Nec3 Engineering and Construction Contract Compress

For use on projects associated with UK Shared Business Services Ltd
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 responsibility
An NEC document
April 2013
Construction Clients’ Board endorsement of NEC3

The Construction Clients’ Board 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
efficiencies across the public sector and promot
promotee behavio
behaviours
urs
in line with the principles of Achieving Excellence in Construction.
Cabinet Office UK
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.
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
parties to the contract and, hence, of the work included in the contract.
. It can be used in a wide variety of commercial situations, for a wide
variety of types of work and in any location.
. It is a clear and simple document
document – using language
language and a stru
structure
cture
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,
D, E and F.
ISBN (complete box set) 978 0 7277 5867 5

ISBN (this document) 978 0 7277 5865 1
ISBN (E
(Engi
nginee
neeri
ring
ng and Co
Const
nstruc
ructio
tion
n Co
Contr
ntract
act Gu
Guida
idance
nce Not
Notes)
es) 97
978
8 0 727
7277
7 59
5903
03 0
ISBN (Engineering and Construction Contract Flow Charts) 978 0 7277 5905 4
ISBN (Option A: Priced contract with activity schedule) 978 0 7277 5869 9
ISBN (Option B: Priced contract with bill of quantities) 978 0 7277 5871 2
ISBN (Option C: Target contract with activity schedule) 978 0 7277 5873 6
ISBN (Option D: Target contract
contract with bill of quan
quantitie
tities)
s) 978 0 7277 5875 0
ISBN (Option E: Cost reimbursable contract) 978 0 7277 5877 4
ISBN (Option F: Management contract) 978 0 7277 5879 8
ISBN (how to write the ECC Works Information) 978 0 7277 5907 8
ISBN (how to use the ECC communication forms) 978 0 7277 5909 2
Consultative edition 1991

First edition 1993
Second edition 1995
Reprinted November 1995 with amendments
Reprinted with corrections May 1998
Third edition June 2005
Reprinted with amendments June 2006
Reprinted 2007 (twice), 2008, 2009, 2010 (thrice), 2011, 2012
Reprinted with amendments 2013
British Library Cataloguing in Publication Data for this publication is available

from the British Library.
# Copyright nec 2013
All rights, including translation, reserved. The owner of this document may
reproduce the Contract Data and forms for the purpose of obtaining tenders,
awarding and administering contracts. Except as permitted by the Copyright,
Designs and Patents Act 1988, no part of this publication may be otherwise
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, Thomas Telford Ltd, One
Great George Street, Westminster, London SW1P 3AA.
Typeset by Academic + Technical, Bristol

Printed and bound in Great Britain by Bell & Bain Limited, Glasgow, UK
CONTENTS
Foreword v
Preface vii
Acknowledgements ix
Amendments x
Schedule of Options 1
Core clauses 1 General 3
2 The Contractor’s main responsibilities 7
3 Time 9
4 Testing and Defects 11
5 Payment 13
6 Compensation events 15
7 Title 20
8 Risks and insurance 21
9 Termination 24
Main Option clauses A Priced contract with activity schedule 27
B Priced contract with bill of quantities 29
C Target contract with activity schedule 31
D Target contract with bill of quantities 34
E Cost reimbursable contract
Co 38
F Management contract 40
Dispute resolution W Option W1 42
Option W2 45
Secondary Option clauses X1 Price adjustment for inflation 48
X2 Changes in the law 49
X3 Multiple currencies 49
X4 Parent company guarantee 49
X5 Sectional Completion 49
X6 Bonus for early Completion
Bo 50
X7 Delay damages 50
X12 Partnering 50
X13 Performance bond 52
X14
X14 Adva
Ad vanc
nced
ed pa
paym
ymen
entt to th
the
e Contractor 52
X15
X15 Lim
imit
itat
atio
ion
n of th
the
e Contractor’s liability for his design to reasonable 52
skill and care
X16 Retention 53
X17 Low performance damages 53
X18 Limitation of liability 53
X20 Key Performance Indicators 54
Y(UK)1 Project Bank Account 55
Y(UK
Y(UK)2
)2 Th
Thee Ho
Hous
usin
ing
g Gr
Gran
ants
ts,, Co
Cons
nstr
truc
ucti
tion
on an
and
d Re
Rege
gene
nera
rati
tion
on Ac
Actt 19
1996
96 59
Y(UK)3 Th
The Contracts (Rights of Third Parties) Act 1999 59
Z Additional conditions of contract 59
Note Options
Options X8 to X11 and X19 are not used
Schedule of Cost 60
Components
Shorter Schedule of Cost 63

Components
Contract Data 65
Index 78
FOREWORD
I was delighted to be asked to write the Foreword for the NEC3 Contracts.
I hav
have
e fol
follow
lowed
ed the outstand
outstanding
ing rise and success
success of NE
NECC con
contra
tracts
cts for a
number of years now, in particular during my tenure as the 146th President
of the Institution of Civil Engineers, 2010/11.

In my position as UK Government’s Chief Construction Adviser, I am working
with Government and industry to ensure Britain’s construction sector is
equipped with the knowledge, skills and best practice it needs in its transition
to a low carbon economy. I am promoting innovation in the sector, including in
particular
parti cular the use of Buil
Building
ding Information
Information Modelling (BIM) in publi
publicc secto
sectorr
constr
con struct
uction
ion pro
procur
cureme
ement;nt; and the syn
synerg
ergyy and fit wit
with
h the col
collab
labora
orativ
tive
e
nature of NEC contracts is obvious. The Government’s construction strategy is
a very significant investment and NEC contracts will play an important role in
sett
se ttin
ing
g hi
high
gh st
stan
anda
dards
rds of co cont
ntra
ract
ct pr
prep
epar
arat
atio
ion,
n, ma
mana
nage
geme
ment
nt an
and d th
thee
desirable behaviour of our industry.
In the UK, we are faced with having to deliver a 15–20 per cent reduction in
the
the co
cost
st to th
thee pu
publ
blic
ic se
sect
ctor
or of co
cons
nstr
truc
ucti
tion
on du
duri
ring
ng th
the
e li
life
feti
time
me of th
this
is
Parliament. Shifting mind-set, attitude and behaviour into best practice NEC
processes will go a considerable way to achieving this.
Of cou
course
rse,, NEC contract
contractss are use
used d suc
succes
cessfu
sfully
lly aro
around
und the wor
world
ld in bot
both
h
public
pub lic and private
private sec
sector
tor pro
project
jects;
s; thi
thiss tre
trend
nd see
seems
ms set to con
contin
tinue
ue at an
increasing pace. NEC contracts are, according to my good friend and NEC’s
creator Dr Martin Barnes CBE, about better management of projects. This is
quite achievable and I encourage you to understand NEC contracts to the best
you can and exploit the potential this offers us all.
Peter Hansford
UK Government’s Chief Construction Adviser
Cabinet Office
PREFACE
The NEC con contra

tracts
cts are the only suisuite
te of sta
standa
ndard
rd con
contra
tracts
cts des
design
igned
ed to
facilitate and encourage good management of the projects on which they are
used. The experience of using NEC contracts around the world is that they
really make a difference. Previously, standard contracts were written mainly
as leg
legal
al doc
docume
uments
nts best lef
leftt in the desk dra
drawer
wer un
until
til costly
costly and delaying
delaying
problems had occurred and there were lengthy arguments about who was to
blame.
The language of NEC contracts is clear and simple, and the procedures set
outt ar
ou are
e alalll de
desi
sign
gned
ed to st
stim
imul
ulat
ate
e gogood
od mamana
nage
geme
mentnt.. Fo
Fore
resi
sigh
ghte
ted
d
collab
col labora
oration
tion between
between all the con
contri
tribut
butors
ors to the pro
projec
jectt is the aim
aim.. The
contracts set out how the interfaces between all the organisations involved
will be managed – from the client through the designers and main contractors
to all the many subcontractors and suppliers.
Versions of the NEC contract are specific to the work of professional service
providers such as project managers and designers, to main contractors, to
subcontractors and to suppliers. The wide range of situations covered by the
contracts means that they do not need to be altered to suit any particular
situation.
The NE
The NEC
C co
cont
ntra
racts
cts ar
are
e th
the
e fir
first
st to de
deal
al sp
spec
ecifi
ifica
call
llyy an
and
d ef
effe
fect
ctiv
ivel
elyy wi
with
th
management of the inevitable risks and uncertainties which are encountered
to some
manage
man extent
agemen
ment t ofonthe
all projects.
unexp
un expect Management
ected
ed dra
draws
ws fullyof on
fully thethe
expected
collab
col is easy,
labora
orativ
tive effective
e app
approa
roach
ch
inherent in the NEC contracts.
Most people working on projects using the NEC contracts for the first time
are
are hu
huge
gely
ly im
impr
pres
esse
sed
d by th thee di
diff
ffer
eren
ence
ce be
betw
twee
eenn th
the
e co
conf
nfro
ront
ntat
atio
iona
nall
characteristics of traditional contracts and the teamwork engendered by the
NEC. The NEC does not include specific provisions for dispute avoidance. They
are not nec
necess
essary.
ary. Col
Collabo
laborat
rative
ive man
manage
agemen
mentt its
itself
elf is des
design
igned
ed to avo
avoid
id
disputes and it really works.
It is common for the final account for the work on a project to be settled at the
time
tim e whe
when
n the wor
workk is fin
finish
ished.
ed. The tradition
traditional
al lon
long
g per
period
iod of exp
expens
ensive
ive
professional work after completion to settle final payments just is not needed.
The NEC contracts are truly a massive change for the better for the industries
in which they are used.
Dr Martin Barnes CBE
Originator of the NEC contracts

ACKNOWLEDGEMENTS
The NE
The NEC
C firfirst
st ed
edit
itio
ion
n wa
wass pr
prod
oduc
uced
ed by th
the
e In
Inst
stit
itut
utio
ion
n of Ci
Civi
vill En
Engi
gine
neer
erss
through its NEC Working Group.
The original
original NEC was designed
designed and dra
drafte
fted
d by Dr Mar
Martin
tin Barnes
Barnes the
then
n of
Coopers
Universityand Lybrand withT.the
of Birmingham, W. assistance
Weddell thenof of
Professor J. G. Perry
Travers Morgan then of the
Management,
T. H. Nic
Nichol
holson
son,, Con
Consul
sultan
tantt to the Ins
Instit
tituti
ution
on of Civ
Civil
il En
Engin
gineer
eers,
s, A. Nor
Norman
man
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 thi
third
rd edi
editio
tion
n of the NEC Engine
Engineeri
ering
ng and ConConstr
struct
uction
ion Con
Contra
tract
ct was
produc
pro duced
ed by the InsInstit
tituti
ution
on of Civ
Civil
il Engin
Engineer
eerss thr
throug
ough
h its NEC Panel.
Panel. The
Flow
Flow Cha
Charts
rts were pro
produc
duced
ed by Joh
Johnn S. Gilles
Gillespie
pie with ass
assist
istanc
ance
e fro
from
m Tom
Nicholson.
The members of the NEC Panel are:
P. Higgins, BSc, CEng, FICE, FCIArb (Chairman)
P. A. Baird, BSc, CEng, FICE, M(SA)ICE, MAPM
M. Barnes, BSc(Eng), PhD, FREng, FICE, FCIOB, CCMI, ACIArb, MBCS,
FInstCES, FAPM
A. J. Bates, FRICS, MInstCES
A. J. M. Blackler, BA, LLB(Cantab), MCIArb
P. T. Cousins, BEng(Tech), DipArb, CEng, MICE, MCIArb, MCMI
L. T. 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, BSc(Hons), MRICS, FCIArb, FCInstCES
Secretariat:
A. Cole, LLB, LLM, BL
J. M. Hawkins, BA(Hons), MSc
F. N. Vernon (Technical Adviser), BSc, CEng, MICE
The Institution
edition given byofmany
Civil other
Engineers acknowledges
people, in particular,the
by:help in preparing the third
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, FRICS
S. Zarka, FRICS
AMENDMENTS JUNE 2006

The following amendments have been made to the June 2005 edition.
Page Clause Line

10 32.1 4 deleted: ‘and of notified early warning matters’
61 Contract Data 3 added, ‘(wit
‘(with
h amendme
amendments
nts June
June 2006)’
Part one, 1.
64 Contract Data 23 deleted:
deleted: ‘If there
there are
are additiona
additionall compensati
compensation
on
Part one, 1. events’ and following 4 lines
AMENDMENTS APRIL 2013

The fo
The foll
llow
owin
ing
g am
amenendm
dmen
ents
ts ha
have
ve be
been
en mamade
de to th
the
e Ju
June
ne 20
200505 ed
edit
itio
ion.
n.
Full details of all amendments are available on www.neccontract.com.
Page Clause Line

11 40.1 1 replace: ‘The subclauses in this clause only
apply’ with ‘This clause only applies’
16 61.1 1 te
text
xt re
repl
plac
aced
ed
61.3 1 te
text
xt re
repl
plac
aced
ed
17 61.4 1 text replaced
18 62.6 2 replace:
replace: ‘to this effect
effect’’ with ‘of
‘of his failu
failure’
re’
63.1 1 te
text
xt re
repl
plac
aced
ed
replace final sentence: ‘In all other . . . the event.’
with ‘In all other cases, the date is the date of
the notification of the compensation event.’
19 64.4 2 replace: ‘to this effect’ with ‘of his failure’
25 91.4 1 text replaced
28 63.14 2 delete: ‘instead of Defined Cost’
29 63.13 last paragraph delete: ‘instead of Defined Cost’
33 63.14 1 insert new clause
37 63.13 last paragraph delete: ‘instead of Defined Cost’

46 W2.3(7) 1 text
text re
repl
plac
aced
ed
W2.3(8) added at end: new sentence
W2.3(12) text replaced
55 Y(UK)1 1 insert new clause: ‘Project Bank Account’
57 Y(UK)1 1 insert new clause: ‘Trust Deed’
58 Y(UK)1 1 insert new clause: ‘Joining Deed’
Page Clause Line

