Advantages & Disadvantages For Specialist Contractors In .

3y ago
17 Views
2 Downloads
377.24 KB
23 Pages
Last View : 1m ago
Last Download : 2m ago
Upload by : Maxton Kershaw
Transcription

JCT & NEC3Advantages & Disadvantagesfor Specialist Contractorsin an Irish ContextProfessor Rudi Klein, BarristerCEO, SEC GroupPresident NEC Users’ Group (one timemember of JCT Drafting Sub-Committee)1

COVERAGE OF JCT & NEC3JCT:UK but Scottish Building ContractsCommittee “kilts” JCTNEC:Intended for UK and internationaluse, civil and common lawjurisdictions (has choice ofgoverning law and language).2

JCT/NEC3: DRAFTINGAPPROACHES Complex since JCT attempts tocover every eventuality –clogged with procedural rules.JCT: Much use of open-ended words(e.g. “reasonable”, “fair”). Focuses on consequences ofbreach and liability.3

JCT/NEC3: DRAFTINGAPPROACHES (2)NEC: Accessible; use of everydayEnglish but terminologysometimes different (e.g.“compensation events”). More precise. Focuses on pro-active riskmanagement rather than on whathappens when things go wrong.4

STRUCTURE OF JCT & NEC3 The mainstream JCT contracts and sub-contracts arelump sum contracts – where contractor (C) and subcontractor (S/C) carries pricing risk (contract price canonly be changed if works varied or delayed by E). TheStandard Building Contract 2011 has With Quantities,Without quantities and Approximate Quantities versions. NEC3 has core clauses (suitable for most procurementroutes) and 6 pricing options (priced contracts withactivity schedules/Bs of Qs, target cost contracts withactivity schemes/Bs of Qs, cost reimbursable contractand management contract).NB. Sub-contracts may not necessarily mirror maincontract pricing option.5

MUTUAL TRUST AND COOPERATION An overriding obligation in NEC is that the parties(including the PM) must act in a spirit of mutual trustand cooperation. The meaning of this has been a hotly debated issue butthe obligation is regarded as essential in promoting thecollaborative behaviours that are at the heart of NEC. Whilst this obligation is unlikely to override the expressterms of the contract it will impinge upon dishonestconduct (e.g. giving spurious reasons for denyingpayment).6

RISK MANAGEMENT UNDERJCT & NEC3 “Risk” not expressly referred to in traditional JCTcontracts; hidden within the language ofobligations and indemnities. JCT permeatedwith “what if” clauses – if A does not do B, X willhappen. Managing risk collaboratively with all parties –including sub-contractors – is the hallmark ofNEC.7

JCT & NEC3: SUB-CONTRACTS JCT produces domestic sub-contracts for all its main contractforms but their use is not mandated under the main contract.NB. JCT nominated sub-contracts are no longer available. JCT has recently introduced optional provisions enablingemployer (E) to name individual specialist as domestic subcontractors for specified parts of the works (specialist can bepre-named in Contract Particulars or post-named in aninstruction for expenditure of a provisional sum). Under NEC C cannot appoint a S/C until the PM has acceptedthe S/C; NEC sub-contract is not mandated but proposed subcontract conditions must be accepted by PM (unless they arethe NEC 3 Sub-Contract).8

JCT & NEC3: EMPLOYERREPRESENTATIVEJCT:Architect (A) contract administrator (CA) –“administers” the contract (e.g. certifiessums due, issues instructions).NB. If A is also the CA there is risk ofconflict of interest.NEC:Project manager (PM) – more active role inclosely working with contractor to managerisk.NB. PM has role in selection of subcontractors.9

SCOPE OF WORK - JCT Lack of definition of scope of works generates moredisputes than any other single factor. Quantity and quality of works under JCT forms aredefined in Bs of Qs, specifications or schedules. Where C is expected to carry out design the JCT D&Bcontract/Design Portion Supplement should be used.10

