5626 BESG Construction Contracts

Slides:



Advertisements
Similar presentations
A Joint Code of Practice Objectives and Summary Presentation
Advertisements

VISION & MISSION OF KeNHA VISION : Quality, safe and adequate National Road Network. MISSION : Provide quality National Road Network for sustainable social.
Presentation by: Tshewang Gyeltshen. The SBD is prepared in line with the PRR 2009 & SBD Large Works General principals of procurement to be applied prescribed.
NEC - Engineering and Construction Contract (ECC)
LECTURE 7 CLAIMS RELATED TO SUB-CONTRACTORS
John Boon ZUT November Procurement Systems The organisation of the interaction between the purchaser of a new building and the suppliers of goods.
Subcontractors بسم الله الرحمن الرحيم Islamic university in Gaza Collage of Engineering Postgraduate program Construction Management Prepared by: Eng.
Completion Outstanding work and Remedying Defects In order that the Works and Contractor's Documents, and each Section, shall be in the condition required.
Time for a new standard - AS General Conditions of Contract
ISLAMIC UNIVERSITY OF GAZA FACULTY OF ENGINEERING CIVIL ENGINEERING DEPARTMENT 20. Claim, Disputes and Arbitration [Construction Contract Administration]
ISLAMIC UNIVERSITY OF GAZA FACULTY OF ENGINEERING CIVIL ENGINEERING DEPARTMENT Defects Liability [Construction Contract Administration] Chapter 11.
ZHRC/HTI Financial Management Training Session 8: Annual Procurement Plans, Procurement Contracts, and Contract Management.
Insurance provisions under JCT 1998 and JCT Standard Building Contract 2005 Brian Lewis – QBE CAR.
CIVL202 Construction Engineering I Tutorial 2 T1Mon11:00 – 11:50 T2Wed09:00 – 09:50.
REGULATORY LEGAL AND CONTRACTUAL ASPECTS OF PPP IN WATER AJAY RAGHAVAN Counsel Training Workshop, Bhopal, February 2009.
CONTROLLING TIME. ”Remember that time is money” Benjamin Franklin 1748.
Compensation events and claims Presented by Prof. Khem Dallakoti.
CONSTRUCTION CONTRACTS – MASTER CHART
1 18 International Payments and Related Issues. Summary: 18.1 Payment Currency Clauses Mobilization and Progress Payments Insurance Issues.
CS-411W VII – Resource Planning and Allocation – Contracts and Subcontracts.
LECTURE 4 FORMULATION & PRESENTATION OF MONETARY CLAIMS  Recovery of Loss / Expenses / Damages  Notice of intention to claim  Particular and further.
Project Closeout Module #14 Prepared by Dr. Randy R. Rapp July 2005.
The New Engineering Contract - particular features and usage
April 19, 2001L&L/MDI1 Impact of Force Majeure On Contracts Presentation by Mohit Saraf Partner Luthra & Luthra Law Offices.
Building Capacity of SMEs for Participation in Public Procurement Draft Presentation for Training of Trainers June 2014.
Procurement and Contract Management Training
Types of Contracts and Guidelines for their choice
Treatment of Key Risks under EPC Contracts
Risk and Insurance Part 5 Managing Growth in the Small Business.
Terminating Contracts and CLINS
Introductions and aims of today’s briefing
Profession Practices (ECIV-5105)
Introduction to FIDIC - Manuals
Administration of a FIDIC Contract - Project Control
Content of Tender Dossier - Instructions to Tenderers - Tenders
SESSION 11 – SPECIALIST TERMS
Information Security Professionals
Int’l Sales Contract Elements
Particular Conditions of Contract & Appendix to Tender
Administration of a FIDIC Contract - Pre-Contract Phase -
Drawings Introduction to FIDIC - Drawings -.
INTERCONNECTION GUIDELINES
How to Work Through the PTE Form with Your Client
Int’l Sales Contract Elements
EPA SUBCONTRACT TEMPLATE Overview September 2017
Extension of time and how it is granted to a contractor (Referencing JCT 2005)
Types of contract selection based upon following:
Particular Conditions of Contract & Appendix to Tender
Brian Bries, Area V.P.-Construction Practice Arthur J. Gallagher & Co.
Certificates JCT 11 SBC allows for 10 different kinds of certificates.
بسم الله الرحمن الرحيم Tests on Completion Dr. Kamaleen Sha’ath
NEC 3 Engineering and Construction Contract (ECC) & Principles of Law
Contractual Arrangement
BIDDING DOCUMENTS AND MAIN FEATURES
Dennis Li - HKCIC Lecturer
Dennis Li - HKCIC Lecturer
Dennis Li - HKCIC Lecturer
Dennis Li - HKCIC Lecturer
Dennis Li - HKCIC Lecturer
COST OF THE WORK: Tricks and Traps to Avoid in Contract Drafting
Public works contract Clauses 10.5 & 11.5 Explored
Construction Contracts
Construction Contract Administration
Order 600/2017 – The issue and the potential exits
Factors Affecting Bid/No Bid Decision Making IN The West Bank
Directed Change Constructive Change
Client Process Pack.
TOTAL COST CONTROL ON CONSTRUCTION PROJECTS
GBRs - Ground models you can just make up ?
Presentation transcript:

5626 BESG Construction Contracts Faculty of Engineering and Technology Department of Built Environment 5626 BESG Construction Contracts

Lecture NEC – An introduction

In this session… NEC Contract Main features of NEC Contract Why is it popular?

