ECC High Level User Guide
Contents
1. SOLDIRDI DIDID MELT i ECC High Level User Guide Introduction This overview is intended to be a quick reference guide as to where you will find a particular subject matter within the ECC contract This guide focuses on the main clauses that will be commonly be used and is based upon an un amended contract Any Z clause amendments would have to be taken into account for an individual project as it could delete or amend any of the original contract clauses Sections 1 8 are the core clauses for every ECC option A F with Option specific clauses start on page 4 Section 1 General Reminder that you have to administer the contract 10 1 Defined terms broadly in alphabetical order 11 2 Communications Everything has to be in a form that is read copied recorded 13 1 Responses within period for reply or as per contract 13 3 May ask for an extension for a period of reply 13 4 Any notification has to be separate from any other communication 13 7 Project Manager Supervisor Project Manager acceptance not transfer liability away from Contactor 14 1 Project Manager Supervisor must formally delegate actions under 13 7 14 2 Project Manager can issue instructions to change the WI 14 3 Working Area Contractor can propose an area added to Working Area 15 1 Early Warnings Reasons for which an early warning should be raised 16 1 Instruct the other party to attend a Risk Reduction meeting 16 2 Actions expected of all parties at a risk reductio2. PM can extend period for Contractor to produce quote 62 5 Contractors quote deemed accepted if no response to notification 62 6 Assessment Basis of quotes required in relation to actual forecast defined cost 63 1 Definition of contractual movement in Completion Date 63 3 PM may assess as though early warning had been given but wasn t 63 5 Allocation of risk within a compensation event quotation 63 6 Requires Contractor to act promptly and competently to a CE 63 7 How ambiguities will be assessed in terms of a compensation event 63 8 Project Managers Assessments Reasons under which PM can make his own assessment of a CE 64 1 2 PM to notify Contractor of his own assessment of a CE 64 3 Deemed acceptance if PM no response to a notification of no assessment 64 4 Implementing Implemented when CE accepted assessed deemed accepted 65 1 CE quote is not changed if later found to be wrong 65 2 Prices changed following agreement of a compensation event 65 3 Page 3 of 6 ECC High Level User Guide Section 7 Title Where title of materials transfers from Contractor to Employer Supervisor marks materials outside the Working Area Contractor has no title to anything found existing on the site other than That stated in Works Information Section 8 Risks and Insurance All employers risks By difference Contractors risks Insurance cover details Insurance policies and who needs to provide what to whom Additional Option A clauses Identifie
3. programme for acceptance Requirement for PM to accept a programme or not accept Revising the Programme List of what should be shown on a revised programme Intervals for programme submissionsto Employer Acceleration Project Manager can request a quotation for an acceleration Section 4 Testing and Defects Tests and Inspections Requirement to carry out tests and inspections as per works information Requirement to notify Supervisor prior to tests being carried out Requirement for Supervisor to carry out test inspection Before delivery Requirement to carry out tests prior to delivery where required Searching notifying defects Supervisor can instruct Contractor to search for a defect Requirement Supervisor Contractor to make each other aware of defects Correcting defects Requirement to correct a defect within correction period Supervisor to issue defects certificate at end of defects date Accepting defects Can propose for a defect to be not corrected and WI changed accordingly Uncorrected defects PM can rectify a defect and back charge a Contractor if not carried out PIUMTUTUMTD EA MELS 26 2 26 2 26 3 30 1 30 2 31 1 31 2 31 3 32 1 32 2 36 1 40 1 40 3 40 5 41 1 42 1 42 2 43 2 43 3 44 1 45 1 Page 2 of 6 PIUMTUTUMTD EA MELS ECC High Level User Guide Section 5 Payment Assessing Amount Due Project Manager to assess the amount due at each assessment date 50 1 Definition of the amoun
4. 4 of 6 ECC High Level User Guide Additional Option B clauses cont Any ambiguity between B of Q and another contract document that Results in a CE Contractor deemed to have taken B of Q as correct Prices contract sum can be reduced with a compensation event Bill of Quantities to be updated in line with compensation events Additional Option C clauses Defined terms Defined cost is subcontracted costs and elements in accordance with schedule of cost components List of disallowed costs that Contractor will not get paid for Price for Work Done to Date is total of Defined Cost actual cost Providing the Works Contractor provides forecast of total Defined cost at contract intervals Subcontracting Requirement to submit contract data for proposed subcontracts Programme Requirement for activity schedule to relate to items on programme Defined cost Requirement for Contractor to keep records Contractors Share PM assesses Contractors share of the Prices and actual defined cost Provisional assessment of Contractors share following Completion Final assessment of Contractors share following Completion Activity Schedule Makes point activity schedule is not Works Information Activity schedule can be changed by agreement Reasons for not accepting a revised Activity Schedule Compensation events Total of Prices are not reduced if Contractor idea to reduce defined cost By agreement may use shorter schedule of cost components to asse
5. acting Requirement to submit contract data for proposed subcontracts Defined cost Requirement for Contractor to keep records 11 2 24 11 2 26 11 2 29 11 2 29 20 4 26 4 52 2 Page 6 of 6