59 Y2.1 (1) 1 text
text re
repl
plac
aced
ed
Y2.2 1 par
paragr
agraph
aph 3, text
text rep
replac
laced
ed
Y2.3 1 te
text
xt re
repl
plac
aced
ed
64 41 3rd bullet: text replaced
65 Contract Data 4 date repla
replaced
ced with ‘Apri
‘Aprill 2013’
2013’
Part one, 1.
73 Y(UK)3 1 te
text
xt in
inse
sert
rted
ed
Y(UK)1 and 1 te
text
xt in
inse
sert
rted
ed
Y(UK)3
75 Y(UK)1 1 text inserted
SCHEDULE
SCHEDULE OF OPTIO
OPTIONS
NS
The strategy for choosing the form of contract starts with a decision between
six main Options, one of which must be chosen.
Opti
Option
on A Pric
Priced
ed co
cont
ntra
ract
ct wi
with
th ac
acti
tivi
vity
ty sc
sche
hedu
dule
le
Opti
Option
on B Pric
Priced
ed co
cont
ntra
ract
ct wi
with
th bi
bill
ll of qu
quan
anti
titi
ties
es
Opti
Option
on C Targ
Target
et co
cont
ntra
ract
ct wi
with
th ac
acti
tivi
vity
ty sc
sche
hedu
dule
le
Opti
Option
on D Targ
Target
et co
cont
ntra
ract
ct wi
with
th bi
bill
ll of qu
quan
anti
titi
ties
es
Opt
ptiion E Cos
ostt reimburs
rsa
able cont
ntra
rac
ct
Option F Management contract
One of the following dispute resolution Options must be selected to complete
the chosen main Option.
Opti
Option
on W1 Disput
Dispute
e re
reso
solu
luti
tion
on pr
proc
oced
edure
ure (u
(use
sed
d unl
unles
ess
s th
the
e Uni
Unite
ted
d Ki
Kingd
ngdom
om Ho
Hous
usin
ing
g
Grants, Construction and Regeneration Act 1996 applies).
Opti
Option
on W2 Disput
Dispute
e re
reso
solu
luti
tion
on pr
proc
oced
edure
ure (u
(use
sed
d in th
the
e Uni
Unite
ted
d Ki
King
ngdo
dom
m wh
when
en th
the
e Ho
Hous
usin
ing
g
Grants, Construction and Regeneration Act 1996 applies).
The following secondary Options should then be considered. It is not necessary

to use any of them. Any combination other than those stated may be used.
Opti
Option
on X1 Pric
Price
e adj
adjus
ustm
tment
ent fo
forr in
inflat
flatio
ion
n (us
(used
ed on
only
ly wi
with
th Op
Opti
tion
ons
s A, B, C an
and
d D)
Option X2 Changes in the law
Opti
Option
on X3 Mult
Multip
iple
le cu
curr
rren
enci
cies
es (u
(use
sed
d on
only
ly wi
with
th Op
Opti
tion
ons
s A an
and
d B)
Option X4 Parent compan
anyy guar
ara
antee
Option X5 Sectional Comp
mplletion
Option X6 Bonus for early Completion
Option X7 Delay damages
Option X12 Partnering
Option X13 Performance bond
Option X14 Advanc
nced
ed pa
payyment to the Contractor
Option X15 Limitation of the Contractor’s liability for his design to reasonable skill and care
Opti
Option
on X1
X16
6 Rete
Retent
ntio
ion
n (n
(not
ot us
used
ed wi
with
th Opt
ptio
ion
n F)
Option X17 Low pe
perrformanc
nce
e damag
age
es
Option X18 Limitat
atiion of liability
Opti
Option
on X2
X20
0 Keyy Pe
Ke Perf
rfor
orman
mance
ce In
Indi
dica
cator
tors
s (no
(nott us
used
ed wi
with
th Op
Opti
tion
on X1
X12)
2)
The following Options dealing with nationa
nationall legisl
legislation
ation should be include
included
d if
required.
Option Y(UK
UK))1 Project Bank Acco
cou
unt
Opti
Option
on Y(
Y(UK)
UK)2
2 The
The Ho
Hous
usin
ing
g Gr
Gran
ants
ts,, Co
Cons
nstr
truct
uctio
ion
n an
and
d Re
Regen
gener
erat
atio
ion
n Ac
Actt 19
1996
96
Opti
Option
on Y(
Y(UK)
UK)3
3 The
The Co
Cont
ntra
ract
cts
s (R
(Rig
ights
hts of Th
Thir
ird
d Pa
Part
rtie
ies)
s) Ac
Actt 19
1999
99
Option Z Additional
Additional conditio
conditions
ns of contra
contract
ct
Notte
No Opti
Option
ons
s X8 to X1
X11
1 an
and
d X1
X19
9 ar
are
e no
nott us
use
ed.
www.neccontract.com # copyright nec 2013 1

CORE CLAUSES
1 General
s
e e
r s
o u
Acti
Action
ons
s 10 c a
l
1 0 .1 The Employer, the Contractor, the Project Mana ger and the Supervisor shall
Manager c
act as stated in this contract and in a spirit of mutual trust and co-operation.
Identified and defined 11 s

e
terms 11.
11.1
1 In these
these conditio
conditions
ns of contract
contract,, terms identi
identified
fied in the Contrac
Contractt Data are in s
u
italics and defined terms have capital initials. i a
n l
a c
11.2
11.2 (1) Th
(1) The
e Ac
Acce
cepte
ptedd Pr
Prog
ogra
ramme
mme is th
the
e pr
prog
ogra
ramme
mme identi
identifie
fiedd in th
the
e Co
Cont
ntra
ract
ct mn
o
it
Data or is the latest programme accepted by the Project Manager. The latest p
programme accepted by the supersedes
supersede s previo
previous
us Accep
Accepted
ted o
Programmes. Project Mana
Manager
ger
s
y e
(2) Completion is when the Contractor has r s
a u
d a
l
. done all the work which the Works Information states he is to do by the n c
Completion Date and o n
c o
e it
. corrected notified Defects which would have prevented the Employer from s
p
using the works and Others from doing their work . o
If the work which the Contractor is to do by the Completion Date is not stated
s
t
in the Works Information, Completion is when the Contractor has done all the n
work necessary for the Employer to use the works and for Others to do their t e
s n
work. o o
c p
m
(3) Th
(3) The
e Co
Compl
mplet
etio
ion
n Da
Date
te is th
the
e completion date unl
completion unless
ess lat
later
er cha
changed
nged in o
c
accordance with this contract.
(4) The Contract Date is the date when this contract came into existence.
(5) A Defect is t
c
a a
.
a part of the works which is not in accordance with the Works Information rn
t a
t
or o d
c
. a part of the works designed by the Contractor which is not in accordance
with the applicable law or the Contractor’s de desi
sign
gn wh
whic
ich
h th
the
e Project
Manager has accepted.
(6) The Defects Certificate is either a list of Defects that the Supervisor has
notified before the defects date which the Contractor has not corrected or, if
there are no such Defects, a statement that there are none.
(7) Equipment is items provided by the Contractor and used by him to Provide
the Works and which the Works Information does not require him to include in
the works.
(8) The Fee is the sum of the amounts calculated by applying the subcon-
tracted
tracted fee perce ntage to the Defined Cost of sub
percentage subcon
contra
tracte
cted
d wor
work
k and the
direct fee percentage to the Defined Cost of other work.

®
(9) A Key Date is the date by which work is to meet the Condition stated. The
Key Date is the key date stated in the Contract Data and the Condition is the
condition stated in the Contract Data unless later changed in accordance with
this contract.
(10) Others are people or organisations who are not the Employer, the Project
Manager, th
thee Supervisor, th
thee Adjudicator, th
the
e Contractor or any empl
employe
oyee,
e,
Subcontractor
Subcontractor or suppli
supplier
er of the Contractor.
(11) The Parties are the Employer and the Contractor.
(12) Plant and Materials are items intended to be included in the works.
(13) To Provide the Works means to do the work necessary to complete the
works in accordance with this contract and all incidental work, services and
actions which this contract requires.
(14) Th
(14) The
e Ri
Risk
sk Re
Regi
gist
ster
er is a re
regi
gist
ster
er of th
the
e ri
risk
sks
s wh
whic
ich
h ar
are
e li
list
sted
ed in th
the
e
s
e e
s
Contract Data and the risks which the Project Manager or the Contractor has
r
o
c
u
a
notified as an early warning matter. It includes a description of the risk and a
l
c description of the actions which are to be taken to avoid or reduce the risk.
(15) The Site is the area within the boundaries of the site and the volumes
above and below it which are affected by work included in this contract.
s
e (16) Site Infor
Information
mation is inform
information
ation which
s
u
in la . describes the Site and its surroundings and
a c
mn . is in the documents which the Contract Data states it is in.
ito
p (17) A Subcontractor is a person or organisation who has a contract with the
o
Contractor to
s . construct or install part of the works,
y e
r s . provide a service necessary to Provide the Works or
a u
d la . supply Plant and Materials which the person or organisation has wholly
n c
o n or partly designed specifically for the works.
c
e ito
s (18) The Working Areas are those parts of the working areas which are
p
o
. necessary for Providing the Works and
. used only for work in this contract
ts
n
t e unless later changed in accor
accordance
dance with this contract.
contract.
s n
o o (19) Works Information
Information is information which either
c p
m
o . specifies and descri
specifies describes
bes the works or
c
. states any constraints on how the Contractor Provides the Works
and is either
t
c . in the documents which the Contract Data states it is in or
a a
trn ta .
in an instruction given in accordance with this contract.
o d
c
Interp
Interpret
retati
ation
on and
and the law
law 12
12.1
12 .1 In th
this
is co
cont
ntra
ract
ct,, ex
exce
cept
pt wh
wher
ere
e th
the
e co
cont
ntex
extt sho
shows
ws ot
othe
herw
rwis
ise,
e, wo
word
rds
s in th
the
e
singular also mean in the plural and the other way round and words in the
masculine also mean in the feminine and neuter.
12.2
12.2 This cont
contrac
ractt is
is gove
governe
rned
d by
by the
the law of the contract.
12.3
12.3 No change
change to this
this contr
contract
act,, unless
unless provid
provided
ed for
for by the conditions of contract,
has effect unless it has been agreed, confirmed in writing and signed by the
Parties.
12.4 This contrac
contractt is the entire
entire agreeme
agreement
nt between
between the
the Parties
Parties..
4 # copyright nec 2013 www.neccontract.com

®
Core Clauses
Communi
Communicat
cation
ions
s 13
13.1
13 .1 Each in
Each inst
stru
ruct
ctio
ion,
n, ce
cert
rtifi
ifica
cate
te,, su
subm
bmis
issi
sion
on,, pr
prop
opos
osal
al,, re
reco
cord
rd,, ac
acce
cept
ptanc
ance,
e,
notific
notificati
ation,
on, rep
reply
ly and oth
other
er com
communi
municat
cation
ion whi
which
ch thi
this
s con
contra
tract
ct req
requir
uires
es is
communicated in a form which can be read, copied and recorded. Writing is in
the language of this contract.
13.2
13.2 A communica
communicatiotion
n has effect
effect when it is receiv
received
ed at the last ad
addre
dress
ss notifie
notified
d by
the
the re
reci
cipi
pien
entt fo
forr re
rece
ceiv
ivin
ing
g co
commu
mmuninica
cati
tions
ons or
or,, if non
none
e is no
noti
tifie
fied,
d, at th
the
e
address of the recipient stated in the Contract Data.
13.3
13.3 If thi
this
s cont
contrac
ractt requ
require
ires the Project Manager, the Supervisor or the Contractor
s the
to rep
reply
ly to a com
communi
municat
cation,
ion, unless
unless oth
otherw
erwise
ise stated
stated in this
this con
contra
tract,
ct, he
replies within the period for reply.
1 3 .4 The Project Manager replies to a communication submitted or resubmitted to
him
him by ththe
e Contractor for ac
acce
cepta
ptanc
nce.
e. If hi
hiss re
repl
plyy is not ac
acce
cepta
ptanc
nce,
e, th
the
e
Project Manager states his reasons and the Contractor resubmits the commu-
s
nication within the period for reply taking account of these reasons. A reason e e
s
r
for withholdi
withholding
ng acc
accept
eptanc
ance
e is tha
thatt mor
moree inf
inform
ormati
ation
on is nee
needed
ded in ord
order
er to o
c
u
a
l
assess the Contractor’s submission fully. c
1 3 .5 The Project Manager may extend the period for reply to a communication if the
Project Manager and the Contractor agree to the extension before the reply is
due. The Project Mana ger notifies the Contractor of the extension which has
Manager s
e
s
been agreed. u
i a
n l
1 3 .6 The Project Manager issues his certificates to the Employer and the Contrac- a c
tor. The Supervisor iss
issues
ues his cer
certifi
tificat
cates
es to the Project Manag er and th
Manager the
e mn
o
it
Contractor. p
o
13.7
13.7 A notificati
notification
on which this contrac
contractt requires
requires is com
communi
municat
cated
ed separate
separately
ly from
other communications. s
y e
r s
1 3 .8 The Proje
Project
ct Mana ger ma
Manager mayy wi
with
thho
hold
ld ac
acce
cept
ptanc
ance
e of a sub
submi
miss
ssio
ion
n by ththe
e a u
d a
l
Contractor. Withholding acceptance for a reason stated in this contract is not n c
o n
a compens
compensation
ation event. c o
e it
s
p
o
The Project Manager and 14
the Supervisor 14.1 The Project Mana ger’s or th
Manager the
e Supervisor’s acc accepta
eptance
nce of a com
communi
municat
cation
ion
from the Contractor or of his work does not change the Contractor’s responsi- s
t
n
bility to Provide the Works or his liability for his design. t e
s n
o o
1 4 .2 The Project Mana ger and the Supervisor, after notifying the Contractor, may
Manager c p
delegate any of their actions and may cancel any delegation. A reference to m
o
c
an action of the Project Manager or the Supervisor in this contract includes an
action by his delegate.
14.3 The Project Manager may give an instruction to the Contractor which changes t
the Works Information or a Key Date. c
a a
rt a
t
14.4 The Employer may replace the Project Manager or the Supervisor after he has n d
o
notified the Contractor of the name of the replacement. c
Adding to the Working 15

Areas 15.1 The Contractor may su subm
bmit
it a pr
prop
opos
osal
al fo
forr ad
addi
ding
ng an ar
area
ea to th
the
e Wo
Workrkin
ing
g
Areas to the Project Mana ger for acceptance. A reason for not accepting is
Manager
that the proposed area is either not necessary for Providing the Works or used
for work not in this contract.
Early
Early war
warning
ning 16
1 6 .1 The Contractor and the Project Manager give an early warning by notifying the
other as soon as either becomes aware of any matter which could
. increase the total of the Prices,
. delay Completion,
. delay meeting a Key Date or
. impair the performance of the works in use.

®
The Contractor may give an early warning by notifying the Project Manager of
any oth
other
er mat
matter
ter which could inc
increa
rease
se his total cost. The Project Mana
Manager
ger
enters early warning matters in the Risk Register. Early warning of a matter
for which a compensation event has previously been notified is not required.
16.2
16.2 Either
Either th
the
e Project Manager or the Contractor may instruct the other to attend a
risk reduction meeting. Each may instruct other people to attend if the other
agrees.
16.3 At a risk reduct
reduction
ion meeting,
meeting, those who attend
attend co-ope
co-operate
rate in
. making and con
making consid
sideri
ering
ng pro
propos
posals
als for how the eff
effect
ect of the reg
regist
istere
ered
d
risks can be avoided or reduced,
. seek
se ekin
ing
g so
solu
luti
tion
onss th
that
at wi
will
ll br
bring
ing ad
adva
vant
ntage
age to al
alll th
thos
ose
e wh
whoo wi
will
ll be
affected,
. deciding on the actions which will be taken and who, in accordance with
this contract, will take them and
s
e e
s
. deciding which risks have now been avoided or have passed and can be
r
o
c
u
a
removed from the Risk Register.
Register.
l
c
1 6 .4 The Project Manager revises the Risk Register to record the decisions made at
each
each ri
risk
sk re
reduc
ducti
tion
on mee
meeti
ting
ng and is
issue
sues
s th
the
e re
revi
vise
sed
d Ri
Risk
sk Re
Regi
gist
ster
er to th
the
e
Contractor. If a decision needs a change to the Works Information, the Project
s Manager instructs the change at the same time as he issues the revised Risk
e
s
u Register.
i la
n
a c
mn Ambiguities and 17
ito inconsistencies 17.1 The Project Mana ger or th
Manager the
e Contractor not
notifie
ifies
s the other as soo
soon
n as eit
either
her
p
o becomes aware of an ambiguity or inconsistency in or between the documents
which are part of this contract. The Project Mana ger gives an ins
Manager instru
tructi
ction
on
s resolving the ambiguity or inconsistency.
y e
r s
a u
d la Illegall and impossi
Illega impossible
ble 18
n c
o n requirements 18.1 The Contractor notifies the Project Manager as soon as he considers that the
c
e ito Works Information requires him to do anything which is illegal or impossible.
s
p
o If the Project Manager agrees, he gives an instruction to change the Works
Information appropriately.
ts
n Preven
Preventio
tion
n 19
t e 19.1
19.1 If an eve
event
nt occ
occurs
urs whi
which
ch
s n
o o
c p
m
. stops the Contractor completing the works or
o stops
stops the Contractor complet
completing
ing the works by th
the
e da
date
te sh
show
own
n on th
the
e
c .
Accepted Programme,
and which
t
c . neither Party could prevent and
a a
tr ta .
an exp
experi
erience
encedd cont
contrac
ractor
tor wou
would
ld have judged at the Contract
Contract Dat
Date
e to
n d
o have such a small chance of occurring that it would have been unreason-
c
able for him to have allowed for it,
the Project Manager gives an instruction to the Contractor stating how he is to
deal with the event.