SCOPE OF WORK – JCT (2) Where quantity/quality cannot be fully defined at outsetJCT enables the use of defined/undefined provisionalsums. Defined provisional sums require that C has certaininformation about the content of the work involved butwork has not been fully designed (C makes allowancefor this in pricing prelims, programming and planning). C is not expected to make any allowance in his tenderfor undefined provisional sums.11

SCOPE OF WORK – NEC3 The Contract Data/Sub-Contract Data (which lists projectspecific requirements) includes a section entitled WorksInformation: this must precisely define the scope of thework including any design – no separate designagreements. Provisional sums are not allowed in NEC. Completion occurs when the works as defined in theWorks Information are complete; practical completionunder JCT is more subjective.12

TIME & COST MANAGEMENT - JCT The Contract Particulars should indicate start andcompletion dates and whether sectional completion isrequired. A/CA values variations according to the valuation rules inthe contract (there is an option for C to provide aquotation to deal with both the time and costconsequences of a variation). A/CA may grant a reasonable extension of time if arelevant event has occurred; where C default is thecause of delay there is provision for LADs.13

TIME & COSTMANAGEMENT – NEC3 In addition to start and completion dates and sectionalcompletion option NEC also has provision for key dates(e.g. for completion of certain elements of the workssuch as lift installation). The programme is the key management tool in NEC – ithas to be kept up to date and must be submitted to thePM for acceptance. Whilst there is an option for LADs there is also an optionof a bonus for early completion.14

TIME & COSTMANAGEMENT – NEC3 (2) The programme is an element within a managementframework involving early warning (by both PM and C) ofmatters that could affect time, cost and quality. An early warning notice is then followed by a riskreduction meeting where both sides focus on solutionsto minimise impact or time and cost. Compensation events giving rise to a claim from C aredealt with by the PM and C agreeing quotations dealingwith both time and cost.15

JCT STANDARD BUILDING SUBCONTRACT 2011 E has no influence over the selection of the sub-contractoror the sub-contract terms; use of the JCT sub-contract isentirely a matter for the C. The exception is the recently-introduced named subcontractor option which prevents C from using his ownterms. There are 2 sub-contract pricing options – lump sum andre-measurement. Not suitable for design; a separate sub-contract isavailable. The C and S/C are to work in “a co-operative andcollaborative manner” but there is an option to delete this.16

JCT STANDARD BUILDING SUBCONTRACT 2011 (2) The S/C’s primary obligation is to carry out and completehis works “in a proper and workmanlike manner, incompliance with the Sub-Contract Documents .and inconformity with [the] reasonable requirements of theContractor ” The Sub-Contract Particulars helpfully lists the elementsof the Sub-Contract Works and the extent of theirincorporation into the Main Contract Works to beregarded as practically complete. Retention bonds are an option to be agreed.17

THE NEC 3 SUB-CONTRACT The NEC Sub-Contract – like most standard subcontracts – is “back to back” with the Main Contract. But the Sub-Contract is self – contained; it doesn’t referback to the Main Contract (although this is possible inthe Works Information). The Sub-Contract also has the same structure of theMain Contract with core chances, main options clauses,and secondary option clauses and the Sub-ContractData.NB All sub-contracts (including bespoke subcontracts must require the parties to act in a spirit of“mutual trust and collaboration”.18

THE NEC 3 SUB-CONTRACT PRICINGOPTIONS & SECONDARY OPTIONS Main option clauses A & B (lump sum options), C & D(target cost options)and E (cost reimbursable option). The C is not bound to reflect his pricing option in thesub-contract; he is generally keen to use the lump sumoptions. The C is free to choose sub-contract secondary options(eg. Option X16 – retentions – may not apply to the maincontract but could apply to the sub-contract). The S/C’s primary obligation is to deliver his works inaccordance with the Works Information.19

REVIEW OF PUBLIC WORKS CONTRACTUnderlying Concerns Lack of identification of risk and risk management“Proper risk management is the key to successfuldelivery of building projects” (para. 3.2.1). Uncertainty in time and cost outcomes. Focus on price – not value. Lack of visibility over value of supply chain contribution. Little co-operation between parties.20