6. d and defined terms Use of shorter schedule of cost components and cost of preparing quote is excluded from cost of compensation events Price for Work Done to Date is completed items on the activity schedule Programme Requirement for activity schedule to relate to items on programme Activity Schedule Makes the point activity schedule is not Works Information Activity schedule can be changed by agreement Reasons for not accepting a revised Activity Schedule Compensation Events Prices contract sum can be reduced with a compensation event Activity Schedule to be updated in line with compensation events Additional Option B clauses Identified and defined terms Use of shorter schedule of cost components and cost of preparing quote is excluded from cost of compensation events Price for Work Done to Date is completed quantities at bill rates and proportion of any lump sums Bill of Quantities Makes the point activity schedule is not Works Information Compensation Events Sets the threshold at which a change in quantity is assessed as a compensation event defined cost rather than using bill rates If any change in quantity affects Completion then it is a CE Any errors in the B of Q that are departure from standard method of measurement will be a compensation event PIUMTUTUMTD EA MELS 70 1 2 71 1 73 1 80 1 81 1 84 85 11 2 20 11 2 27 31 4 54 1 54 2 54 3 63 10 63 12 11 2 22 11 2 28 55 1 60 4 60 5 60 6 Page
7. n meeting 16 3 Updating of the Risk Register 16 4 Ambiguities Raising of and resolving of an ambiguity 17 1 Contractors entitlement following resolution of an ambiguity 17 2 Section 2 Contractors Responsibilities Providing the Works Reminder of Contractors obligations as to Provide the Works 20 1 Design Reference back that you only design what WI says you are to design 21 1 Requirement for Contractor to submit design and PM to accept 21 2 Design submission can be in parts if suitable 21 3 People Need to provide Key People stated in CD2 or suitable replacement 24 1 PM can instruct the removal any person under his control 24 2 Working with Employer and Others Requirement for Contractor to work with Others as per instruction or WI 25 1 Requirement to meet certain condition by a Key Date in CD1 25 3 Page 1 of 6 ECC High Level User Guide Section 2 Contractors Responsibilities cont Subcontracting Requirement to submit proposed subcontractor for acceptance by PM prior to appointing that subcontractor Reasons under which PM could not accept a subcontractor Also have to submit contract terms for subcontractor if not using an NEC contract Section 3 Programme Starting Date Completion Date Contractor does not start work on site until the first access date Project Manager certifies date of Completion The programme Requirement for Contractor to submit first programme for acceptance List of what is required to be shown on a
8. nother contract document that Results in a CE Contractor deemed to have taken B of Q as correct Prices contract sum can be reduced with a compensation event Bill of Quantities to be updated in line with compensation events Additional Option E clauses Defined terms Defined cost is subcontracted costs and elements in accordance with schedule of cost components List of disallowed costs that Contractor will not get paid for Price for Work Done to Date is total of Defined Cost actual cost Contract sum is simply defined cost plus the fee Providing the Works Contractor provides forecast of total Defined cost at contract intervals Subcontracting Requirement to submit contract data for proposed subcontracts Defined cost Requirement for Contractor to keep records Compensation events SOLDIRDI DIDID MELT i 53 1 2 53 3 53 3 55 1 60 4 60 5 60 6 60 7 63 11 63 13 11 2 23 11 2 25 11 2 29 11 2 29 20 4 26 4 52 2 By agreement may use shorter schedule of cost components to assess a CE 63 15 Additional Option F clauses Defined terms Defined cost is subcontracted costs and elements in accordance with schedule of cost components List of disallowed costs that Contractor will not get paid for Price for Work Done to Date is total of Defined Cost actual cost Contract sum is simply defined cost plus the fee Providing the Works Contractor provides forecast of total Defined cost at contract intervals Subcontr
9. ss a CE Additional Option D clauses Identified and defined terms Defined cost is subcontracted costs and elements in accordance with schedule of cost components List of disallowed costs that Contractor will not get paid for Price for Work Done to Date is total of Defined Cost actual cost Providing the Works Contractor provides forecast of total Defined cost at contract intervals Subcontracting Requirement to submit contract data for proposed subcontracts Defined cost Requirement for Contractor to keep records Va inlet h Lied 60 7 63 10 63 12 11 2 23 11 2 25 11 2 29 20 4 26 4 31 4 52 2 53 1 2 53 3 53 3 54 1 54 2 54 3 63 11 63 15 11 2 23 11 2 25 11 2 29 20 4 26 4 52 2 Page 5 of 6 ECC High Level User Guide Additional Option D clauses cont Contractors Share PM assesses Contractors share of the Prices and actual defined cost Provisional assessment of Contractors share following Completion Final assessment of Contractors share following Completion Bill of Quantities Makes the point activity schedule is not Works Information Compensation Events Sets the threshold at which a change in quantity is assessed as a compensation event defined cost rather than using bill rates If any change in quantity affects Completion then it is a CE Any errors in the B of Q that are departure from standard method of measurement will be a compensation event Any ambiguity between B of Q and a
10. t due 50 2 Fact that 25 PWDD can be withheld if no 1 accepted programme 50 3 Reminder that PM has to assess even if no Contractor submission 50 4 Payment Project Manager to certify payment within 7 days of assessment date 51 1 Confirmation of period within which payment should be made 51 2 Interest recoverable on items corrected on a later certificate 51 3 Defined Cost Any Contractors costs not identified in Defined Cost are in the Fee 52 1 Section 6 Compensation Events General List of what events would be considered as compensation events 60 1 Requirement to mitigate the effects of a compensation event 60 3 Notifying PM can notify and request a quotation which Contractor puts into effect 61 1 PM can request a quotation for a proposed quotation 61 2 Contractor can notify a CE and can be time barred after a period 61 3 PM to accept or not accept if Contractor has notified It includes a 61 4 deemed acceptance loop if the PM does not respond within period PM can advise that an early warning could have been given which wasn t 61 5 PM can state assumptions for Contractor to base the quote upon 61 6 No compensation events can be issued after Completion 61 7 Quotation PM can request alternative quotations for dealing with a CE 62 1 Contractor to provide a quote and alterations to programme where relevant 62 2 Contractor to provide quote within 3 weeks PM response within 2 weeks 62 3 PM can request a revised quote 62 4
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