®
Core Clauses
2 The Contractor’s main responsibilities
Provid
Providing
ing the Wor
Works
ks 20
2 0 .1 The Contractor Provides the Works in accordance with the Works Information.
The Contractor’s de
desi
sign
gn 21
2 1 .1 The Contractor designs the parts of the works which the Works Information
Information
states he is to design.
2 1 .2 The Contractor submits the particulars of his design as the Works Information
requires to the Project Mana ger for acc
Manager accept
eptance
ance.. A rea
reason
son for not acc
accept
epting
ing
the Contractor’s de
desi
sign
gn is th
that
at it do
does
es no
nott co
compl
mplyy wi
with
th ei
eith
ther
er th
the
e Wo
Work
rks
s
Information
Information or the applicable law. s
e e
s
The Contractor doe
does
s no
nott pr
proc
ocee
eed
d wi
with
th th
the
e re
rele
leva
vant
nt wo
work
rk unt
until
il th
the
e Project r
o u
c a
Manager has accepted his design. l
c
2 1 .3 The Contractor may submit his design for acceptance in parts if the design of
each part can be assessed fully.
s
e
Using the Contractor’s 22 s
u
design 22.1 The Employer mamayy us
use
e an
and
d co
copy
py th
the
e Contractor’s de
desisign
gn fo
forr an
anyy pur
purpos
pose
e i a
n l
connected with construction, use, alteration or demolition of the works unless a c
mn
otherwise stated in the Works Information and for other purposes as stated in o
it
the Works Information. p
o
Design
Design of Equi
Equipme
pment
nt 23 s
y e
2 3 .1 The Contractor submits particulars of the design of an item of Equipment to r s
a u
the Project Manager for acceptance if the Project Manager instructs him to. A d a
l
reason for not accepting is that the design of the item will not allow the Con- n c
o n
c o
tractor to Provide the Works in accordance with e it
s
p
. the Works Information, o
. the Contractor’s design which the Project Manager has accepted or
. the applicable law. s
t
n
t e
Peop
People
le 24 s n
o o
2 4 .1 The Contractor either employs each key person named to do the job stated in c p
m
the Contract Data or employs a replacement person who has been accepted o
c
by the Project Manager. The Contractor submits the name, relevant qualifica-
tions
tions an
andd ex
expe
peri
rienc
ence
e of a prprop
opos
osed
ed re
repl
plac
aceme
ement
nt pe
pers
rson
on to ththe
e Project
Manager for acceptanc
acceptance.e. A rea
reason
son for not accepting
accepting the pers
person
on is tha
thatt his
relevant qualifications and experience are not as good as those of the person t
c
a a
who is to be replaced. rt a
t
n d
2 4 .2 The Project Mana ger may, having stated his reasons, instruct the Contractor
Manager o
c
to remove an employee. The Contractor then arranges that, after one day, the
employee has no further connection with the work included in this contract.
Working with the Employer 25

and Others 25.1 The Contractor co-operates with Others in obtaining and providing information
which they need in connection with the works. He co-operates with Others and
shares the Working Areas with them as stated in the Works Information.
25.2 The Employer and the Contractor provide services and other things as stated
in the Works Information. Any cost incurred by the Employer as a result of the
Contractor not providing the services and other things which he is to provide is
assessed by the Project Manager and paid by the Contractor.

®
2 5 .3 If the Project Manag

Manager er dec
decide
ides
s tha
thatt the work doe
does
s not mee
meett the Condition
Condition
stated for a Key Date by the date stated and, as a result, the Employer incurs
additional cost either
. in carrying out work or
. by paying an additional amount to Others in carrying out work
on the same project, the additional cost which the Employer has paid or will
incur is paid by the Contractor. The Project Manager assesses the additional
cost within four weeks of the date when the Condition for the Key Date is met.
The Employer’s right to recover the additional cost is his only right in these
circumstances.
Subcon
Subcontra
tracti
cting
ng 26
2 6 .1 If the Contractor subcontracts work, he is responsible for Providing the Works
as if he had not subcontracted. This contract applies as if a Subcontractor’s
s employees and equipment were the Contractor’s.
e e
r s
o
c
u
a
2 6 .2 The Contractor sub
submit
mits
s the name of eac eachh prop
propose
osed d Sub
Subcon
contra
tracto
ctorr to the
l
c Project Manager for acceptance. A reason for not accepting the Subcontractor
is that his appointment will not allow the Contractor to Provide the Works. The
Contractor doe
does
s not app
appoioint
nt a prpropo
opose
sed
d Su
Subc
bcont
ontra
ract
ctor
or un
unti
till th
the
e Project
s Manager has accepted him.
e
s
u 2 6 .3 The Contractor submits the proposed conditions of contract for each subcon-
i la
n
tract to the Project Manager for acceptance unless
a c
mn an NEC contract is proposed or
ito
.
p . the Project Manager has agreed that no submission is required.

o
The Contractor does not appoint a Subcontractor on the proposed subcontract
s conditions submitted until the Project Manager has accepted them. A reason
y e
r s for not accepting them is that
a u
d la
n c . they will not allow the Contractor to Provide the Works or
o n
c they do not include a statement that the parties to the subcontract shall
ito
.
e
s act in a spirit of mutual trust and co-operation.
p
o
Other respon
responsibili
sibilities
ties 27
ts 2 7 .1 The Contractor obtains approval of his design from Others where necessary.
n
t e 2 7 .2 The Contractor provides access to work being done and to Plant and Materials
s n
o o being stored for this contract for
c p
m
o . the Project Manager,
c
. the Supervisor and
. Others notified to him by the Project Manager.
t 2 7 .3 The Contractor obeys an instruction which is in accordance with this contract
c
a a
tr ta and is given to him by the Project Manager or the Supervisor.
n d
o 2 7 .4 The Contractor acts in acc
accord
ordance
ance with the hea
health
lth and saf
safety
ety req
requir
uireme
ements
nts
c
stated in the Works Information.
Information.

®
Core Clauses
3 Time
Starting, Completion and 30

Key Dates 30.1 The Contractor does not start work on the Site until the first access date and
does the work so that Completion is on or before the Completion Date.
3 0 .2 The Project Mana

Manager
ger deci
decides
des the dat
datee of Comp
Complet ion.. The Project Mana
letion Manager
ger
certifies
certifies Completion within one week of Comple
Completion.
tion.
3 0 .3 The Contractor does the work so that the Condition stated for each Key Date
is met by the Key Date.
The programme 31
s
31.1
31.1 If a program
programme
me is not ident
identifie
ified
d in the Contr
Contract
act Data,
Data, the
the Contractor submits e
e s
a first programme to the Project Mana ger for acceptance
Manager acceptance withi
within
n the period r
o u
c a
stated in the Contract Data. l
c
31.2 The Contractor shows on each programme which he submits for acceptance
. the starting date, access dates, Key Dates and Completion Date,
s
. planned Completion, e
s
. the order and timing of the operations which the Contractor plans to do u
in order to Provide the Works, i a
n l
a c
. the
the or
orde
derr an
and
d ti
timi
ming
ng of th
the
e wo
work
rk of the Employer and Others as laslastt mn
o
it
agreed with them by the Contractor or, if not so agreed, as stated in the p
o
. Works
the Information,
dates when the Contractor plans to meet each Condition stated for
s
the Key Dates and to complete other work needed to allow the Employer y e
r s
and Others to do their work, a u
d a
l
. provisions for n c
o n
c o
float, e
ti
.
s
. time risk allowances, p
o
. health and safet
safetyy requir
requirements
ements and
. the procedures set out in this contract,
s
t
. the dates when, in ord
order
er to Pro
Provid
vide
e the Works in acc
accord
ordanc
ance
e wit
with
h his n
t e
programme,
program me, the Contractor will need s n
o o
c p
. access to a part of the Site if later than its access date, m
o
. acceptances, c
. Plant and Materials and other things to be provided by the Employer
and
. information from Others, t
c
a a
.
for each operation, a statement of how the Contractor plans to do the rt t
a
work identifying the principal Equipment and other resources which he n d
o
plans to use and c
. other information which the Works Information requires the Contractor to
show on a programme submitted for acceptance.
31.3
31.3 Wit
ithi
hin
n tw
two
o we
weeeks of the
the Contractor su
subm
bmitt
ittin
ing
g a pr
prog
ogra
ramme
mme to him fo forr
acceptance, the Project Manager either accepts the programme or notifies the
Contractor of his reasons for not accepting it. A reason for not accepting a
programme is that
. the Contractor’s plans which it shows are not practicable,
. it does not show the information which this contract requires,
. it does not represent the Contractor’s plans realistically or
. it does not comply with the Works Information.

®
Revisi
Revising
ng the
the progr
programme
amme 32
3 2 .1 The Contractor shows on each revised programme
. the actual progress achieved on each operation and its effect upon the
timing of the remaining work,
. the effects of implemented compensation events,
. how the Contractor plans to deal with any delays and to correct notified
Defects and
. any ot
other
her ch
chang
anges
es wh
whic
ich
h th
the
e Contractor pr
prop
opos
oses
es to mamake
ke to ththe
e
Accepted Programme.
submi
mits
ts a re
revi
vise
sed
d pr
prog
ogram
ramme
me to th
the
e Project Manager for
Manager
acceptance
. within the period for reply after the Project Manager has instructed him
to,
. when the Contractor chooses to and, in any case,
s
e e
s
. at no longer interval than the interval stated in the Contract Data from
r
o
c
u
a
the starting date until Completion of the whole of the works.
l
c
Access to and use of 33

the Site 33.1 The Employer allows access to and use of each part of the Site to the Contrac-
s tor which is necessary for the work included in this contract. Access and use
e is allowed on or before the later of its access date and the date for access
s
u
in la
shown on the Accepted Programme.
a c
mn
ito Instructions to stop or not 34
p to start work 3 4 .1 The Project Manager may instruct the Contractor to stop or not to start any
o
work and may later instruct him that he may re-start or start it.
s
y e Take over 35
r s
a u
d la
3 5 .1 The Employer need not take over the works before the Completion Date if it is
n c stat
stated
ed in th
the
e Co
Cont
ntra
ract
ct Da
Data
ta th
that
at he is nonott wi
will
llin
ing
g to do so
so.. Ot
Othe
herw
rwis
ise
e th
the
e
o n
c Employer takes over the works not later than two weeks after Completion.
e ito
s
p
o 3 5 .2 The Employer may use any part of the works befor before
e Com
Comple
pletio
tion
n has bee
been
n
certified. If he does so, he takes over the part of the works when he begins to
use it except if the use is
ts
n
t e . for a reason stated in the Works Information or
s n to suit the Contractor’s method of working.
o o .
c p
m 3 5 .3 The Project Mana ger certifies the date upon which the Employer takes over
Manager
o
c any part of the works and its extent within one week of the date.
Accele
Accelerat
ration
ion 36
t 3 6 .1 The Project Manager may instruct the Contractor to submit a quotation for an
c
a a
tr ta accele
acceleratio
ration
n to achiev
achieve
e Complet
Completion
ion befor
before
e to
the The Project
n d Manager states changes to the Key Dates beCompletion
included inDate.
the quotation. A
o
c quotation for an acceleration comprises proposed changes to the Prices and a
revised programme showing the earlier Completion Date and the changed Key
Dates. The Contractor submits details of his assessment with each quotation.
submi
mits
ts a qu
quot
otat
atio
ion
n or gi
give
ves
s hi
his
s re
reas
ason
ons
s fo
forr no
nott do
doin
ing
g so
within the period for reply.

®
Core Clauses
4 Testing and Defects
Tests and inspections 40

40.1
40.1 This clause
This clause only applies
applies to tests
tests and inspect
inspection
ions
s required
required by the Works
Works Infor-
Infor-
mation or the applicable law.
4 0 .2 The Contractor and the Employer provide materials, facilities and samples for
tests and inspections as stated in the Works Information.
4 0 .3 The Contractor and ththee Supervisor ea
each
ch no
noti
tifie
fies
s th
the
e ot
othe
herr of ea
each
ch of his
tests and inspections before it starts and afterwards notifies the other of its
results. The Contractor notifies the Supervisor in time for a test or inspection
to be arranged and done before doing work which would obstruct the test or
inspection. The Supervisor may watch any test done by the Contractor. s
e
e s
r
u
40.4
40.4 If a te
test
st or in
insp
spec
ecti
tion
on shows
shows that
that an
anyy wo
work
rk has a DeDefe
fect
ct,, th
the
e Contractor o
c a
l
corrects the Defect and the test or inspection is repeated. c
40.5 The Supervisor does his tests and inspections without causing unnecessary
delay to the work or to a payment which is conditional upon a test or inspec-
s
tion being successful. A payment which is conditional upon a Supervisor’s test e
s
or inspection being successful becomes due at the later of the defects date u
and the end of the last defect correction period if i a
n l
a c
mn
. the Supervisor has not done the test or inspection and o
it
. the delay to the test or inspection is not the Contractor’s fault. p
o
4 0 .6 The Project Manager assesses the cost incurred by the Employer in repeating
s
a test or inspection after a Defect is found. The Contractor pays the amount y e
r s
assessed. a u
d a
l
n c
Testing and inspection 41 o n
c o
e it
before delivery 41.1 The Contractor does not bring to the Working Areas those Plant and Materials s
p
which the Works Information states are to be tested or inspected before o
delivery until the Supervisor has notified the Contractor that they have passed
the test or inspection. s
t
n
t e
Searching for and 42 s n
o o
notifying Defects 42
42.1
.1 Untill th
Unti the
e defects date, the Supervisor may instruct the Contractor to search for c p
m
a Defect. He gives his reason for the search with his instruction. Searching o
c
may include
. uncovering, dismantling, re-covering and re-erecting work,
. providing
providing facil
facilities
ities,, mater
materials
ials and samples for tests and inspections done t
by the Supervisor an and d c
a a
. doin
doing
g tetest
sts
s an
and d ininspe
spect
ctio
ions
ns wh
whic
ich
h th
the
e Wo
Work
rks
s In
Info
form
rmat
atio
ion
n do
does
es no
nott rt a
t
n d
require. o
c
42.2
42.2 Untill th
Unti the
e defects date, the Supervisor notifies the Contractor of each Defect as
soon as he finds it and the Contractor notifies the Supervisor of each Defect
as soon as he finds it.
Correc
Correctin
ting
g Defe
Defects
cts 43
4 3 .1 The Contractor corrects a Defect whether or not the Supervisor notifies him of
it.
4 3 .2 The Contractor co
corr
rrec
ects
ts a no
noti
tifie
fied
d De
Defe
fect
ct be
befo
fore
re th
the
e end
end of th
the
e defect
tion period. The defe
correction
correc defect
ct corr
correcti
ection
on per iod beg
period begin
ins
s at Compl
Complet
etio
ion
n fo
forr
Defects notified before Completion and when the Defect is notified for other
Defects.