SOME OBSERVATIONS ONINTERIM RECOMMENDATIONS Bills of quantities to be primary pricing reference foremployer – designated contracts. Still a focus on price. Assume everything will have been designedbeforehand. What about building performance outcomes? MEAT Directly tendering key specialist works packages. This is a positive recommendation. How early will the specialist be involved?21

SOME OBSERVATIONS ON INTERIMRECOMMENDATIONS (2) Review of dispute resolution procedures to enableengagement between parties at senior managementlevel. Introduction of standing dispute convenor for contractsover 10m – will this apply to disputes in supply chain? Aim is to reduce costs incurred by parties whendisputes arise but NEC risk management process couldavoid/minimise disputes.22

LOOKING AHEAD Medium – term strategy is to consider other constructioncontracts. Need to move away from pre-occupation with lump sumprescriptive requirements that focus on establishingblame, penalty and risk transfer. NEC focussed on collaborative risk management thatseeks early solutions rather than end of contract fault –finding. Government could be encouraged to pilot NEC to testwhether it represents better value for clients and supplychain. BUT procurement strategies – not contracts – should bethe overriding concern.23

SCOPE OF WORK - JCT Lack of definition of scope of works generates more disputes than any other single factor. Quantity and quality of works under JCT forms are defined in Bs of Qs, specifications or schedules. Where C is expected to carry out design the JCT D&B contract/Design Portion Supplement should be used. 10

Related Documents:

Bruksanvisning för bilstereo . Bruksanvisning for bilstereo . Instrukcja obsługi samochodowego odtwarzacza stereo . Operating Instructions for Car Stereo . 610-104 . SV . Bruksanvisning i original

10 tips och tricks för att lyckas med ert sap-projekt 20 SAPSANYTT 2/2015 De flesta projektledare känner säkert till Cobb’s paradox. Martin Cobb verkade som CIO för sekretariatet för Treasury Board of Canada 1995 då han ställde frågan

service i Norge och Finland drivs inom ramen för ett enskilt företag (NRK. 1 och Yleisradio), fin ns det i Sverige tre: Ett för tv (Sveriges Television , SVT ), ett för radio (Sveriges Radio , SR ) och ett för utbildnings program (Sveriges Utbildningsradio, UR, vilket till följd av sin begränsade storlek inte återfinns bland de 25 största

Hotell För hotell anges de tre klasserna A/B, C och D. Det betyder att den "normala" standarden C är acceptabel men att motiven för en högre standard är starka. Ljudklass C motsvarar de tidigare normkraven för hotell, ljudklass A/B motsvarar kraven för moderna hotell med hög standard och ljudklass D kan användas vid

LÄS NOGGRANT FÖLJANDE VILLKOR FÖR APPLE DEVELOPER PROGRAM LICENCE . Apple Developer Program License Agreement Syfte Du vill använda Apple-mjukvara (enligt definitionen nedan) för att utveckla en eller flera Applikationer (enligt definitionen nedan) för Apple-märkta produkter. . Applikationer som utvecklas för iOS-produkter, Apple .

238160 Roofing Contractors . 238170 Siding Contractors . 238190 Other Foundation, Structure, and Building Exterior Contractors . 238210 Electrical Contractors and Other Wiring Installation Contractors . 238220 Plumbing, Heating, and Air-Conditioning Contractors . 238290 Other Building Equipment Contractors . 238310 Drywall and Insulation .

och krav. Maskinerna skriver ut upp till fyra tum breda etiketter med direkt termoteknik och termotransferteknik och är lämpliga för en lång rad användningsområden på vertikala marknader. TD-seriens professionella etikettskrivare för . skrivbordet. Brothers nya avancerade 4-tums etikettskrivare för skrivbordet är effektiva och enkla att

Den kanadensiska språkvetaren Jim Cummins har visat i sin forskning från år 1979 att det kan ta 1 till 3 år för att lära sig ett vardagsspråk och mellan 5 till 7 år för att behärska ett akademiskt språk.4 Han införde två begrepp för att beskriva elevernas språkliga kompetens: BI