NEC3: Engineering and Construction Contract Flow Charts

To enable users to understand the operation of the Engineering and Construction Contract, this book contains flow charts which set out the procedural logic of the 75 clauses that can be presented with benefit by flow charting.

OGC endorsement of NEC3;

Construction Clients' Board endorsement of NEC3

The Construction Clients' Board (formerly Public Sector Clients' Forum) recommends that public sector organisations use the NEC3 contracts when procuring construction.

Standardising use of this comprehensive suite of contracts should help to deliver efficiencies across the public sector and promote behaviours in line with the principles of Achieving Excellence in Construction.

Contents

Flow charts

• 13 Communications
• 14 The Project Manager and the Supervisor
• 15 Adding to the Working Areas
• 16 Early warning
• 17 Ambiguities and inconsistencies
• 18 Illegal and impossible requirements
• 19 Prevention
• 20 Providing the Works
• 21 The Contractor’s design
• 22 Using the Contractor’s design
• 23 Design of Equipment
• 24 People
• 25 Working with the Employer and Others
• 26 Subcontracting
• 27 Other (Contractor) responsibilities
• 30 Starting, Completion and Key Dates
• 31 The programme
• 32 Revising the programme
• 33 Access to and use of the Site
• 34 Instruction to stop or not to start work
• 35 Take over
• 36 Acceleration
• 40 Tests and inspections
• 41 Testing and inspection before delivery
• 42 Searching for and notifying Defects
• 43 Correcting Defects
• 44 Accepting Defects
• 45 Uncorrected Defects
• 50 Assessing the amount due S
• 51 Payment
• 52 Defined Cost
• 53 The Contractor’s share (Option C and D)
• 54 The Activity Schedule (Option A and C)
• 55 The Bill of Quantities (Option B and D)
• 60 Compensation events
• 61 Notifying compensation events
• 62 Quotations for compensation events
• 63 Assessing compensation events
• 64 The Project Manager’s assessments
• 65 Implementing compensation events
• 70 The Employer’s title to Plant and Materials
• 71 Marking Equipment, Plant and Materials outside the Working Areas
• 72 Removing Equipment
• 73 Objects and materials within the Site
• 80 Employer’s risks
• 81 Contractor’s risk
• 82 Repairs
• 83 Indemnity
• 84 Insurance cover
• 85 Insurance policies
• 86 If the Contractor does not insure
• 87 Insurance by the Employer
• 90 Termination
• 91 Reasons for termination
• 92 Procedures on termination
• 93 Payment on termination
• W1 Dispute resolution (used unless Option Y(UK)2 applies)
• W2 Dispute resolution (used when Option Y(UK)2 applies)
• X1 Price adjustment for inflation (used only with Options A, B, C and D)
• X2 Changes in the law
• X3 Multiple currencies (used only with Options A and B)
• X4 Parent company guarantee
• X5 Sectional Completion
• X6 Bonus for early Completion
• X7 Delay damages
• X12 Partnering
• X13 Performance bond
• X14 Advanced payment to the Contractor
• X15 Limitation of the Contractor’s liability for his design to reasonable skill and care
• X16 Retention (not used with Option F)
X17 Low performance damages
• X18 Limitation of liability
• X20 Key Performance Indicators (not used with Option X12)
• Y(UK)2 The Housing Grants, Construction and Regeneration
Act 1996
• Y(UK)3 The Contracts (Rights of Third Parties) Act 1999

OGC advises public sector procurers that the form of contract used has to be selected according to the objectives of the project, aiming to satisfy the Achieving Excellence in Construction (AEC) principles. This edition of the NEC (NEC3) complies fully with the AEC principles. OGC recommends the use of NEC3 by public sector construction procurers on their construction projects