®
4 3 .3 The Supervisor issues the Defects Certificate at the later of the defects date
and
an d th
the
e en
end
d of th
the
e la
last
st defe
defect
ct correction period. The Employer’s ri
correction righ
ghts
ts in
respec
respectt of a Def
Defect
ect which the Supervisor has not found or notified are not
affected by the issue of the Defects Certificate.
43.4 The Project Manager arranges for the Employer to allow the Contractor access
to and use of a part of the works which he has taken over if they are needed
for correcting a Defect. In this case the defect correction period begins when
the necessary access and use have been provided.
Accept
Accepting
ing Def
Defect
ects
s 44
44.1 The Contractor and the Project Manager may each propose to the other that
the Works Information should be changed so that a Defect does not have to
be corrected.
44.2 If the Contractor and th the
e Projec
Projectt Mana ger are pr
Manager prep
epar
ared
ed to co
cons
nsid
ider
er th
the
e
s change, the Contractor submits a quotation for reduced Prices or an earlier
e e
r s
u
Completion Date or both to the Project Manager for acceptance. If the Project
o
c a
l Manager accepts the quotation, he gives an instruction to change the Works
c
Information,
Information, the Price
Prices
s and the Comple
Completion
tion Date accord
accordingly.
ingly.
Uncorr
Uncorrect
ected
ed Def
Defect
ects
s 45
s 4 5 .1 If the Contractor is given access in order to correct a notified Defect but he
e
s
u has not corrected it within its defect correction period, the Project Mana
Manager
ger
i la
n
assesses the cost to the Employer of havhaving
ing the Def
Defect
ect correcte
corrected
d by oth
other
er
a c
mn people and the Contractor pays this amount. The Works Information is treated
ito as having been changed to accept the Defect.
p
o
4 5 .2 If the Contractor is no
nott gi
give
ven
n ac
acce
cess
ss in or
orde
derr to co
corr
rrec
ectt a no
noti
tified
fied De
Defe
fect
ct
s before the defects date, the Project Manager assesses the cost to the Contrac-
y e tor of correcting the Defect and the Contractor pays this amount. The Works
r s
a u Information is treated as having been changed to accept the Defect.
d la
n c
o n
c
e ito
s
p
o
ts
n
t e
s n
o o
c p
m
o
c
t
c
a
tra ta
n d
o
c

®
Core Clauses
5 Payment
Assessin
Assessing
g the
the amount
amount due 50
5 0 .1 The Project Manager assesses the amount due at each assessment date. The
first
first as
asse
sess
ssme
ment
nt da
date
te is de
deci
cide
ded
d by th
the
e Proje
Project
ct Man agerr to sui
Manage uitt th
the
e
procedures of the Parties and is not later than the assessment interval after
the starting date. Later assessment
assessment dates occur
. at the end of each assessment interval until four weeks after the Supervisor
issues the Defects Certificate and
. at Completion of the whole of the works.
50.2
50.2 The
The am
amoun
ountt du
due
e is
s
. the Price for Work Done to Date, e
r
e
s
u
. plus other amounts to be paid to the Contractor, o
c a
l
. less amounts to be paid by or retained from the Contractor. c
Any ta
Any taxx wh
whic
ich
h th
the
e la
law
w re
requi
quire
res
s th
the
e Employer to pa
payy to th
the
e Contractor is
included in the amount due.
s
e
50.3
50.3 If no program
programme
me is identifi
identified
ed in the Contra
Contract
ct Data,
Data, one quarter
quarter of the Price
Price s
u
for Work Done to Date is retained in assessments of the amount due until i a
n l
the Contractor has submitted a first programme to the Project Mana ger for
Manager a c
mn
acceptance
accept ance showing the infor
information
mation which this contract requires. o
it
p
o
50.4
50.4 In
forass
apayment
sses
essi
sing
ngthe
the Contractor
the amountt due,
amoun due, the
has e Project Manager
thsubmitted considers
on or before any application
the assessment date.
s
The Project Manager gives the Contractor details of how the amount due has y e
r s
been assessed. a u
d a
l
50.5 The Project Mana ger cor
Manager correc
rects
ts any wrongly
wrongly ass
assess
essed
ed amo
amount
unt due in a lat
later
er n c
o n
payment certificate. c o
e it
s
p
o
Paym
Payment
ent 51
51.1 The Project Manager certifies a payment within one week of each assessment
date. The first payment is the amount due. Other payments are the change in s
t
n
the amount due since the last payment certificate. A payment is made by the t e
s n
Contractor to ththe
e Employer if th
the
e ch
chang
angee re
redu
duce
ces
s th
the
e am
amoun
ountt due
due.. Ot
Othe
herr o o
c p
payments are made by the Employer to the Contractor. Payments are in the m
o
currency of this contract unless otherwise stated in this contract. c
51.2 Each certified

certified payment is made within three weeks
weeks ofof the assessme
assessment
nt date or,
if a different period is stated in the Contract Data, within the period stated. If
a ce
cert
rtifi
ified
ed pa
paym
ymen
entt is la
late
te,, or if a pa
paym
ymen
entt is la
late
te be
beca
caus
use
e th
the
e Project t
c
a
Manager does not issue a certificate which he should issue, interest is paid ra
t t
on the late paym
payment
ent.. Int
Intere
erest
st is ass
assess
essed
ed fro
from
m the date by whi
which
ch the late n a
o d
payment
payment should
should have been made unt until
il the date when the late payment is c
made, and is included in the first assessment after the late payment is made.
51.3
51.3 If an amount
amount due
due is correc
corrected
ted in a later
later certi
certifica
ficate
te either
either
. by the Project Manager in relation to a mistake or a compensation event
or
. following a decision of the Adjudicator or the tribunal,
interest on the correcting amount is paid. Interest is assessed from the date
when the incorrect amount was certified until the date when the correcting
amount
amo unt is cer
certifi
tified
ed and is inc
include
luded
d in the assessme
assessmentnt whi
which
ch inc
includ
ludes
es the
correcting amount.
51.4
51.4 Interest
Interest is calcu
calculat
lated
ed on a daily
daily basi
basis
s at the
the interest rate and is compounded
annually.

®
Defin
Defined
ed Co
Cost
st 52
5 2 .1 All the Contractor’s co
All cost
sts
s wh
whicich
h ar
are
e not include
includedd in th
thee De
Define
fined d Co
Cost
st ar
are
e
treated as included in the Fee. Defined Cost includes only amounts calculated
using rates and percentages stated in the Contract Data and other amounts
at op
open
en ma
mark
rket
et or co
compe
mpetititi
tive
vely
ly te
tend
ndere
eredd pr
pric
ices
es wi
with
th de
deduc
ducti
tion
onss fo
forr al
alll
discounts, rebates and taxes which can be recovered.
s
e e
r s
o u
c a
l
c
s
e
s
u
i la
n
a c
mn
ito
p
o
s
y e
r s
a u
d la
n c
o n
c
e ito
s
p
o
ts
n
t e
s n
o o
c p
m
o
c
t
c
tra ta
a
n d
o
c

®
Core Clauses
6 Compensation events
Compens
Compensati
ation
on eve
events
nts 60
60.1
60.1 The fol
follow
lowing
ing are com
compens
pensati
ation
on even
events.
ts.
(1) The Project Manager gives an instruction changing the Works Information
except
. a change made in order to accept a Defect or
. a chan
change
ge to the Works Informat
Information
ion provided
provided by the Contractor for his
design which is made either at his request or to comply with other Works
Information
Information provided by the Employer.
(2) The Employer does not allow access to and use of a part of the Site by the s
later of its access date and the date shown on the Accepted Programme. e
r
e
s
o u
c a
(3) The Employer does not provide something which he is to provide by the l
c
date for providing it shown on the Accepted Programme.
(4) The Project Manager gives an instruction to stop or not to start any work
or to change a Key Date. s
e
s
(5) The Employer or Others u
i a
n l
. do not work within the times shown on the Accepted Programme, a c
mn
. do not work within the conditions stated in the Works Information or o
it
. carry out work on the Site that is not stated in the Works Information. p
o
(6) The Project Manager or the Supervisor does not reply to a communication
s
from the Contractor within the period required by this contract. y e
r s
a u
(7) The Project Mana
Managerger giv
gives
es an inst
instruc
ructio
tion
n for dealing
dealing wit
with
h an obj
object
ect of d a
l
value or of historical or other interest found within the Site. n c
o n
c o
e it
(8) The Project Manager or the Supervisor changes a decision which he has s
p
previously
previously communicated
communicated to the Contractor. o
(9) The Project Manager withholds an acceptance (other than acceptance of

a quotation for acceleration or for not correcting a Defect) for a reason not s
t
n
stated
stated in this contract. t e
s n
o o
(10) The Supervisor instruc
instructs
ts the Contractor to search for a Defect and no c p
Defect is found unless the search is needed only because the Contractor gave m
o
c
insufficient
insufficient notice of doing work obstr
obstructing
ucting a requir
required
ed test or inspec
inspection.
tion.
(11) A test or inspection done by the Supervisor causes unnecessary delay.
(12) The Contractor encounters physical conditions which t
c
are within the Site, ra
t a
t
n a
.
. are not weather conditions and o d

c
. an exp
experi
erience
encedd con
contra
tractor
ctor would have judged at the Con
Contra
tract
ct Dat
Date
e to
have such a small chance of occurring that it would have been unreason-
able for him to have allowed for them.
Only the differ
difference
ence between the physic
physical
al condit
conditions
ions encountered
encountered and those
for which it would have been reasonable to have allowed is taken into account
in assessing a compens
compensation
ation event.
(13) A weather measurement is recorded
. within a calendar month,
. before the Completion Date for the whole of the works and
. at the place stated in the Contract Data
the value of which, by comparison with the weather data, is shown to occur on
average less frequently than once in ten years.

®
Only the difference between the weather measurement and the weather which
the weather data show to occur on average less frequently than once in ten
years is taken into account in assessing a compensation event.
(14) An event which is an Employer’s risk stated in this contract.
(15) The Project Mana
(15) ger certifies take over of a part of the works before
Manager
both Completion and the Completion Date.
(16) The Employer does not provide materials, facilities and samples for tests
and inspections as stated in the Works Information.
(17) The Project Manager notifies a correction to an assumption which he has
stated
stated about a compens
compensation
ation event.
(18) A br
(18) brea
each
ch of co
cont
ntra
ract
ct by th
the
e Employer wh
whic
ich
h is not one of th
the
e ot
othe
herr
compensation
compensation events in this contract.
s (19) An event which
e e
r s
o
c
u
a
. stops the Contractor completing the works or
l
c . stops
completing
ing the works by th
the
e da
date
te sh
show
own
n on th
the
e
Accepted Programme,
and which
s
e neither Party could prevent,
s .
u
in la
. an exp
experi
erience
encedd cont
contrac
ractor
tor wou
would
ld have judged at the Contract
Contract Dat
Date
e to
a c have such a small chance of occurring that it would have been unreason-
mn able for him to have allowed for it and
ito
p . is not one of the other compensation events stated in this contract.
o
60.2
60.2 In judging
judging the physical
physical conditi
conditions
ons for the purpos
purpose
e of ass
assess
essing
ing a compensa-
compensa-
s tion event, the Contractor is assumed to have taken into account
y e
r s
a u . the Site Information,
d la
n c . publiclyy availa
publicl available
ble information referred
referred to in the Site Infor
Information,
mation,
o n
c information obtainable from a visual inspection of the Site and
ito
.
e
s other information
information which an experi
experienced
enced contractor
contractor could reasonably
reasonably be
p .
o expected to have or to obtain.

60.3 If there
there is an ambigui
ambiguity
ty or inconsi
inconsistency
stency within the Site
Site Informatio
Information
n (including
(including
ts
n the information referred to in it), the Contractor is assumed to have taken into
t e account the physical conditions more favourable to doing the work.
s n
o o
c p
m Notifying compensation 61
o
c events 61.
61.1
1 For compe
compensat
nsation
ion even
events
ts which
which aris
arise
e from
from the Project Manager or the Supervi-
sor giving an instruction, issuing a certificate, changing an earlier decision or
correcting an assumption, the Project Manager notifies the Contractor of the
t compensation event at the time of that communication. He also instructs the
c
tra ta Contractor
n da Contractor to
or submit
quotat
quo quotations,
tations
ions have alr unless
alread the
eadyy bee
beenn event
submit
sub arises
mitted from
ted.. The a fault ofputs
Contractor the
o
c the instruction
instruction or changed decis
decision
ion into effec
effect.
t.
6 1 .2 The Project Mana ger may instruct the Contractor to submit quotations for a
Manager
proposed instruction or a proposed changed decision. The Contractor does not
put a proposed instruction or a proposed changed decision into effect.
6 1 .3 The Contractor notifies the Project Manager of an event which has happened
or which he expects to happen as a compensation event if
. the Contractor believes that the event is a compensation event and
. the Project Manager has not notified the event to the Contractor.
If the Contractor does not notify a compensation event within eight weeks of
becoming aware of the event, he is not entitled to a change in the Prices, the
Completion Date or a Key Date unless the event arises from the Project Man-
ager or the Supervisor giving an instruction, issuing a certificate, changing an
earlier decision or correcting an assumption.

®
Core Clauses
6 1 .4 If the Project Manager decides that an event notified by the Contractor

. arises from a fault of the Contractor,
. has not happened and is not expected to happen,
. has no effect upon Defined Cost, Completion or meeting a Key Date or
. is not one of the compensation events stated in this contract
he notifies the Contractor of his decision that the Prices, the Completion Date
and
and th
thee Ke
Keyy Da
Date
tes
s ar
aree no
nott to be ch
chang
anged
ed.. If the Project Manager decides
Manager
otherwise, he notifies the Contractor accordingly and instructs him to submit
quotations.
The Project Manager notifies his decision to the Contractor and, if his decision
is that the Prices, the Completion Date or the Key Dates are to be changed,
instructs him to submit quotations before the end of either
. one week after the Contractor’s notification or
. a longer period to which the Contractor has agreed. s
e e
r s
If the Project Manager does not notify his decision, the Contractor may notify o
c
u
a
l
the Project Mana ger of his failure. A failure by the Project Manag
Manager er to reply
Manager c
within two weeks of this notification is treated as acceptance by the Project

Manager that the event is a compensation event and an instruction to submit
quotations. s
e
s
6 1 .5 If the Project Mana ger dec
Manager decide
ides
s tha
thatt the Contractor di
did
d no
nott giv
give
e an ea
earl
rlyy u
warning of the event which an experienced contractor could have given, he i a
n l
a c
noti
no tifie
fies
s th
this
is de
deci
cisi
sion
on to th
the
e Contractor whwhen
en he ininst
stru
ruct
cts
s hi
him
m to su
subm
bmit
it mn
o
it
quotations.
p
o
6 1 .6 If the Project Manager decides that the effects of a compensation event are
too unce
uncerta
rtain
in to be for
foreca
ecast
st rea
reason
sonably
ably,, he sta
states
tes ass
assumpt
umption
ions
s abo
about
ut the s
event in his instruction to the Contractor to submit quotations. Assessment of y e
r s
the event is based on these assumptions. If any of them is later found to have a u
d a
l
been wrong, the Project Manager notifies a correction. n c
o n
c o
61.7
61.7 A compens
compensati
ation
on event
event is
is not noti
notified
fied afte
afterr the defects date. e it
s
p
o
Quotations for 62
compensation events 62
62.1
.1 Afterr disc
Afte discus
ussi
sing
ng with
with the
the Contractor different ways of dealing with the com- s
t
pensation event which are practicable, the Project Mana ger may instruct the
Manager n
t e
Contractor to subsubmit
mit alt
altern
ernati
ative
ve quot
quotati
ations.
ons. The Contractor sub
submit
mits
s the s n
required
requir ed quotati
quotations
ons to the Project Mana ger and may sub
Manager submit
mit quot
quotati
ations
ons for o o
c p
other
other met
method
hodss of dea
dealin
ling
g wit
with
h the com
compens
pensati
ation
on eve
event
nt whi
which
ch he con
consid
siders
ers m
o
practicable. c
62.2 Quotations for

Quotations for compensatio
compensation
n events
events comprise
comprise proposed
proposed changes
changes to the Prices
Prices
and
an d any de
delalayy to th
the
e Co
Compl
mplet
etio
ion
n Da
Date
te an
andd Ke
Keyy Da
Date
tes
s as
asse
sess
ssed
ed by ththe
e
t
Contractor. ThThee Contractor sub
submi
mits
ts de
deta
tail
ils
s of his asasse
sess
ssmen
mentt wi
with
th ea
each
ch c
quotation. If the programme for remaining work is altered by the compensa- ra
t a
t
n a
tion event, the Contractor includes the alterations to the Accepted Programme o d
c
in his quotat
quotation.
ion.
6 2 .3 The Contractor submits quotations within three weeks of being instructed to
do so by the Project Manager. The Project Manager replies within two weeks of
the submission. His reply is
. an instruction to submit a revised quotation,
. an acceptance of a quotation,
. a notification that a proposed instruction will not be given or a proposed
changed decision will not be made or
. a notification that he will be making his own assessment.
6 2 .4 The Project Manag
Managerer instruc
instructs
ts the Contractor to submit a revised quotation
only after explaining his reasons for doing so to the Contractor. The Contractor
submits the revised quotation within three weeks of being instructed to do so.

