=nec3 Flow charts for the Engineering and Construction Contract ‘This contract should be used for the appointment of a contractor for engineering and construction work, including any level of design responsiblity An NEC document eee eile A, June 2005 rao Africon (with amendments June 2006) 1 00 Tel. (O12) 477-2141 5 OGC endorsement of NEC3 (GC advises public sector procurers that the form of contract used has to be selected ‘according to the objectives of the project, aiming to satisty the ‘Achieving Excellence in Construction (REC) 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.NEC is a division of Thomas Telford Ltd, which is a wholly owned subsidiary of the institution of Civil Engineers (ICE), the owner and developer of the NEC. j i | ‘The NEC is a family of standard contracts, each of which has these | characteristics: | * Its use stimulates good management of the relationship between the two patties to the contract and, hence, of the work included in the contrect. + It'can be used in a wide variaty of commercial situations, for a wide | variety of types of work and in any location. * Iisa clear and simple document — using language and a structure which are straightforward and easily understood, NEC3 Engineering and Construction Contract is one of the NEC family and is consistent with all other NEC3 documents. Also available are the Engineering and Construction Contract Guidance Notes, Flow Charts and Options A, B, C, DE and F, ISBN (complete box set) 978 07277 3382 5 ISBN (this document) 978 07277 3367 2 ISBN (Engineering and Construction Contract) 978 07277 3359 7 i {SBN (Option A: Priced contract with activity schedule) 978 07277 33603 | ISBN (Option B: Priced contract with bill of quantities) 978 07277 3364.0 ISBN (Option C: Target contract with activity schedule) 978 07277 3362 7 ISBN (Option D: Target contract with bill of quantities) 978 07277 3363 4 ISBN (Option E: Cost reimbursable contract) 978 07277 3364 1 ISBN (Option F: Management contract) 978 07277 3365 8 | i First edition 1993 Second edition 1995, Reprinted 1996 Third edition June 2005 Reprinted with amendments 2007 Cover photo, Golden Jubilee Bridge, courtesy of City of Westminster 98765432 British Library Cataloguing in Publicetion Data for this publication is avaiable | from the British Library. © Copyright nec 2005 All rights, Including translation, reserved. Except as permitted by the Copyright, Designs and Patents Act 1988, no part of this publication may be reproduced, stored in a retrieval system or transmitted In any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the NEC Director, NEC, Thomas Telford Lid, 1 Heron Quay, London E14 4D. | Typeset by Academic + Technical, Bristol Printed and bound in Great Britain by Gell & Bain Limited, Glasgow, UK |CONTENTS Preface Abbreviations Legend Amendments Flow charts ‘The number of each flow chart is the same as the number of the clause in the NEC Engineering and Construction Contract to which it primarily relates. Communications The Project Manager and the Supervisor Adding to the Working Areas Early warning Ambiguities and inconsistencies tlegal and Impossible requirements Prevention Providing the Works The Contractor's design Using the Contractor's design Design of Equipment People Working with the Employer and Others ‘Subcontracting Other (Contractor) responsibilities Starting, Completion and Key Dates The programme Revising the programme Access to and use of the Site Instruction to stop or not to start work Take over Acceleration Tests and inspections Testing and inspection before delivery Searching for and notifying Defects Correcting Defects, Accepting Defects Uncorrected Defects Assessing the amount due Payment Defined Cost ‘The Contractor's share (Option C and D) The Activity Schedule (Option A and C) The Bill of Quantities (Option B and D) Compensation events Notifying compensation events Quotations for compensation