preliminaries - (a few!) watch it points.....

Many times we are asked, "where's the prelims (or preliminaries) in NEC3 Contracts?" I would say, actually what are these and why do they even exist? These seem to have developed over the years in the building industry and they seem to me to be a complete mish mash of technical matters, pricing matters, conditions of contract, constraints, pricing notes and on an on. NEC3 Contracts do not provide for documents called 'Prelimaries' or 'Prelims' but most of the matters within them are generally required, but on the correct documentation/place.

So, with some careful thought, you can use the information but I would not incorporate such a document as such into tender documents.  Here's a few reasons why, looking at the most recent 'Sample NEC Preliminaries' I came across in relation to using the NEC3 Engineering and Construction Contract (ECC):

1. Project particulars referred to - isn't this exactly the function of the ECC Contract Data except we get people such as 'client' thrown in and the Principal Contractor and CDM Co-ordinator (shouldn't that be dealt with by separate communication, as required by statute) and the beloved 'clerk of works'. Of course I know what is sort of referred to but all we are doing is creating ambiguity because we are lazy.

2. Terms like tender and contract are used ad hoc, and tendering rules are thrown in. Surely you should never accidentally or deliberately bring into a contract document some tendering rules/terms?

3.  Terms like the Site/existing buildings - isn't that the purpose of the Site Information, in the main? If the Site Information merely points to the Preliminaries as does the Works Information, there's a real risk the two will become one and you've a real problem on your hands. The contract points to the right document for the right reason, to lug everything in one pot is fraught with danger.

4. Suddenly in this particular document was thrown in details of/reference to the NEC3 Engineering and Construction Short Contract. I'll leave you to wonder why, what ....!

5. Employer and Contractor, amongst others, are normalised not italicised so are they different to the identified equivalents?

6. Within the Preliminaries was reference to the Specification which in turn includes Preliminaries. No, I don't get that either.

7. A schedule of rates was asked for to be included - why, how will this be used, where are the changes to the contract to explain what/why etc? There is then a standard price book referred to as being the basis for 'valuation' - I can see some of you shaking your head now....

8. Provisional Sums - you knew they had to feature! NEC3 Contracts make no provision at all for provisional sums, so how can they just be thrown in?

9. And so on, you get the drift and this is just a watch it note!

Take care, think about the quality of documentation you need to prepare, use the like of the ECC Works Information as a template, do not just used random so called 'Sample NEC Preliminaries' without a great deal of thought and challenge those who produce these in the first place. Then maybe we start to produce better quality tender documentation.....

Rob

NEC student research

Dear all,

Another student survey if you could spare some time please, this one being iphone compatible so easy then......

Regards,
Rob

https://www.surveymonkey.com/s/NEC_vs_other_contracts