®
6 2 .5 The Project Manager extends the time allowed for

. the Contractor to submit quotations for a compensation event and
. the Project Manager to reply to a quotation
if the Project Manager and the Contractor agree to the extension before the
Manager
submission or reply is due. The Project Manag er noti
Manager notifies
fies the extens
extension
ion that
has been agreed to the Contractor.
6 2 .6 If the Project Manager does not reply to a quotation within the time allowed,
the Contractor
submitted moremay notify
than one the Projectfor
quotation Manager of his failure.
the compensation heContractor
If the
event, states in
his notification which quotation he proposes is to be accepted. If the Project
Manager does not reply to the notification within two weeks, and unless the
quota
quo tati
tion
on is fo
forr a pr
propo
oposesed
d in
inst
struc
ructi
tion
on or a pr
propo
opose
sed
d ch
chan
anged
ged de
deci
cisi
sion
on,,
the Contractor’s notification is treated as acceptance of the quotation by the
Project Manager.
s
e e
r s
o u Assessing compensation 63
c a
l
c
events 63.
63.1
1 The changes
changes to the Prices
Prices are assess
assessed
ed as the effect
effect of the compensat
compensation
ion
event upon
. the actual Defined Cost of the work already done,
s . the forecast Defined Cost of the work not yet done and
e
s . the resulting Fee.
u
i la
n
If the compensation event arose from the Project Mana ger or the Supervisor
Manager
a c
mn giving an instruction, issuing a certificate, changing an earlier decision or cor-
ito
p
recting an assumption, the date which divides the work already done from the
o
work is
date not yet
the done
date is the
of the date of that
notification communication.
of the In all other cases, the
compensation event.
s
e
ry s
u
63.2
63.2 If the effec
effectt of a compensat
compensation
ion event
event is to reduce
reduce the total
total Defined
Defined Cost,
Cost, the
a Prices are not reduced except as stated in this contract.
d la
n c
o n 63.3
63.3 A delay
delay to the Comple
Completio
tionn Date is asse
assesse
ssed
d as the length
length of time
time that,
that, due to
c
e ito the compensation
compensation event, planned Completion
Completion is later than planned Completion
s
p
o as shown on the Accepted Programme. A delay to a Key Date is assessed as
the length
length of time tha
that,
t, due to the compensa
compensatiotion
n eve
event,
nt, the pla
planned
nned date
when the Condition stated for a Key Date will be met is later than the date
ts
n shown on the Accepted Programme.
t e
s n
o o 63.4
63.4 The rig
The right
htss of
of the
the Employer and the Contractor to changes to the Prices, the
c p
m Comp
Compleleti
tion
on Da
Date
te an
and
d th
the
e Ke
Keyy Date
Dates
s ar
are
e th
thei
eirr on
only
ly ri
righ
ghts
ts in re
resp
spec
ectt of a
o
c compensation event.
6 3 .5 If the Project Mana ger has not
Manager notifie
ified
d the Contractor of his decision
decision tha
thatt the
Contractor did not give an early warning of a compensation event which an
t experi
exp erienc
enced
ed con
contra
tracto
ctorr cou
could
ld have given, the eve
event
nt is ass
assess
essed
ed as if the
c
tra ta
a Contractor had given early warning.
n d
o 63.6
63.6 Assess
Ass essment
ment of the effect
effect of a com
compens
pensatio
ation
n event include
includes
s risk allowanc
allowances
es
c
for cost and time for matters which have a significant chance of occurring and
are at the Contractor’s risk under this contract.
63.7
63.7 Assess
Assessme
ments
nts are based
based upon the asassu
sumpt
mptio
ions
ns that the Contractor reacts
competently and promptly to the compensation event, that any Defined Cost
and time due to the event are rea
reason
sonably
ably incurred
incurred and tha
thatt the Accepted
Accepted
Programme can be changed.
63.8 A compensatio
compensation n event which is
is an instruc
instruction
tion to change the Works
Works Informati
Information
on
in order to resolve an ambiguity or inconsistency is assessed as if the Prices,
the Completio
Completionn Dat
Date
e and the Key DatDates
es wer
weree for the int
interp
erpret
retati
ation
on mos
mostt
favourable to the Party which did not provide the Works Information.
63.9
63.9 If a change
change to the Works Infor
Informat
mation
ion makes
makes the descri
descripti
ption
on of the Conditi
Condition
on
for a Key Date incorrect, the Project Mana ger correc
Manager corrects
ts the descr
description.
iption. This
correction is taken into account in assessing the compensation event for the
change to the Works Inform
Information.
ation.

®
Core Clauses
The Project Manager’s 64

assessments 64.1 The Project Manager assesses a compensation event
. if the Contractor has not submitted a quotation and details of his assess-
ment within the time allowed,
. if the Project Manager decides that the Contractor has not assessed the
compensation event correctly in a quotation and he does not instruct the
Contractor to submit a revised quotation,
. if, when the Contractor submits quotations for a compensation event, he
has not submitted
submit
this contract ted a him
requires progra
programme
mme ororalt
to submit altera
eratio
tions
ns to a pro
progra
gramme
mme whi
which
ch
. if, when the Contractor submits quotations for a compensation event, the
Project Manager has not accepted the Contractor’s latest programme for
one of the reasons stated in this contract.
6 4 .2 The Project Manag er assesses a compensation event using his own assess-
Manager
ment of the programme for the remaining work if s
e e
r s
. there is no Accepted Programme or o
c
u
a
l
. the Contractor ha
hass no
nott su
subm
bmit
itte
ted
d a pr
progr
ogramm
ammee or alalte
tera
rati
tion
ons
s to a c
programme for acceptance as required by this contract.

6 4 .3 The Project Mana ger notifies the Contractor of his assessment of a compen-
Manager
s
sati
sa tion
on ev
event
ent an
and
d giv
gives
es him dedeta
tail
ils
s of it wi
with
thin
in th
thee pe
peri
riod
od al
allo
lowe
wedd fo
forr th
the
e e
s
Contractor’s su
submi
bmiss
ssio
ion
n of hi
his
s qu
quototat
atio
ion
n fo
forr th
the
e sa
same
me eveven
ent.
t. Th
This
is pe
peririod
od u
star
starts
ts wh
when
en th
the
e ne
need
ed fo
forr th
thee Pro
Project
ject Mana
Managerger’s ass
assess
essment
ment bec
become
omes s i a
n l
a c
apparent. mn
o
it
6 4 .4 If the Project Manager does not assess a compensation event within the time p
o
allowed, the Contractor may notify the Project Mana
Manager
ger of his failure. If the
Contractor subm
submitt
itted
ed mor
more
e tha
thann one quo
quotat
tation
ion for the com
compens
pensati
ation
on eve
event,
nt, s
he states in his notification which quotation he proposes is to be accepted. If y e
r s
the Project Mana ger does not reply within two weeks of this notification the
Manager a u
d a
l
notific
not ificati
ation
on is tre
treate
atedd as acc
accepta
eptance
nce of the Contractor’s quo
quotat
tation
ion by the n c
o n
Project Manager. c o
e it
s
p
o
Implementing 65
compensation events 65.1
65.1 A compen
compensat
sation
ion even
eventt is imp
implem
lemente
ented
d when
when
s
t
. the Proj
Project
ect Ma
Manag er no
nager noti
tifie
fies
s hihis
s ac
acce
cept
ptan
ance
ce of ththe
e Contractor’s n
quotation, t e
s n
o o
. the Project Manager notifies the Contractor of his own assessment or c p
. a Contractor’s quo
quota
tati
tion
on is tr
trea
eated
ted as hav
havin
ing
g be
been
en ac
acce
cept
pted
ed by th
thee m
o
Project Manager. c
65.2
65.2 The as
The asse
sess
ssmen
mentt of a co
compe
mpensa
nsati
tion
on event
event is not revise
revised
d if a fo
fore
reca
cast
st upon
which it is based is shown by later recorded information to have been wrong.
t
c
ra
t a
t
n a
o d
c

®
7 Title
The Employer’s title to 70

Plant and Mater ials 70
Materials 70.1
.1 Whateve
Whate verr ti
titl
tle
e th
the
e Contractor has to Plant and Materials which is outside the
Working Areas passes to the Employer if the Supervisor has marked it as for
this contract.
70.2
70.2 Whatev
Whatever
er titl
title
e the Contractor ha
has
s to Pl
Plan
antt and Ma Mate
teri
rial
als
s pas
passe
ses
s to th
the
e
Employer if it has been brought within the Working Areas. The title to Plant
and Materials passes back to the Contractor if it is removed from the Working
Areas with the Project Manager’s permission.
s
Marking Equipment, 71
e
e
r s Plant and Materials 71.1
Materials The Supervisor marks Equipment, Plant and Materials which are outside the
o u
c a
l
outside
outside the Working Areas Working
Working Areas if
c
. this contract identifies them for payment and
. the Contractor has prepared them for marking as the Works Information
s
requires.
e
s
u Removi
Removing
ng Equi
Equipme
pment
nt 72
in la
a c 7 2 .1 The Contractor removes Equipment from the Site when it is no longer needed
mn unless the Project Manager allows it to be left in the works.
ito
p
o
Objects and materials 73
within the Site 7 3 .1 The Contractor has no ti titl
tle
e to an ob
obje
ject
ct of va
valu
lue
e or of hi
hist
stor
oric
ical
al or ot
othe
herr
s
y e interest within the Site. The Contractor notifies the Project Manager when such
r s
a u an object is found and the Project Mana ger instruc
Manager instructs
ts the Contractor how to
d la deal with it. The Contractor does not move the object without instructions.
n c
o n
c
e ito 7 3 .2 The Contractor has title to materials from excavation and demolition only as
s
p stated
stated in the Works Information.
o
ts
n
t e
s n
o o
c p
m
o
c
t
c
tra ta
a
n d
o
c

®
Core Clauses
8 Risks and insurance
Employer’s ri
risk
sks
s 80
80.1
80 .1 The
The fo
foll
llow
owin
ing
g ar
are
e Employer’s risks.
. Claims, proceedings, compensation and costs payable which are due to
. use or occupation of the Site by the works or for the purpose of the
works which is the unavoidable result of the works,
. negligence, breach of statutory duty or interference with any legal right
by the Employer or by any person employed by or contracted to him
except the Contractor or
. a fault of the Employer or a fault in his design. s
e e
s
. Loss of or damage to Plant and Materials supplied to the Contractor by r
o u
c a
the Employer, or by Others on the Employer’s behalf, until the Contractor l
c
has received and accepted them.
. Loss of or damage to the works, Plant and Materials due to
. war, civil war, rebellion, revolution, insurrection, military or usurped s
e
power, s
u
. stri
strike
kes,
s, ri
riot
ots
s an
and
d ci
civi
vill co
commo
mmoti
tion
on no
nott co
confin
nfined
ed to ththe
e Contractor’s i a
n l
employees or a c
mn
. radioactive contamination. o
it
p
. o
Loss of or
Employer wear orloss,
, except damage to damage
wear or of the works
the partsoccurring taken
before over by
the issue the
of the
s
Defects Certificate which is due to y e
r s
a u
. a Defect which existed at take over, d a
l
. an event occurring before take over which was not itself an Employer’s n c
o n
risk or c o
e it
s
. the activities of the Contractor on the Site after take over. p
o
. Loss of or wear or damage to the works and any Equipment, Plant and
Mater
Mat eria
ials
ls re
reta
tain
ined
ed on th
thee Si
Site
te by th
the
e Employer afte
afterr a ter
termina
minatio
tion,
n, s
t
except loss, wear or damage due to the activities of the Contractor on the n
t e
Site after the termination. s n
o o
. Additional Employer’s risks stated in the Contract Data. c p
m
o
c
The Contractor’s ri
risk
sks
s 81
81.1
81 .1 From th
From the
e starting date until the Defects Certificate has been issued, the risks
which are not carried by the Employer are carried by the Contractor.
t
c
Repai
Repairs
rs 82 ra
t a
t
82.1 Until the
the Defects
Defects Certifica
Certificate
te has been
been issued
issued and unless
unless otherwise
otherwise instru
instructed
cted n a
o d
by the Project Manager, the Contractor promptly replaces loss of and repairs c
damage to the works, Plant and Materials.
Inde
Indemn
mnit
ityy 83
83.1
83.1 Each Par
Each Party
ty indemnifie
indemnifies s the oth
other
er against
against claims,
claims, pro
procee
ceedin
dings,
gs, compens
compensatio
ation
n
and costs due to an event which is at his risk.
83.2
83.2 The liabi
liabilit
lityy of each Party
Party to indemnif
indemnifyy the other
other is reduced
reduced if events
events at the
other Party’s risk contributed
contributed to the claims
claims,, procee
proceedings,
dings, compensation
compensation and
costs. The reduction is in proportion to the extent that events which were at the
other Party’s risk contr
contributed,
ibuted, taking into account each Party
Party’s
’s respo
responsibil
nsibilities
ities
under this contract.

®
Insuran
Insurance
ce cov
cover
er 84
8 4 .1 The Contractor provides the insurances stated in the Insurance Table except
any insurance which the Employer is to provide as stated in the Contract Data.
The Contractor provides additional
additional insura
insurances
nces as stated in the Contract Data.
84.2
84.2 The insur
insuran
ance
cess ar
are
e in the joint
joint nam
names
es of ththe
e Pa
Part
rtie
ies
s and provi
provide
de cove
coverr fo
forr
event
events
s wh
whic
ich
h ar
are
e at th
the
e Contractor’s ri
risk
sk fr
from
om th
thee starting date unti
starting untill the
Defects
Defects Certifi
Certificate
cate or a termi
termination
nation certificate
certificate has been issued.
INSURANCE TABLE
Insurance against Minimum amount of cover or
minimum limit of indemnity
Loss of or damage to the works, Plant The replacement cost, including the
s
and Materials amount stated in the Contract Data
e
r
e
s
for the replacement of any Plant
o
c
u
a
and Materials provided by the
l
c Employer
Loss
Loss of or da
dama
mage
ge to Eq
Equi
uipm
pmen
entt The
The re
repl
plac
acem
emen
entt co
cost
st
s
e
s Liability for loss of or damage to The amount stated in the Contract
u
i la
n propertyy (excep
propert (exceptt the works, Plant and Data for any one event with cross
a c Materials
Materi als and Equipmen
Equipment) t) and liability
liability so that the insura
insurance
nce
mn
ito liability for bodily injury to or death of applies
applie s to the Parties separately
separately
p a person (not an employee of the
o
Contractor) caused by activity in
s connection with this contract
y e
r s
a u
d la Liability for death of or bodily injury to The greater of the amount required
n c employees of the Contractor arising by the applicable law and the
o n
c
e ito out of and in the course of their amount stated in the Contract Data
s
p employment in connection with this for any one event
o
contract
ts
n Insuran
Insurance
ce pol
polici
icies
es 85
t e
s n 85.1
85 .1 Before
Befo re the starting date and on each renewal of the insurance policy until the
o o
c p defects date, the Contractor subm
submits
its to the Project Manage
Managerr for acceptanc
acceptance e
m
o certificates which state that the insurance required by this contract is in force.
c
The certificates are signed by the Contractor’s insurer or insurance broker. A
reason for not accepting the certificates is that they do not comply with this
contract.
t
c
tra ta
a 85.2
85.2 Ins
Insuran
urance
againstce policiesand
policies
directors include
include
othera employees
waiver
waiver by the insure
insurers
of every rs of their
insured subrwhere
subrogat
except ogation
ion rights
rights
there is
n d
o fraud.
c
85.3 The Parties
Parties comply with the
the terms
terms and conditi
conditions
ons of the insurance
insurance polici
policies.
es.
85.4
85.4 Any amount
amount not recov
recovere
ered
d from
from an insure
insurerr is borne
borne by
by the Employer for events
which are at his risk and by the Contractor for events which are at his risk.
If the Contractor 86
does not insure 86.1 The Employer may insure a risk which this contract requires the Contractor to
insure if the Contractor does not submit a required certificate. The cost of this
insurance to the Employer is paid by the Contractor.
Insurance by the Employer 87

8 7 .1 The Project Manager submits policies and certificates for insurances provided
by the Employer to the Contractor for acceptance before the starting date an
andd
afterw
afterward
ards
s as the Contractor instruc
instructs.
ts. The Contractor acce
accepts
pts the polic
policies
ies
and certificates if they comply with this contract.