events: Assessing compensation events The Project Manager's assessments implementing compensation events The Employer's tite to Plant and Materials Marking Equipment, Plant and Materials outside the Working Areas Removing Equipment Objects and materials within the Site Employer's risks Sheets 1 to 3 Sheets 1 and 2 Sheets 1 and 2 Sheets 1 and 2 Shests 1 and 2 Sheets 1 and 2 Sheets 1 and 2 Sheets 1 to 7 Sheets 1 and 2 Shests 1 and 2 Sheets 1 to 7 ‘Sheets 1 to 4 Sheets 1 and 2 Sheets 1 to 3 Sheets 1 and 2 Sheets 1 to 3 vil81 Contractor's risk 79 82 Repairs 80 83 indemnity a1) | 84 Insurance cover a2) | 85 Insurance policies 83) 86 _I the Contractor does not insure 84) 87 _ Insurance by the Employer a5 90 Termination 86) 91 Reasons for termination Sheetsito5 87) 92 Procedures on termination 92) 83 Payment on termination 93 | W1 Dispute resolution Sheets 1104 947 (used unless Option Y(UK}2 epplies) Lo W2 Dispute resolution Sheetstto5 98) (used when Option Y(UK)2 applies) 1 | X41 Price adjustment for inflation Sheets tand2 403) | (used only with Options A, B, C and D) i x2 Changes in the law i X3___ Multiple currencies (used only with Options A and B) | X4 Parent company guarantee i XS Sectional Completion ' X6 Bonus for early Completion X7_ Delay damages Xi2 Partnering Sheats 1 to 3 X43 Performance bond X44 Advanced payment to the Contractor X15 Limitation of the Contractor's liability for his design to reasonable skill and care X46 Retention (not used with Option F) X17 Low performance damages X48 Limitation of liability X20 Key Performance Indicators (not used with Option x42) Y(UK)2__ The Housing Grants, Construction and Regeneration Act 1996 Y(UK)3_ The Contracts (Rights of Third Parties) Act 1999 | | iPREFACE. These flow charts depict the procedures followed when using the NEC3 Engineering and Construction Contract (ECC). They are intended to help people using the ECC to see how the various ECC core clauses and Options come together to produce clear and precise sequences of action for the people involved. The flow charts are not part of any contract. Much of the text and many of the words taken from the ECC itself are abbreviated in the flow charts. The fow charts depict almost all of the sequences of action set out in the ECC. Many of the sequences interact, and because of this, users of the flow charts will often have to review more than one sheet in order to track the full sequence of actions in one area.| | | ACKNOWLEDGEMENTS The NEC first edition was produced by the Institution of Civil Engineers through its NEC Working Group. The original NEC was designed and drafted by Dr Martin Barnes then of Coopers and Lybrand with the assistance of Professor J. G. Perry then of the University of Birmingham, T. W. Weddell then of Travers Morgan Management, T. H. Nicholson, Consultant to the Institution of Civil Engineers, A. Norman then of the University of Manchester Institute of Science and Technology and P.A. Baird, then Corporate Contracts Consultant, Eskom, South Africa, The second edition of the NEC documents for engineering and construction contracts was produced by the institution of Civil Engineers through its NEC Panel. ‘The third edition of the NEC Engineering and Construction Contract was produced by the Institution of Civil Engineers through its NEC Panel. The Flow Charts were produced by John S. Gillespie with assistance from Tom Nicholson. ‘The members of the NEC Panel are: P, Higgins, BSc, CEng, FICE, FCIArb (Chairmen) P. A, Baird, BSo, CEng, FICE, M(SA)ICE, MAPM M. Barnes, BSe(Eng), PhD, FREng, FICE, FCIOB, CCN, ACIArb, MBCS, FinstCES, FAPM A.J, Bates, FRICS, MinstOES. A.J, M, Blackler, BA, LLB(Cantab), MCIArb P.T. Cousins, BEng(Tech), DipArb, CEng, MICE, MCIAtb, MCMI LT. Eames, BSc, FRICS, FCIOB F. Forward, BA(Hons), DipArch, MSc(Const Law), RIBA, FCIArb Professor J. G. Perry, MEng, PhD, CEng, FICE, MAPM N.C. Shaw, FCIPS, CEng, MiMechE