5 brilliant words I've taken from the NEC3 Engineering and Construction Contract (ECC), clause 62.1. How many people actually use these prolifically I wonder in the management of compensation events? What the clause actually says is...'After discussing with the Contractor different ways of dealing with the compensation event which are practicable, the Project Manager may instruct the Contractor to submit alternative quotations.'
Imagine that. Truly acting on behalf of the (your) Employer by discussing with the Contractor the fact that this particular Employer is really focused on time for this project, or cost, or whatever. Then getting a quotation for the normal resources etc for dealing with the compensation event, then an alternative (if possible) where maybe nights and/or weekends and/or double shifts/gangs or re-sequencing, or whatever, are utilised.
Then we can make a sensible decision on what's best in the circumstances. So please communicate with each other, it's a good, healthy thing and maybe we can achieve each others' objectives along the way too.
Friday, 17 July 2015
Wednesday, 8 July 2015
An anonymous question from a civil servant on the possibility of advanced payments.....
I've been asked to ask this question anonymously from a civil servant. Here's your chance supply chain members to raise clients' eyebrows and to try and bring about massive change in payment practice - from negative cashflow to positive cashflow, and please tell all of the potential savings/positive behavioural change and so on............
What commercial benefits would we (clients) gain if we used advance payrments on projects and would this have any challenges to NEC3 contracts? If money was paid up front a project through a project bank account would it interest you? Particularly would like replies from Tier 2 suppliers and consultants?
What commercial benefits would we (clients) gain if we used advance payrments on projects and would this have any challenges to NEC3 contracts? If money was paid up front a project through a project bank account would it interest you? Particularly would like replies from Tier 2 suppliers and consultants?
Tuesday, 7 July 2015
Just a thought on z clauses......
Having reviewed a few tender documents recently and the horrors of z clauses within them I was thinking just how much the z clause industry is costing the economy? How much time/cost is involved in preparing (hashing?) the z clauses, which passes to x tenderers to their advisers then all of their suppliers and tier 2 contractors and there advisers and on and on and on......The cost must be horrific and to what end? Nobody says NEC3 contracts are perfect and in an unamended form will always address all client's needs, but one document I reviewed recently had 40+ pages of these things, even including a z clause that deleted a secondary Option (rather than just not select it in the Contract Data) - who had that brainwave? Do you really have the right starting point when you end up with amends bigger than the original contract? Do advisers actually listen to how their clients wish to do business and ensure that their requirement is met, or do advisers tinker for their own ends? And what does all of this cost the taxpayer I wonder in public sector contracts?
So here's a (brave) thought for the second half of 2015.....
Clients about to engage advisers to write reams of z clauses.....stop. Don't do it. Leave the contract as is, give half of the money you would have paid the advisers to charity and invest the other half in making sure the Works Information (for ECC, Scope etc for other NEC3 contracts) is a quite brilliant document. This will lead to better behaviour, lower tender costs, sensible contract management and a better industry.....who's first up to give this a real go and let us know how you get on?!
So here's a (brave) thought for the second half of 2015.....
Clients about to engage advisers to write reams of z clauses.....stop. Don't do it. Leave the contract as is, give half of the money you would have paid the advisers to charity and invest the other half in making sure the Works Information (for ECC, Scope etc for other NEC3 contracts) is a quite brilliant document. This will lead to better behaviour, lower tender costs, sensible contract management and a better industry.....who's first up to give this a real go and let us know how you get on?!
Friday, 8 May 2015
NEC student survey
Dear all,
A very short survey from a student for your completion if you would be so kind.
Thank you.
http://1drv.ms/1IlfZPy
A very short survey from a student for your completion if you would be so kind.
Thank you.
http://1drv.ms/1IlfZPy
Wednesday, 1 April 2015
NEC student survey
Dear all,
Another student survey, is there just enough lunchtime left for you to do this?!
In the author's own words.....
I am a final year student carrying out my dissertation of clause 10.1 within the NEC.
I require results from the contractor, client and legal sides and as I carried out my placement for Costain last year, currently all results I'm getting back are from the contractor's view point.
The link to the questionnaire is below and shouldn't take more than a few minutes.
Many thanks
Jamie
https://www.surveymonkey.com/s/Hemphrey
Another student survey, is there just enough lunchtime left for you to do this?!
In the author's own words.....
I am a final year student carrying out my dissertation of clause 10.1 within the NEC.
I require results from the contractor, client and legal sides and as I carried out my placement for Costain last year, currently all results I'm getting back are from the contractor's view point.
The link to the questionnaire is below and shouldn't take more than a few minutes.
Many thanks
Jamie
https://www.surveymonkey.com/s/Hemphrey
Friday, 20 March 2015
Monday, 16 March 2015
'TBA' is hereby banned.......
Having recently reviewed probably the worst tender document ever seen I was shocked to find the consistent use of 'TBA' in the very last places I imagined it could be. How can the starting date, access dates and Key Dates (amongst others) all have 'TBA' against them? How can any Contractor price this, or programme, or when might they decided/by whom and what if they are not?
And there I was thinking we had half a chance of being a world class industry....
By the way, 'TBD' was also used (just to break the monotony of 'TBA' I assume) - what does 'TBD' mean, 'To Be Decided'? 'To Be Drunk'? Something else? TBA/TDB are now officially banned, anyone found using them will face the consequences.....
And there I was thinking we had half a chance of being a world class industry....
By the way, 'TBD' was also used (just to break the monotony of 'TBA' I assume) - what does 'TBD' mean, 'To Be Decided'? 'To Be Drunk'? Something else? TBA/TDB are now officially banned, anyone found using them will face the consequences.....
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