®
Core Clauses
8 7 .2 The Contractor’s acceptance of an insurance policy or certificate provided by

the Employer does not cha
change
nge the responsib
responsibili
ility
ty of the Employer to provide
the insurances stated in the Contract Data.
8 7 .3 The Contractor may insure a risk which this contract requires the Employer to
insure if the Employer doe
doess not submit a req
requir
uired
ed pol
policy
icy or cer
certifi
tificat
cate.
e. The
cost of this insurance to the Contractor is paid by the Employer.
s
e e
r s
o u
c a
l
c
s
e
s
u
i a
n l
a c
mn
o
it
p
o
s
y e
r s
a u
d a
l
n c
o n
c o
e it
s
p
o
s
t
n
t e
s n
o o
c p
m
o
c
t
c
ra
t a
t
n a
o d
c

®
9 Termination
Termination 90
90.1
90 .1 If eithe
eitherr Party
Party wish
wishes
es to termi
terminat
nate
e the Contractor’s obligation to Provide the
Works he notifies the Project Manager and the other Party giving details of his
reason for termin
terminating.
ating. The Project Manager issues a termination certificate to
both Parties promptly if the reason complies with this contract.
90.2 The Contractor may ter
termina
minate
te only for a reas
reason
on iden
identifie
tified
d in the Terminatio
Termination
n
Table. The Employer may terminate for any reason. The procedures followed and
the amounts due on termination are in accordance with the Termination Table.
s
TERMINATION TABLE
e e
r s
o u
c a Terminating Party Reason Procedure Amount due
l
c
The Employer A reason other P1 and P2 A1, A2 and A4

than R1–R21
s
e R1–R15 or R18 P1, P2 and P3 A1 and A3
s
u
i la
n R17 or R20 P1 and P3 A1 and A2
a c
mn R21 P1 and P4 A1 and A2
ito
p
o
The Contractor R1–R10, R16 or P1 and P4 A1, A2 and A4
R19
s
y e
r s R17 or R20 P1 and P4 A1 and A2
a u
d la
n c
o n
c 90.3 The procedure
proceduress for termin
termination
ation are
are implement
implementeded immediatel
immediatelyy after the Project
e ito
s Manager has issue
issuedd a termi
termination
nation certificate.
certificate.
p
o
90.4
90.4 Within
Within thirte
thirteen
en weeks
weeks of termin
terminat
atio
ion,
n, the Project Mana ger cer
Manager certifi
tifies
es a fina
finall
payment to or from the Contractor which is the Project Manager’s assessment
ts of th
the
e amo
amount
unt due on te
termi
rmina
nati
tion
on leless
ss th
the
e to
tota
tall of pr
prev
evio
ious
us pa
payme
yment
nts.
s.
n
t e Payment is made within three weeks of the Project Manager’s certificate.
s n
o o
c p 90.5
90.5 After a termina
After terminatio
tion
n certific
certificate
ate has
has been issue
issued,
d, the Contractor does no further
m
o work necessary to Provide the Works.
c
Reason
Reasons
s for ter
termin
minati
ation
on 91
91.1
91.1 Either Party
Either Party may termina
terminate
te if the other
other Party
Party has done one of the follow
following
ing or
t its equivalent.
c
tra ta
a . If the other Party is an individual and has
n d
o
c . presented his petition for bankruptcy (R1),
. had a bankruptcy order made against him (R2),
. had a receiver appointed over his assets (R3) or
. made an arrangement with his creditors (R4).
. If the other Party is a company or partnership and has
. had a winding-up order made against it (R5),
. had a provisional liquidator appointed to it (R6),
. passed a resolution for winding-up (other than in order to amalgamate
or reconstruct) (R7),
. had an administration order made against it (R8),
. had
ha d a rerece
ceiv
iver
er,, re
rece
ceiv
iver
er and mamana
nager
ger,, or ad
admimini
nist
stra
rati
tive
ve re
rece
ceiv
iver
er
appoin
app ointed
ted over the whole or a sub substa
stanti
ntial
al par
partt of its undertak
undertaking
ing or
assets (R9) or
. made an arrange
arrangement
ment with its creditors (R10).

®
Core Clauses
9 1 .2 The Employer may te term

rmin
inat
ate
e if th
the
e Project Manager has notified
Manager notified tha
thatt the
Contractor has defaulted in one of the following ways and not put the default
right within four weeks of the notification.
. Substantiallyy failed to comply with his obliga
Substantiall obligations
tions (R11).
. Not provided a bond or guarantee which this contract requires (R12).
. Appoi
App oint
nted
ed a Su Subc
bcon
ontr
trac
acto
torr fo
forr su
subs
bsta
tanti
ntial
al wo
work
rk be
befo
fore
re th
the
e Project
Manager has accepted the Subcontractor (R13).
91.3 The Employer may te term
rmin
inat
ate
e if th
the
e Project Mana ger has notified
Manager notified that
that the
Contractor ha
hass de
defa
faul
ulte
ted
d in on
onee of th
the
e fo
foll
llowi
owing
ng wa
ways
ys and not ststop
oppe
ped
d
defaulting
defaulting within four weeks of the notification.
notification.
. Substantially hindered the Employer or Others (R14).
. Substantiall
Substantiallyy broken a health or safety regulation
regulation (R15).
9 1 .4 The Contractor may terminate if the Employer has not paid an amount due
under the contract within eleven weeks of the date that it should have been s
e e
paid (R16). r s
u
o
c a
l
91.5
91.5 Either Party
Either Party may termina
terminate
te if the Parties
Parties have
have been releas
released
ed under
under the law c
from further performance of the whole of this contract (R17).

91.6 If the Project Manager has instructed the Contractor to stop or not to start any
substantial work or all work and an instruction allowing the work to re-start or s
e
s
start has not been given within thirteen weeks, u
i a
n l
. the Employer may terminate if the instruction was due to a default by the a c
Contractor (R18), mn
o
it
. the Contractor may terminate if the instruction was due to a default by p
o
the Employer (R19) and
. either Party may terminate if the instruction was due to any other reason s
(R20). y e
r s
a u
9 1 .7 The Employer may terminate if an event occurs which d a
l
n c
o n
. stops the Contractor completing the works or c o
e
stops
completing
ing the works by th
the
e da
date
te shown
shown on th
the
e s ti
.
p
Accepted Programme and is forecast to delay Completion by more than o
13 weeks,
s
t
and which n
t e
neither Party could prevent and s n
o o
.
. an exp
experi
erience
encedd con
contra
tractor
ctor would have judged at the Con
Contra
tract
ct Dat
Date
e to c p
m
have such a small chance of occurring that it would have been unreason- o
c
able for him to have allowed for it (R21).
Procedures
Procedures on termin
termination
ation 92
92.1
92 .1 On te
term
rmin
inat
atio
ion,
n, th
the
e Employer may complete the works and may use any Plant t
c
and Materials to which he has title (P1). ra
t a
t
n a
92.2
92.2 The proced
procedure
ure on termina
terminatio
tion
n also include
includes
s one or more of the follow
following
ing as o d
c
set out in the Termination Table.
P2 The Employer may instruct the Contractor to leave the Site, remove any
Equipment, Plant and Materials from the Site and assign the benefit of
any subcontract or other contract related to performance of this contract
to the Employer.
P3 The Employer may use any Equipment to which the Contractor has title to
complete
complet e the works. Th The
e Contractor promp
promptly
tly rem
remove
ovess the Equ
Equipme
ipment
nt
from
from Sit
Sitee whe
when
n the Project Mana ger noti
Manager notifies
fies him tha
thatt the Employer no
longer requires it to complete the works.
P4 The Contractor leaves the Working Areas and removes the Equipment.

®
Paymen
Paymentt on term
termina
inatio
tion
n 93
93.1
93.1 The amoun
amountt due on termi
terminat
nation
ion incl
include
udes
s (A1)
(A1)
. an amount due assessed as for normal payments,
. the Defined Cost for Plant and Materials
. within the Working Areas or
. to which the Employer has title
title and of wh
whic
ich
h th
the
e Contractor has to
accept delivery,
.
other Defined Cost reasonably incurred in expectation of completing the

whole of the works,
. any amounts retained by the Employer and
. a deduction of any un-repaid balance of an advanced payment.
93.2
93.2 The amount
amount due on termin
terminati
ation
on also inclu
includes
des one
one or more of the follo
followin
wing
g as
set out in the Termination Table.
s
e e
s
A2 The forecas
forecastt Defined
Defined Cost of removing
removing the
the Equipment.
Equipment.
r
o u
c a
l A3 A deduction
deduction of the forec
forecast
ast of the additi
additional
onal cost
cost to the Employer of com-
c
pleting the whole of the works .
A4 The direct fee percentage applied to
s for Options A, B, C and D, any excess of the total of the Prices at the
e .
s
u Contract Date over the Price for Work Done to Date or
in la . for Options E and F, any excess of the first forecast of the Defined Cost
a c
mn for the works over the Price for Work Done to Date less the Fee.
ito
p
o
s
y e
r s
a u
d la
n c
o n
c
e ito
s
p
o
ts
n
t e
s n
o o
c p
m
o
c
t
c
tra ta
a
n d
o
c

MAIN OPTION CLAUSES
Option A: Priced contract with activity schedule
Identified and defined 11

terms 11
11.2
.2 (20) The
(20) The Activ
Activit
ityy Sched
Schedul
ule
e is the activity schedule unle
schedule unless
ss lat
later
er chan
changed
ged in
(22) Defined Cost is the cost of the components in the Shorter Schedule of
s
Cost Components whether work is subcontracted or not excluding the cost of e e
r s
preparing quotations for compensation events. o u
c a
l
c
(27) The Price for Work Done to Date is the total of the Prices for
. each group of completed activities and
. each completed activity which is not in a group. s
e
s
A completed activity is one which is without Defects which would either delay u
or be covered by immediately following work. in la
a c
mn
(30) The Prices
(30) Prices ar
are
e th
the
e lu
lump
mp su
sum
m pr
pric
ices
es fo
forr ea
each
ch of th
the
e ac
acti
tivi
viti
ties
es on th
the
e io
t
Activity
Activity Schedule unless later changed in accord
accordance
ance with this contract.
contract. p
o
The programme 31 s
3 1 .4 The Contractor pro
provide
vides
s inf
inform
ormati
ation
on whi
which
ch sho
shows
ws how eac
eachh act
activi
ivity
ty on the y e
r s
Activi
Activity
ty Sch
Schedu
edule
le rel
relate
atess to the ope
operat
ration
ions
s on eac
each
h prog
program
ramme
me whiwhich
ch he a u
d a
l
submits for acceptance. n c
o n
c o
e it
Accele
Accelerat
ration
ion 36 s
p
o
3 6 .3 Whe
hen
n th
the Proje
Project
ct Manag er acc
Manager accep
epts
ts a quota
quotati
tion
on fo
forr an ac
acce
cele
lerat
ratio
ion,
n, he
changes the Prices, the Completion Date and the Key Dates accordingly and
accepts the revised programme. s
t
n
t e
The Activity Schedule 54 s n
o o
c p
54.1 Information
Information in the Activity
Activity Schedule is not Works Informat
Information
ion or Site Informati
Information.
on. m
o
5 4 .2 If the Contractor changes a planned method of working at his discretion so c
that the activities on the Activity Schedule do not relate to the operations on
the Accepted Programme, he submits a revision of the Activity Schedule to the
Project Manager for acceptance. t
c
54.3 A reason
reason for not accepting
accepting a revision
revision of
of the Activi
Activity
ty Schedule
Schedule is
is that ra
t a
t
n a
o d
. it does not comply with the Accepted Programme, c
. any changed Prices are not reasonably distributed between the activities
or
. the total of the Prices is changed.
Assessing compensation 63
events 63.10
63.10 If the effect
effect of a compensat
compensation
ion event
event is to red
reduce
uce the total
total Defined Cost
Cost and
the event is
. a change to the Works Information or
. a correction of an assumption stated by the Project Manager for assessing
an earlier compensation event,
the Prices are reduced.
63.12
63.12 Assess
Assessment
mentss for changed
changed Pri
Prices
ces for com
compens
pensati
ation
on eve
events
nts are in the form of
changes to the Activity Schedule.

®
63.1
63.14
4 If th
the
e Project Manager and the Contractor agree, rates and lump sums may be
used to assess a compensation event.
Implementing 65
65.4
.4 The ch
The chan
ange
gess to th
thee Pr
Pric
ices
es,, th
the
e Co
Comp
mple
leti
tion
on Da
Date
te an
andd th
the
e Ke
Keyy Da
Date
tes
s ar
are
e
included
included in the notification implementing
implementing a compens
compensation
ation event.
Payment
Payment on termi
terminatio
nation
n 93
93.3
93.3 The amount
amount due on te term
rmin
inat
ation
ion is as
asse
sess
ssed
ed wi
witho
thout
ut ta
taki
king
ng gr
grou
oupi
ping
ng of
activities into account.
s
e e
r s
o u
c la
c
s
e
s
u
i a
n l
a c
mno
ti
p
o
s
y e
r s
a u
d la
n c
o n
c
e ito
s
p
o
ts
n
t e
s n
o o
c p
m
o
c
t
c
tra ta
a
n d
o
c

®
Main Option Clauses
Option B: Priced contract with bill of quantities

terms 11
11.2
.2 (21) The
(21) The Bill
Bill of
of Quant
Quantit
itie
ies
s is the
the bill of quantities as changed in accordance
with this contract to accommodate implemented compensation events and for
accepted quotations for acceleration.

(22) Defined Cost is the cost of the components in the Shorter Schedule of
Cost Components whether work is subcontracted or not excluding the cost of
preparing quotations for compensation events.
(28) The Price for Work Done to Date is the total of
. the quantity
quantity of the work which the Contractor has com comple
pleted
ted for eac
each
h s
item in the Bill of Quantities multiplied by the rate and e e
r s
a pr
prop
oport
ortio
ion
n of ea each
ch lu
lump
mp susum
m whwhic
ich
h is th
thee pr
prop
oport
ortio
ion
n of th
the
e wo
work
rk o u
.
c a
l
covered by the item which the Contractor has completed. c
Complet
Compl eted
ed wo
work
rk is wo
work
rk wi
with
thou
outt De
Defe
fect
cts
s wh
whic
ich
h wo
woul
uld
d ei
eith
ther
er de
dela
layy or be
covered by immediately following work.
s
e
(31) The Prices are the lump sums and the amounts obtained by multiplying s
u
the rates by the quantities for the items in the Bill of Quantities. i la
n
a c
mn
Accele
Accelerat
ration
ion 36 io
t
3 6 .3 Whe
hen
n th
the Proje
Project
ct Manag er acc
Manager accep
epts
ts a quota
quotati
tion
on fo
forr an ac
acce
cele
lerat
ratio
ion,
n, he p
o
changes the Prices, the Completion Date and the Key Dates accordingly and
accepts the revised programme. s
y e
r s
The Bill of Quantities 55 a u
d a
l
55.1 Information
Information in the Bill
Bill of Quantitie
Quantities
s is not Works
Works Information
Information or Site Informati
Information.
on. n c
o n
c o
e it
Compensa
Compensation
tion event
events
s 60 s
p
60.4
60.4 A differenc
differencee between
between the final
final total quanti
quantityty of work done
done and the quantity
quantity o
stated for an item in the Bill of Quantities is a compensation event if
s
t
. the difference does not result from a change to the Works Information, n
the difference causes the Defined Cost per unit of quantity to change t e
s n
.
and o o
c p
. the rate in the Bill of Quantities for the item multiplied by the final total m
o
quantity of work done is more than 0.5% of the total of the Prices at the c
Contract Date.
If th
the
e De
Defin
fined
ed Co
Cost
st per un
unit
it of qu
quant
antit
ityy is re
reduc
duced
ed,, th
the
e af
affe
fect
cted
ed ra
rate
te is
t
reduced. c
ra
t a
t
60.5
60.5 A differe
difference
nce betwee
between n the final total
total quanti
quantity
ty of work
work done and the
the quantity
quantity for
for n a
o d
an item stated in the Bill of Quantities which delays Completion or the meet- c
ing of the Condition stated for a Key Date is a compensation event.
6 0 .6 The Project Mana ger cor
Manager correc
rects
ts mis
mistak
takes
es in the Bil
Billl of Qua
Quanti
ntitie
ties
s whi
which
ch are
departures from the rules for item descriptions and for division of the work
into
into it
items
ems in ththee met
method
hod of measu rementt or ar
measuremen are e du
duee to am
ambibigu
guit
itie
ies
s or
incons
inconsist
istenc
encies
ies.. Each suc
such
h cor
correc
rectio
tion
n is a com
compens
pensati
ation
on eve
event
nt whi
which
ch may
lead to reduce
reducedd Price
Prices.
s.
60.7
60.7 In as
asse
sess
ssin
ing
g a co
comp
mpen
ensat
satio
ion
n eveven
entt wh
whic
ich
h re
resu
sult
lts
s fr
from
om a cocorr
rrec
ecti
tion
on of an
incons
inconsist
istenc
encyy bet
betwee
ween
n the Bil
Billl of Qua
Quantit
ntities
ies and ano
anothe
therr doc
documen
ument,t, the
Contractor is assumed to have taken the Bill of Quantities as correct.