T.W. Weddell, BSc, CEng, DIC, FICE, FiStructE, ACIArb NEC Consultant: R.A. Gerrard, BSo(Hons), MRICS, FCIArb, FinstCES. Secretariat: A. Cole, LLB, LLM, BL J. M. Hawkins, BA(Hons), MSe F. N. Vernon (Technical Adviser), BSc, CEng, MICE The Institution of Civil Engineers acknowledges the help in preparing the third edition given by many other people, in particular, by: J.C. Broome, BEng A Else, BSc, CEng, FICE C. Flook, Esq. R. Lewendon, FICE, MIHT, MCIArb, MAPM T.H. Nicholson, BSc, FICE R, Patterson, BA, MA(Cantab), MBA, CEng, MICE C. Reed, CEng, MA, MSc, FICE D. Weeks, FICS S. Zarka, FRICS FyABBREVIATIONS USED IN THE FLOW CHART BOXES Foe. FO XS Flow chart for clause 64 Flow chart for secondary Option XS Employer Contractor Project Manager Supervisor Subcontractor Bill of quantities Contract Data Compensation event defect correction period Partnering Information Plant and Materials Price Adjustment Factor Price for Work Done to Date Schedule of Cost Components Shorter Schedule of Cast Components. Site Information Works InformationLegend (CHART START HEADINGS Headings in caps prove guidance HELPFUL HEADING STATEMENTS on Ira subciause ie Sxeaiong — |r} uromen wing patos oto NEC referenced, tot ines tedimscsausest ie from the NEC Loaic Links: Lins goto ict lanai dows Unless shown (QUESTION ‘Answer question tw determine he Boog ptosis on route folow SUBROUTINE Include another flow chert here CONTINUATION Link to matching paints) on other chat sheets CHART TILE, Chart number, Flow chart $1 Shoot 1 of 2 tile ard abeet Payment oe ® ® Flow chart $1 Sheet 2 of 2 CHART TLE Fowne wwnw.neccontract.com @ copyright nec 200515° TEC 3 Flow charts for the Engineering and Construction Contract AMENDMENTS JUNE 2006 The following amendments have been made to the June 2005 edition. i Page | Flow chart Correction | 28 | 32, box 324 ‘and of noted eaty warning | 4 59 | 60 Sheet 7 of 7, | \z4.4° replaced by 2" and ‘the i box OTHER Contract Data Part 1’ by ‘Option 2” COMPENSATION EVENTS. 2 © copyright nec 2005, \wwen.neccontract.com - {Fiow charts = NCC 3 peels be} tenn St ski jo edentuey ven = LOVHENOO SithL 40 BOWEN SH ADWAINOO SIL AB (oauINDY SNOLLVOINTWANOD 4 veo y Luoneojunuiwiog €y0 Lous EL HeUD MOLE ‘SNOILYOLILON ‘sauvOIUe30 ‘SNOUWOINAEWHOO 01413934 SSNOLLYOMNAINHIOD ‘20 nHOS 3 © copyright nec 2005 \wwn.neccontract.com<= NCC 3 Flow charts for the Engineering and Construction Contract eaonyLda0ov HOS NowssweEns3t! yo NoISsWtEns (v08.30410N 1004 ANaAa NOLLYSN3e109 vowawon | | soca seusoum mal ogi bad sap ‘ASMLON (aIALON NOISNALXa vaasuov Mr peved + fe 94 00900 vos anit 9a peo enemas oa oxtans rere ‘ai wos ‘oid O, NOISNELXA suoyreoqunut09 eJoz ious EL wey mols ‘idl YO OO1HBS ‘qonuad NIKI ATASH 21 VEINOO SIL ‘AB O=UINOSY NoiLvoINNWuNOD VOL ATE wwrw.naccontract,com copyright nec 2008, 4row charts = NEC 3 (eu ga39 eae pewsen SRE AS, i904 ‘SaLULON YOLOVELNOO ‘som nase whoa (GBONYHONN SaUsIBISNOdS3E 5 suoneoqunuswog eyoeous Ch NeYO Mold ‘© copyright nec 2005 aauinoss Nojssiwansae 2a 0NVLEIOOY ‘SNIGTOHHLIM HOS NOSYa GNVANI saaLd30ov Noissinens {NBA HOLLVSN3N109 LON Nano NOSVSEE ‘crnaHHum BONVLEBOOY ‘30N¥1Ld300¥ wos noissinaneae YO NOISSINENS V S| NOILYOINAWINGO 3H wonw.neccontract.com,<5" TICC 3 row charts for the Engineering and Construction Contract sosmaiadng oun pur sa0euey 198f0id OL ‘Ph Wes MOL uous a0 Sues geo anos soinau seu ou vionser etna oa smd fou a, HOLOVEINOD ASILON SaOV Ta HBAOTENS anana nouwswaanoo 0 64 oe oso maysossep ating vomigeh ofa an he oa WOLD¥ELINOD LONHISNI SONYHO 3L¥O AD WO NOLLWINNOANI SOM veneers | VOR TRO MIaHLIONTON WOLOWHLNOD AALLON LOVHINOO Ni SSONAUSSY ue susoequeg emo fupwand eos ‘oa tI UNBHLLNI GBLVIS SY SOM BHL 40 Subive 3SOHL SNOISSO GNY S¥LOM BHL SAIAOHG HOLOVELNOD 'ONV1dOOV AG GBONVHO LON SSUMIBISNOAS3Y BOLOVELNOD eceba00 carey uosiquaans aH HO TWSOWNYIA LO5rOUd SHL 30 ANSWaO¥ Ide Suva INV UO. 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