Learning outcomes At the end of this session you should be able to: Understand the Basic Features of NEC contract

1. NEC Flexibility - primary options give choice of pricing mechanism (lump sum to cost plus) - secondary options allow specific employer policies to be addressed Clarity - conditions expressed more simply and clearly; non-legalistic language Good Management - emphasis on communications, co-operation and programming – from outset.

Different types Engineering and Construction Contract (ECC) Engineering and Construction Subcontract (ECS) Engineering and Construction Short Contract (ECSC) Engineering and Construction Short Sub-contract (ECSS) Professional Services Contract (PSC) • Adjudicator’s Contract (AC) Term Service Contract (TSC) Framework Contract (FC)

Engineering and Construction Contract (ECC) Suitable for any construction based contract between an Employer and a Contractor. It is intended to be suitable for any sector of the industry, including civil, building, nuclear, oil & gas, etc.

Engineering and Construction Subcontract Contract (ECS) Very similar in detail and complexity of contractual requirements to the ECC contract above, but allows the contractor to sub-let the project to a subcontractor imposing most of the clauses that he has within his headline contract. There is very little difference between the ECC and the ECS, other than the names of the parties are changed (contractor and subcontractor) and some of the timescales for contractual responses are altered to take into account the timescales required in the ECC contract.

Engineering and Construction Short Contract (ECSC) This is an abbreviated version of the ECC contract and most suitable when there is considered “low risk” (not necessarily low value) on a project with little change expected. This contract is still between the employer and contractor but does not use all of the processes of the ECC making it simpler and easier to manage and administer.

Engineering and Construction Short Subcontract (ECSS) Allows the contractor to sub-let a contract down the line to a subcontractor on a low risk project when his contract with the employer is an ECSC.

Professional Services Contract (PSC) This contract is for anyone providing a service, rather than doing any physical construction works. Designers are the most obvious party that fit into this category. Whilst they are producing a design for an employer or contractor, they would sign up and follow the clauses within the PSC. Most of the clauses within this contract are the same as that in the main ECC contract, so that all contractors, designers and subcontractors have pretty much the same obligations and processes to follow as each other.

Adjudicator’s Contract (AC) If there is a dispute between the parties on a project then the Adjudicator will follow the clauses within this contract in order to come to a decision.

Term Service Contract (TSC) For parties on a project that is operational or maintenance based, e.g. maintaining highway signage, where the contract is to ensure that a certain standard is maintained. This contract is not generally used for constructing new works, but can include some amount of betterment. There is also a “Term Service Short Contract” where the project is a relatively low risk project and is an abbreviated version of the main TSC.

Framework Contract (FC) Parties enter into a “framework” of which work packages will then be let during the life of that framework. Any individual projects will then be awarded using one of the other contracts within the suite, meaning that the parties follow the headline clauses within the framework contract (which is a fairly slim contract) and then the individual clauses within the chosen contract for that package. Different work packages can be let using different contracts during the life of the framework.

Main Options A – Lump Sum with Activity Schedule B – Lump Sum with Bill of Quantities C – Target Cost with Activity Schedules D – Target Cost with Bill of Quantities E – Cost Reimbursable Contract F – Management Contract

Main Clauses 1.General 2. Contractor’s main responsibilities 3. Time 4. Testing and Defects 5. Payment 6. Compensation events 7. Title 8. Risks and insurance 9. Termination

Optional Clauses changes in the law sectional completion bonus for early completion delay damages advance payment to Contractor limitation of Contractor’s design liability retention low performance damages HGCRA 1996 / LDEDCA 2009 amendments to contract.

Who are involved? Employer & Contractor Project Manager & Supervisor Subcontractor(s) , Supplier(s) , Adjudicator , Others (anyone except the above)

What is Unique ? Project Manager Role: Collaborative way of working. Impartial – Employer’s agent but impartial Amount due, compensation event, Issue of Termination certificate. Employer has no contractual right to challenge the decision of project manager Early Warning Collaborative way of working.

Early Warning Clause 16 : Acknowledgement of the prevalence of risk. Spot, discuss, mitigate/avoid Notify Risk Reduction meeting Action plan Risk register update Review regularly

Early Warning The early warning process is a mechanism for both parties to identify potential problems to the project. The contract emphasises that both parties are obliged to notify the other as soon as they become aware of a matter that could affect time, cost or quality. Traditionally it is the Contractor that tends to raise more early warnings, largely because they are the ones doing the work and more likely to identify the issues first. However, the Project Manager should be equally motivated to give early warnings in order to maximise the time available to consider the problem with the Contractor, to increase the likelihood of finding the best solution to meet the Employers interests in a given situation.

Early Warning The Project Manager could for example raise an early warning if he feels the subcontractor is not performing in some specific way. Once notified, these are discussed at a “risk reduction” meeting, and the matters recorded onto a Risk Register. These matters are then subsequently discussed at each Risk Reduction meeting until they are closed out, with each meeting recording the current action/progress regarding each matter.

Compensation Event Compensation Event, Process and Time scale Fault based system tied with Comp. event.

Compensation Event If events occur during the course of the works that cause the completion of the works to be delayed then these may be compensation events. Compensation events will normally result in additional payment being made to the contractor and may result in adjustment of the completion date or key dates.

Compensation Event Specific identified compensation events include: Instructions to change the service Failure to provide access. Failure of the client to provide equipment, plant or materials. An instruction to halt, or delay the works. Work done by others. Conditions that could not reasonably have been foreseen. Exceptionally adverse weather (beyond one in ten year frequency). Force majeure (such as an epidemic or an 'act of God').

Further Reading https://www.fenwickelliott.com/sites/default/files/scl_d177_gould_jan15.pdf