®
Assessing compensation 63
events 63.
63.10
10 If the effect
effect of a compensati
compensation
on event is to red
reduce
uce the total Defined
Defined Cost and
the event is
. a change to the Works Information or
. a correction of an assumption stated by the Project Manager for assessing
an earlier compensation event,
the Prices are reduc
reduced.
ed.
63.13
63.13 Assess
Assessment
ments s for changed
changed Pri
Prices
ces for com
compens
pensati
ation
on eve
events
nts are in the form of
changes to the Bill of Quantities.
. For the whole or a part of a compensation event for work not yet done
and for which there is an item in the Bill of Quantities, the changes are
. a changed rate,
. a changed quantity or
s
e e . a changed lump sum.
r s
o u
c la . For the whole or a part of a compensation event for work not yet done
c
and for which there is no item in the Bill of Quantities, the change is a
new pri
priced
ced ite
item
m whi
which,
ch, unle
unless
ss the Project Manag er and the Contractor
Manager
agree otherwise, is compiled in accordance with the method of measure-
s ment.
e
s
u . For the whole or a part of a compensation event for work already done,
i a
n l the change is a new lump sum item.
a c
mno If the Project Manager and the Contractor agree, rates and lump sums may be
ti
p used to assess a compensation event.
o
s Implementing 65
y e compensation events 65
65.4
.4 The ch
The chan
ange
gess to th
thee Pr
Pric
ices
es,, th
the
e Co
Comp
mple
leti
tion
on Da
Date
te an
andd th
the
e Ke
Keyy Da
Date
tes
s ar
are
e
r s
a u included
included in the notification implementing
compensation
ation event.
d la
n c
o n
c
e ito
s
p
o
ts
n
t e
s n
o o
c p
m
o
c
t
c
tra ta
a
n d
o
c

®
Main Option Clauses
Option C: Target contract with activity schedule

terms 11
11.2
.2 (20) The
(20) The Activ
Activit
ityy Sched
Schedul
ule
e is the activity schedule unle
schedule unless
ss lat
later
er chan
changed
ged in
(23) Defined Cost is
. the amount of payments due to Subcontractors for work which is subcon-
tracted without taking account of amounts deducted for
. retention,
. payment
pay ment to the Employer as a res result
ult of the Sub
Subcon
contrac
tractor
tor failing
failing to
meet a Key Date, s
e e
the correction of Defects after Completion, r s
.
o u
. payments to Others and c a
l
c
. the supply of equipment, supplies and services included in the charge
for overhead cost within the Working Areas in this contract
and s
e
s
. the cost of components in the Schedule of Cost Components for other u
in la
work a c
mn
less Disallowed Cost. io
t
p
(25) Disallowed Cost is cost which the Project Manager decides o
. is not justified by the Contractor’s accounts and record
records,
s, s
y e
. should not have been paid to a Subcontractor or supplier in accordance r s
a u
with his contract, d a
l
was incurred only because the Contractor did not n c
.
o n
c o
e it
. follow an acc
follow accept
eptance
ance or pro
procur
cureme
ement
nt pro
proced
cedure
ure sta
stated
ted in the Wor
Works
ks s
p
Information or o
. give an early warning which this contract required him to give
s
t
and the cost of n
t e
. correcting Defects after Completion, s n
o o
. corre
cor recti
cting
ng DefDefect
ectss cau
causesed
d by th the
e Contractor no nott co
comp
mply
lyin
ing
g wiwith
th a c p
m
cons
co nstrtrai
aint
nt on ho howw he is to Pr Prov
ovid
idee ththe
e Wo
Work
rkss st
stat
ated
ed in th
thee Wo
Work
rks
s o
c
Information,
. Plant
Pla nt and Mate Materia
rials
ls not used to Pro Provid
videe the Works (after allowing
allowing for
reas
re ason
onabl
ablee wa
wast
stage
age)) unl
unles
esss re
resu
sult
ltin
ing
g frfrom
om a ch chang
angee to th
thee Wo
Work
rks
s
Information, t
c
.
resources not used to Provide the Works (after allowing for reasonable ra
t a
t
availab
ava ilabili
ility
ty and uti
utilis
lisati
ation)
on) or not taktakenen awa
awayy fro
from
m the Wor
Workin
kingg Are
Areas
as n a
o d
when the Project Manager requested and c
. prepara
prep aratio
tionn for and conconduc
ductt of an adj
adjudi
udicat
cation
ion or pro
procee
ceedin
dings
gs of the
tribunal.
(29) Th
(29) Thee Pr
Pric
ice
e fo
forr Wo
Work
rk Do
Done
ne to Da
Date
te is th
the
e to
tota
tall De
Define
fined
d Co
Cost
st wh
whic
ich
h th
the
e
Projectt Mana
Projec ger forecasts will have been paid by the Contractor befor
Manager before
e the
next assessment date plus the Fee.
(30) The Prices
(30) Prices ar
are
e th
the
e lu
lump
mp su
sum
m pr
pric
ices
es fo
forr ea
each
ch of th
the
e ac
acti
tivi
viti
ties
es on th
the
e
Activity
Activity Schedule unless later changed in accord
accordance
ance with this contract.
contract.
Provid
Providing
ing the Wor
Works
ks 20
20.3 The Contractor advises the Project Mana ger on the practical implications of
Manager
the design of the works and on subcontracting arrangements.

®
2 0 .4 The Contractor prepares forecasts of the total Defined Cost for the whole of
the works in con
consul
sultat
tation
ion wit
withh the Project Mana ger and su
Manager subm
bmit
its
s th
them
em to
the Project Mana
Managerger. For
Foreca
ecasts
sts are pre
prepar
pared
ed at the interval
intervals
s sta
stated
ted in the
Contrac
Contractt Dat
Data
a fro
from
m the start ing date unt
starting until
il Com
Comple
pletio
tion
n of the whole of the
works. An expl
explanat
anation
ion of the changes
changes mad
made e sin
since
ce the previous
previous for
foreca
ecast
st is
submitted with each forecast.
Subcontra
Subcontracting
cting 26
2 6 .4 The Contractor submits the proposed contract data for each subcontract for
ance to the Project Manager if
acceptance
accept
. an NEC contract is proposed and
. the Project Manager instructs the Contractor to make the submission.
A reason for not accepting the proposed contract data is that its use will not
allow the Contractor to Provide the Works.
s
e e
r s The programme 31
o u
c la 3 1 .4 The Contractor pro
provide
vides
s inf
inform
ormati
ation
on whi
which
ch sho
shows
ws how eac
each
h act
activi
ivity
ty on the
c Activi
Activity
ty Sch
Schedul
edule
e rel
relate
atess to the ope
operat
ration
ions
s on eac
each
h pro
program
gramme
me whiwhich
ch he
submits for acceptance.
s Accele
Accelerat
ration
ion 36
e
s 3 6 .3 Whe
hen
n th
the Proje
Project
ct Manag er acc
Manager accep
epts
ts a quota
quotati
tion
on fo
forr an acc
accel
eler
erat
atio
ion,
n, he
u
i a
n l changes the Prices, the Completion Date and the Key Dates accordingly and
a c accepts the revised programme.
mno
ti
p Tests and inspections 40
o 40.
0.7
7 Whe
henn the Project Mana
the Manager
ger ass
assess
esses
es the cos
costt incu
incurred by the Employer in
rred
s repeating a test or inspection after a Defect is found, the Project Mana
Manager
ger
y e
r s does
do es no
nott in
incl
clude
ude th
the
e Contractor’s co
cost
st of ca
carr
rryi
ying
ng out the re
repe
peat
at te
test
st or
a u
d la inspection.
n c
o n
c Assessing
Assessing the amou
amount
nt due
due 50
e ito
s 50.6
50.6 Payments
Payment s of Defi
Defined
ned Cos
Costt made
made byby the
the Contractor in a currency other than the
p
o
currency of this contract are included in the amount due as payments to be
made
ma de to hi
him
m in ththe
e sa
same
me cu
curr
rren
ency
cy.. Su
Such
ch pa
payme
ymentnts
s ar
are
e co
conve
nvert
rted
ed to th
the
e
ts currency
currency of this contra ct in order to calculate the Fee and any Contractor’s
contract
n
t e share using the exchange rates.
s n
o o
c p Defined
Defined Cos
Costt 52
m
o 52.2 The Contractor keeps these records
c
. accounts of payments of Defined Cost,
. proof that the payments have been made,
t . communi
com municat
cations
ions abo
about
ut and ass
assess
essment
mentss of com
compens
pensati
ation
on eve
events
nts for
c
tra ta
a
Subcontractors and
other records as stated in the Works Information.
n d .
o
c
5 2 .3 The Contractor allo
allows
ws the Project Manag er to insp
Manager inspec
ectt at any ti
time
me wi
with
thin
in
working hours the accounts and records which he is required to keep.
The Contractor’s sh
shar
are
e 53
5 3 .1 The Proj
Project
ect Mana
Managerger asse
assesse
ssess the Contractor’s shshar
are
e of th
the
e di
diff
ffer
eren
ence
ce
between the total of the Prices and the Price for Work Done to Date. The differ-
ence is divided into increments falling within each of the share range
ranges s. The
limits of a share range are the Price for Work Done to Date divided by the
total of the Prices, expressed as a percentage. The Contractor’s share equals
the sum of the products of the increment within each share range and the
corresponding Contractor’s share percentage.
53.2
53.2 If the Price
Price for Work
Work Done to Date
Date is leless
ss than
than th
the
e total
total of th
the
e Prices
Prices,, the
Contractor is paid his share of the saving. If the Price for Work Done to Date is
greater
grea ter than the tot
total
al of the Pri
Prices
ces,, the Contractor pay
pays
s hi
his
s sh
shar
are
e of ththe
e
excess.

®
Main Option Clauses
5 3 .3 The Project Mana ger mak

Manager makes
es a pre
prelim
limina
inary
ry ass
assess
essmen
mentt of the Contractor’s
share at Completion of the whole of the works using his forecasts of the final
Price for Work Done to Date and the final total of the Prices. This share is
included in the amount due following Completion of the whole of the works.
Manager makeses a fina
finall as
asse
sess
ssme
ment
nt of th
the
e Contractor’s sha
share
re
using the final Price for Work Done to Date and the final total of the Prices.
This share is included in the final amount due.
The Activity Schedule 54

54.1 Information
Information in the Activity
Activity Schedule is not Works Informat
Information
ion or Site Informati
Information.
on.
5 4 .2 If the Contractor changes a planned method of working at his discretion so
that the activities on the Activity Schedule do not relate to the operations on
the Accepted Programme, he submits a revision of the Activity Schedule to the
Project Manager for acceptance.
s
54.3 A reason
reason for not accepting
accepting a revision
revision of the Activity
Activity Schedul
Schedule
e is that
that e e
r s
o u
. it does not comply with the Accepted Programme, c a
l
c
. any changed Prices are not reasonably distributed between the activities
or
. the total of the Prices is changed.
s
e
s
Assessing compensation 63 u
events 63.11
63.11 If the effect
compensation
ion event
event is to red
reduce
uce the total
total Defined Cost
Cost and i la
n
a c
the event is mn
io
t
. a change to the Works Information, other than a change to the Works p
Information provided by the Employer which the Contractor proposed and o
the Project Manager has accepted or s
a correction of an assumption stated by the Project Manager for asses- y e
.
r s
sing an earlie
earlierr compen
compensation
sation event, a u
d a
l
n c
reduced.
ed. o n
c o
e it
63.12
63.12 Assess
Assessment
mentss for changed
changed Pri
Prices
ces for com
compens
pensati
ation
on eve
events
nts are in the form of s
p
o
changes to the Activity Schedule.
63.14
63.14 If the Project Manager and the Contractor agree, rates and lump sums may be s
t
used to assess a compensation event. n
t e
63.1
63.15
5 If the
the Project Manag
Managerer and the Contractor agree, the Contractor assesses a s n
o o
c p
compens
com pensati
ation
on eve
event
nt usi
using
ng the Sho
Shorte
rterr Sch
Schedu
edule
le of Cos
Costt Com
Compone
ponents
nts.. The m
Project Manager may make his own assessments using the Shorter Schedule o
c
of Cost Components.
Implementing 65
t
65.4
.4 The ch
The chan
ange
gess to th
the
e Pr
Pric
ices
es,, th
the
e Co
Comp
mple
leti
tion
on Da
Date
te an
andd th
the
e Ke
Keyy Da
Date
tes
s ar
are
e c
included
included in the notific
notification
ation implementing
compensation
ation event. ra
t a
t
n a
o d
c
Payment
Payment on term
terminat
ination
ion 93
93.4
93.4 If the
there
re is a termi
terminat
nation
ion,, the
the Project Manager assesses the Contractor’s share
after he has certified termination. His assessment uses, as the Price for Work
Done to Date, the total of the Defined Cost which the Contractor has paid and
which he is committed to pay for work done before termination. The assess-
ment uses as the total of the Prices
. the lump sum price for each activity which has been completed and
. a proportion of the lump sum price for each incomplete activity which is
the proportion of the work in the activity which has been completed.
9 3 .6 The Project Manager’s assessment of the Contractor’s share is added to the
amount due to the Contractor on termination if there has been a saving or
deducted if there has been an excess.

®
Option D: Target contract with bill of quantities

terms 11
11.2
.2 (21) The Bil
(21) Billl of Quan
Quanti
titi
ties
es is the
the bill of quantities as changed in accordance
with this contract to accommodate implemented compensation events and for
accepted quotations for acceleration.

