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Webinar: The Project Manager in the NEC4 ECC what’s new and different? Richard Patterson and Robert Gerrard Delivering real value
Webinar: The Project Manager in the NEC4 ECC
what’s new and different?
Richard Patterson and Robert Gerrard
Delivering real value
Speakers
The Project Manager in the NEC4 ECC: what’s new and different? 2
Richard Patterson NEC4 drafter, Mott MacDonald
Robert Gerrard NEC Users’ Group Secretary and NEC4 drafter
NEC4
The Project Manager in the NEC4 ECC: what’s new and different? 3
12 years of learning
Significant evolution
Not revolution
The Project Manager in the NEC4 ECC: what’s new and different?
Agenda
The Project Manager in the NEC4 ECC: what’s new and different? 4
New and
changed options
Language
Detail
1-9
1 2
3
5
6
4
NEC4 ECC
The Project Manager in the NEC4 ECC: what’s new and different? 5
New and changed
ECC options
W1 & W2 – Seniors Reps. first
X8 Undertakings to Client and others
W3 – Dispute Avoidance Board
X9 Transfer of rights
‘collateral warranties’
NEC4 ECC
The Project Manager in the NEC4 ECC: what’s new and different? 6
New and changed
ECC options
Information Model
Information Model Requirements
Information Execution Plan
X10 Information modelling
X4 Ultimate holding company guarantee
IP and license to use
Retention of docs
PII
X11 Termination by the Client
Contractor can propose changes to Client’s Scope to reduce OPEX
Do a deal on Scope, Prices, Completion Date
X22 ECI X21 Whole life cost
Due skill and care
X15 The Contractor’s design
NEC4 ECC
The Project Manager in the NEC4 ECC: what’s new and different? 7
Language
X12 now ‘Multiparty
collaboration’
Risk Register (RIP) is ‘Early Warning Register’
Scope
‘Employer’ is ‘Client’
‘Employer’s risk’ is ‘Client’s liability’
10.1 split in two
The Project Manager in the NEC4 ECC: what’s new and different? 8
Core clauses
Detail
1-9
1 2
3
5
6
4
The Project Manager in the NEC4 ECC: what’s new and different? 9
Core clauses
General • Prompt for Scope to specify
‘communication system’ • PM prepares first Early Warning Register • ‘early warning meetings’ at ‘no longer
interval’ than in Contract Data • Contractor’s proposals to change Client’s
Scope • Options C and D – Prices not reduced – as
ECC3 • Options A and B – if accepted Contractor gets
the ‘value engineering percentage’ of saving
1
1
The Project Manager in the NEC4 ECC: what’s new and different? 10
Core clauses
The Contractor’s main responsibilities • Subcontracts – detailed improvements
2
2
The Project Manager in the NEC4 ECC: what’s new and different? 11
Core clauses
Time • Programme in form as in Scope • No response to a submitted programme
in two weeks? • Contractor may prompt • Another week of silence? • Programme treated as accepted
• Acceleration • Either can propose • Three weeks for quotation and PM’s
response
3 3
The Project Manager in the NEC4 ECC: what’s new and different? 12
Core clauses
Rebranded ‘Quality management’ • As PSC • Quality
o quality management system as requirements in Scope
o quality policy statement • For acceptance of PM
o quality plan • For acceptance of PM • Changes for acceptance of PM • PM may instruct C to correct
failures to comply
4 4
The Project Manager in the NEC4 ECC: what’s new and different? 13
Money
Payment • Contractor application for payment
required to get paid • Fee – no separate ‘subcontracted fee
percentage’ • Defined Cost – no exclusion of cost of
preparing compensation events (Options A and B)
5
5
The Project Manager in the NEC4 ECC: what’s new and different? 14
Money
Final assessment • By PM four weeks after Defects
Certificate • Contractor may prepare if PM has not
done so • ‘conclusive evidence’ of final amount due
– unless…….
5
5
The Project Manager in the NEC4 ECC: what’s new and different? 15
Money
Final assessment…. more • WI or W2
• referred to the Senior Representatives within 4 weeks
• On and up to Adjudicator if Senior Representatives have not agreed within 3 weeks
• On and up to tribunal within 4 weeks of Adjudicator’s decision
• W3 • On and up to Dispute Avoidance Board • On and up to tribunal within 4 weeks of
DAB’s recommendation
5
5
The Project Manager in the NEC4 ECC: what’s new and different? 16
Money
A and B ‘Short Schedule of Cost Components’ • People based on People Rates • Charge based on ‘percentage for people
overheads’ deleted • Payments to Subcontractors now allowed • Design and manufacture – no overhead
%
5
5
The Project Manager in the NEC4 ECC: what’s new and different? 17
Money
C,D,E Schedule of Cost Components • Just the one ‘Schedule of Cost
Components’ • Charge based on ‘percentage for
Working Areas overhead’ deleted • Payments to Subcontractors (now in SCC) • Design and manufacture – no overhead
%
5
5
The Project Manager in the NEC4 ECC: what’s new and different? 18
Money
C,D,E Finalisation of Defined Cost • Contractor notifies when ‘a part’ of
Defined Cost is finalised • PM responds within 13 weeks • Contractor responds to ‘ comments
within 4 weeks • PM accepts or corrects within 4 weeks • If PM misses a response time,
Contractor’s assessment treated as correct.
5
5
The Project Manager in the NEC4 ECC: what’s new and different? 19
Money
5
5
The Project Manager in the NEC4 ECC: what’s new and different? 20
Core clauses
Compensation events • Additional compensation events in
Contract Data part one • Proposed instructions given its own
clause • New CE if quotation for proposed
instruction not accepted • ‘dividing date’ between ‘actual’ and
‘forecast’ Defined Cost • delays assessed using Accepted
Programme ‘current at the dividing date’
6
6
Detail
1-9
NEC4 ECC
21
New and
changed options
Language
1 2
3
5
6
4
The Project Manager in the NEC4 ECC: what’s new and different?
Poll……..Questions?
NEC Users’ Group Annual Seminar 2017 22 June - County Hall, London
Official launch event of NEC4
Attendees will receive a copy of the NEC4 ECC
10% discount
webinar10
24
Next NEC4 webinar
NEC4 Alliance Contract: Increasing collaboration and integration 28 June 2017 – 13:00 BST
neccontract.com/alliancewebinar
Peter Higgins Chair of the NEC4 Contract Board
Ian Heaphy NEC4 Contract Board
The Project Manager in the NEC4 ECC: what’s new and different?
NEC4 training
NEC4: Introduction to the Engineering
and Construction
Contract (ECC)
NEC4: Introduction to
the Design, Build and Operate
Contract (DBO)
NEC4: Introduction to
the Term Service Contract (TSC)
London 27 June 2017 03 July 2017
London 28 June 2017
London 29 June 2017
neccontract.com/nec4training
Pre-order NEC4
Pre-order your hard-copies of NEC4 ahead of launch guaranteeing you’ll have it dispatched following the release.
There’s also a special 10% discount for pre-orders.
Promocode
NEC4PRE
neccontract.com The Project Manager in the NEC4 ECC: what’s new and different?
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+44 (0)20 7665 2446
One Great George Street, London SW1P 3AA
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Delivering real value