(23) Defined Cost is
. the amount of payments due to Subcontractors for work which is subcon-
tracted without taking account of amounts deducted for
. retention,
. payment
ult of the Subcontra
Subcontracto
ctorr fai
failin
ling
g to
s
e e meet a Key Date,
r s
o u . the correction of Defects after Completion,
c la
c . payments to Others and
. the supply of equipment, supplies and services included in the charge
for overhead cost within the Working Areas in this contract
s and
e
s
u . the cost of components in the Schedule of Cost Components for other
i a
n l
a c work
mno
ti
less Disallowed Cost.
p
o (25) Disallowed Cost is cost which the Project Manager decides
s . is not justified by the Contractor’s accounts and records,
e
ry s should not have been paid to a Subcontractor or supplier in accordance
.
a u
d la with his contract,
n c . was incurred only because the Contractor did not
o n
c
e ito follow an acc
follow accept
eptance
ance or pro
procur
cureme
ement
nt pro
proced
cedure
ure sta
stated
ted in the Wor
Works
ks
s .
p
o Information or
. give an early warning which this contract required him to give
ts and the cost of
n
t e
s n . correcting Defects after Completion,
o o
c p . correcting
correcting Defects caused by the Contractor not complying with a con-
m straint on how he is to Provide the Works stated in the Works Information,
o
c . Plant
Plant and Mat
Materi
erials
als not use
usedd to Pro
Provid
vide
e the Works (after allowing
allowing for
reasonable wastage) unless resulting from a change to the Works Infor-
mation,
t . resources not used to Provide the Works (after allowing for reasonable
c
tra ta
a
availa
ava ilabil
bility
ity and uti
utilis
lisati
ation)
on) or not tak
taken
en awa
awayy fro
from
m the Wor
Working
king Are
Areas
as
n d when the Project Manager requested and
o
c . prepara
prep aratio
tion
n for and con
conduc
ductt of an adj
adjudi
udicat
cation
ion or pro
procee
ceedin
dings
gs of the
tribunal.
(29) Th
(29) The
e Pr
Pric
ice
e fo
forr Wo
Work
rk Do
Done
ne to Da
Date
te is th
the
e to
tota
tall De
Define
fined
d Co
Cost
st wh
whic
ich
h th
the
e
Project Manager forecasts will have been paid by the Contractor before the next
assessment date plus the Fee.
(31) The Prices are the lump sums and the amounts obtained by multiplying
the rates by the quantities for the items in the Bill of Quantities .
(33) The Total of the Prices is the total of
. the quantity of the work which the Contractor has com complepleted
ted for eac
each
h
item in the Bill of Quantities multiplied by the rate and
. a pr
prop
oport
ortio
ion
n of ea each
ch lu
lump
mp susum
m whwhic
ich
h is th
thee pr
prop
opor
orti
tion
on of ththe
e wo
work
rk
covered by the item which the Contractor has completed.
Complet
Compl eted
ed wo
work
rk is wo
work
rk wi
witho
thout
ut De
Defe
fect
cts
s wh
whic
ich
h wo
woul
uld
d ei
eith
ther
er de
dela
layy or be
covered by immediately following work.

®
Main Option Clauses
Provid
Providing
ing the Wor
Works
ks 20
2 0 .3 The Contractor advises the Project Mana ger on the practical implications of
Manager
the works in consultation with the Project Manager and submits them to the
Projectt Mana
Projec ger. Fo
Manager Fore
reca
cast
sts
s are prprepa
epare
red
d at th the
e in
inte
terv
rval
als
s st
stat
ated
ed in th
thee
Contra
Con tract
ct Dat
Data
a fro
from
starting until
il Com
Comple
pletio
tion
works. An exp
explan
lanati
ation
on of the changes
changes mad
made e sin
since
ce the previous
previous for
foreca
ecast
st is
Subcontra
Subcontracting
cting 26
acceptance
acceptance to the Project Manager if
. the Project Manager instructs the Contractor to make the submission. s
e e
r s
A reason for not accepting the proposed contract data is that its use will not o u
c a
l
allow the Contractor to Provide the Works. c
Accele
Accelerat
ration
ion 36
3 6 .3 Whe
hen
n th
the Proje
Project
ct Manag er acc
Manager accep
epts
ts a quota
quotati
tion
on fo
forr an ac
acce
cele
lerat
ratio
ion,
n, he s
changes the Prices, the Completion Date and the Key Dates accordingly and e
s
u
accepts the revised programme. i la
n
a c
mn
Tests and inspections 40 io
t
40.7
40.7 Whe
hen
n th
thee Project Mana ger ass
Manager assess
esses
es the cos
costt incu
incurre
rred
d by the Employer in p
repeating a test or inspection after a Defect is found, the Project Mana
Manager
ger o
does
do es not inc
inclu
lude
de th
the
e Contractor’s co
cost
st of ca
carr
rryi
ying
ng ou
outt th
the
e re
repea
peatt te
test
st or s
inspection. y e
r s
a u
d a
l
Assessing
Assessing the amou
amount
nt due
due 50 n c
o n
50.6
50.6 Payments
Payment s of Defi
Defined
ned Cos
Costt made
made by
by the
the Contractor in a currency other than the c o
e it
ncy of this contract are included in the amount due as payments to be
currency
curre s
p
made
ma de to hi
him
m in th
the
e sa
same
me cucurr
rren
ency.
cy. Su
Such
ch pa
payme
yments
nts ar
are
e co
conv
nvert
erted
ed to th
the
e o
ncy of this contract in order to calculate the Fee and any Contractor’s
currency
curre
share using the exchange rates. s
t
n
t e
Defined
Defined Cos
Costt 52 s n
o o
5 2 .2 The Contractor keeps these records c p
m
o
. accounts of payments of Defined Cost, c
. proof that the payments have been made,
. communi
com municat
cations
ions abo
about
ut and ass
assess
essment
mentss of com
compens
pensati
ation
on eve
events
nts for
Subcontractors and t
c
.
other records as stated in the Works Information. ra
t a
t
n a
allows
ws the Project Manag
Managerer to in
insp
spec
ectt at any ti
time
me wi
with
thin
in o d
c
working hours the accounts and records which he is required to keep.
The Contractor’s sh
shar
are
e 53
5 3 .5 The Proj
Project
ect Mana
Managerger asse
assesse
ssess the Contractor’s shshar
are
e of th
the
e di
diff
ffer
eren
ence
ce
betw
be twee
eenn th
the
e To
Tota
tall of th
the
e Pr
Pric
ices
es an
and
d th
the
e Pr
Pric
ice
e fo
forr Wo
Work
rk Do
Done
ne to Da
Date
te.. Th
The
e
difference is divided into increments falling within each of the share ranges.
The limits of a share range are the Price for Work Done to Date divided by the
Total of the Prices, expressed as a percentage. The Contractor’s share equals
the sum of the products of the increment within each share range and the
corresponding Contractor’s share percentage.
53.6
53.6 If the Pric
Price
e for Work Done
Done to Date is less
less than the Total
Total of the Price
Prices,
s, the
Contractor is paid his share of the saving. If the Price for Work Done to Date is
greate
gre aterr tha
thann the Total of the Prices,
Prices, the Contractor paypays
s his share
share of th
the
e
excess.

®
5 3 .7 The Projec
Projectt Manager mak
Manager makes
es a pre
prelim
limina
inary
ry ass
assess
essmen
mentt of the Contractor’s
share at Completion of the whole of the works using his forecasts of the final
Price for Work Done to Date and the final Total of the Prices. This share is
included in the amount due following Completion of the whole of the works.
Manager makeses a fina
finall as
asse
sess
ssme
ment
nt of th
the
e Contractor’s sha
share
re
using the final Price for Work Done to Date and the final Total of the Prices.
This share is included in the final amount due.
The Bill of Quantities 55

55.1
55.1 Informatio
Information
n in the Bill
Bill of Qua
Quanti
ntitie
ties
s is not Wor
Works
ks Informat
Information
ion or Site Inform
Informa-
a-
tion.
Compensa
Compensation
tion event
events
s 60
60.4
60.4 A differen
difference
ce between
between the final
final total quanti
quantityty of work done
done and the quantity
quantity
stated for an item in the Bill of Quantities is a compensation event if
s
e e
r s . the difference does not result from a change to the Works Information,
o u
c la . the difference causes the Defined Cost per unit of quantity to change
c
and
. the rate in the Bill of Quantities for the item multiplied by the final total
quantity of work done is more than 0.5% of the total of the Prices at the
s Contract Date.
e
s
u
i a
n l If th
the
e De
Define
fined
d Co
Cost
st pe
perr un
unit
it of qu
quant
antit
ityy is re
reduc
duced
ed,, th
the
e af
affe
fecte
cted
d ra
rate
te is
a c reduced.
mno
ti 60.5
60.5 A differe
difference
nce betwee
between
n the final total
total quantit
quantityy of work done
done and the quantit
quantityy for
p
o an
ing item
of thestated in the
Condition Bill offor
stated Quantities which
a Key Date delays Completion
is a compensation event.or the meet-
s
y e 6 0 .6 The Project Mana ger cor
Manager correc
rects
ts mis
mistak
takes
es in the Bil
Billl of Qua
Quanti
ntitie
ties
s whi
which
ch are
r s
a u departures from the rules for item descriptions and for division of the work
d la
n c into
into it
items
ems in ththee meth
method
od of mea
measur
sureme nt or ar
ement are e du
duee to am
ambibigu
guit
itie
ies
s or
o n
c incons
inconsist
istenc
encies
ies.. Eac
Eachh suc
such
h cor
correc
rectio
tion
n is a com
compen
pensat
sation
ion eve
event
nt whi
which
ch may
e ito
s lead to reduce
reducedd Price
Prices.
s.
p
o
60.7
60.7 In as
asse
sess
ssin
ing
g a co
comp
mpen
ensa
sati
tion
on eveven
entt wh
whic
ich
h re
resu
sult
lts
s fr
from
om a co
corr
rrec
ecti
tion
on of an
incons
inconsist
istenc
encyy bet
betwee
ween
n the Bil
Billl of Qua
Quanti
ntitie
ties
s and anot
another
her doc
documen
ument,t, the
ts
n Contractor is assumed to have taken the Bill of Quantities as correct.
t e
s n
o o Assessing compensation 63
c p
m events 63.
63.11
11 If the effect
compensation
ion event
event is to red
reduce
uce the total Defined
Defined Cost and
o
c the event is
. a cha
change
nge to the Works Informa
Informatio
tion,
n, oth
other
er than a chan
change
ge to the Wor
Works
ks
Information provided by the Employer which the Contractor proposed and
t
c
tra ta
a
. the Project Manager
a correction has accepted
of an assumption or by the Project Manager for asses-
stated
n d
o sing an earli
earlier
er compensation event,
c
reduced.
ed.
63.13 Assessments
Assessments for changed Prices
Prices for compensation
compensation events are in the form of
changes to the Bill of Quantities.
. For the whole or a part of a compensation event for work not yet done
and for which there is an item in the Bill of Quantities, the changes are
. a changed rate,
. a changed quantity or
. a changed lump sum.
. For the whole or a part of a compensation event for work not yet done and
for which there is no item in the Bill of Quantities, the change is a new
priced item which, unless the Project Manager and the Contractor agree
otherwise, is compiled in accordance with the method of measurement.

®
Main Option Clauses
. For the whole or a part of a compensation event for work already done,
the change is a new lump sum item.
If the Project Manager and the Contractor agree, rates and lump sums may be
63.1
63.15
5 If the
the Project Manag
Managerer and the Contractor agree, the Contractor assess
assesseses a
compens
com pensati
ation
on eve
event
nt usi
using
ng the Sho
Shorte
rterr Sch
Schedu
edule
le of Cos
Costt Com
Compone
ponents
nts.. The
Project Manager may make his own assessments using the Shorter Schedule
of Cost Components.
Implementing 65
65.4
.4 The ch
The chan
ange
gess to th
the
e Pr
Pric
ices
es,, th
the
e Co
Comp
mple
leti
tion
on Da
Date
te an
andd th
the
e Ke
Keyy Da
Date
tes
s ar
are
e
included
included in the notific
notification
ation implementing
compensation
ation event.
Payment
Payment on termi
terminati
nation
on 93
93.5
93.5 If the
there
re is a termi
terminat
nation,
ion, the Project Manager assesses the Contractor’s share s
e e
after he has certified termination. His assessment uses, as the Price for Work r s
o u
Done to Date, the total of the Defined Cost which the Contractor has paid and c a
l
c
which he is committed to pay for work done before termination.
9 3 .6 The Project Manager’s assessment of the Contractor’s share is added to the
amounts due to the Contractor on termination if there has been a saving or s
e
deducted if there has been an excess. s
u
in la
a c
mn
io
t
p
o
s
y e
r s
a u
d a
l
n c
o n
c o
e it
s
p
o
s
t
n
t e
s n
o o
c p
m
o
c
t
c
ra
t a
t
n a
o d
c

®
Option E: Cost reimbursable contract

terms 11
11.2
.2 (23)) De
(23 Defin
fined
ed Co
Cost
st is
.
the amount
tracted of payments
without due toof
taking account Subcontractors for work
amounts deducted for which is subcon-
. retention,
. payment
Subcontracto
ctorr fai
failin
ling
g to
meet a Key Date,
. the correction of Defects after Completion,
s
. payments to Others and
e e the supply of equipment, supplies and services included in the charge
r s .
o u for overhead cost within the Working Areas in this contract

c la
c
and
. the cost of components in the Schedule of Cost Components for other
s work
e
s
u less Disallowed Cost.
i a
n l
a c (25) Disallowed Cost is cost which the Project Manager decides
mno
ti . is not justified by the Contractor’s accounts and records,
p
.
o should not have been paid to a Subcontractor or supplier in accordance

with his contract,
s was incurred only because the Contractor did not
y e .
r s
a u
d la
. follow an acc
follow accept
eptance
ance or pro
procur
cureme
ement
nt pro
proced
cedure
ure sta
stated
ted in the Wor
Works
ks
n c Information or
o n
c give an early warning which this contract required him to give
ito
.
e
s
p
o and the cost of
. correcting Defects after Completion,
ts . correcting Defects caused by the Contractor not complying with a const-
n
t e raint on how he is to Provide the Works stated in the Works Information,
s n Plant
Plant and Mat Materi
erials
als not use
usedd to Pro
Provid
vide
e the Works (after allowing
allowing for
o o .
c p
m reasonable wastage) unless resulting from a change to the Works Infor-
o mation,
c
. resources not used to Provide the Works (after allowing for reasonable
availa
ava ilabil
bility
ity and uti
utilis
lisati
ation)
on) or not tak
taken
en awa
awayy fro
from
m the Wor
Working
king Are
Areas
as
when the Project Manager requested and
t
c .
tra ta
a
prepara
prep aratio
tribunal.tion
n for and con
conduc
ductt of an adj
adjudi
udicat
cation
ion or pro
procee
ceedin
dings
gs of the
n d
o
c (29) Th
(29) Thee Pr
Pric
ice
e fo
forr Wo
Work
rk Do
Done
ne to Da
Date
te is th
the
e to
tota
tall De
Define
fined
d Co
Cost
st wh
whic
ich
h th
the
e
Projectt Mana
Projec ger forecasts will have been paid by the Contractor before the
Manager
next assessment date plus the Fee.
(32) The Prices are the Defined Cost plus the Fee.
Provid
Providing
ing the Wor
Works
ks 20
Manager
Project Manag er. Fo
Manager Fore
reca
cast
sts
s ar
are
e pr
prep
epar
ared
ed at th the
e in
inte
terv
rval
als
s st
stat
ated
ed in th
thee
Contrac
Cont ractt Dat
Data
a fro
from
starting until
il Com
Comple
pletio
tion
works. An expl
explanat
anation
ion of the changes
changes mad
made e sin
since
ce the previous
previous forecast
forecast is

®
Main Option Clauses
Subcontra
Subcontracting
cting 26
acceptance
Accele
Accelerat
ration
ion 36
3 6 .4 Whe
hen
n th
the Proje
Project
ct Manag er acc
Manager accep
epts
ts a quo
quota
tati
tion
on fo
forr an ac
acce
cele
lerat
ratio
ion,
n, he
changes
changes the Com
Comple
pletio
tion
n Dat
Date,
e, the Key Dates and the forecast
forecast of the total
Defined Cost of the whole of the works accordingly and accepts the revised
programme.
Tests and inspections 40 s

e e
40.7
40.7 Whe
henn the Project Mana ger ass
Manager assess
esses
es the cos
costt incu
incurre
rred
d by the Employer in r s
o u
repeating a test or inspection after a Defect is found, the Project Mana
Manager
ger c a
l
c
does
do es no
nott in
incl
clud
ude
e th
the
e Contractor’s co
cost
st of ca
carr
rryi
ying
ng ou
outt th
the
e re
repea
peatt te
test
st or
inspection.
Assessing
Assessing the amou
amount
nt due
due 50 s
e
s
50.7
50.7 Payments
Paymen ts of
of Define
Definedd Cost
Cost mad
madee by the Contractor in a currency other than the u
cy of this contract are included in the amount due as payments to be
currency
curren i la
n
a c
made
ma de to hi
him
m in ththe
e sa
same
me cucurr
rren
ency.
cy. Su
Such
ch pa
payme
yments
nts ar
are
e co
conve
nvert
rted
ed to th
the
e mn
curren
currency
cy of thi
this
s con tractt in or
contrac orde
derr to ca
calc
lcul
ulat
ate
e th
the
e Fe
Fee
e us
usin
ing
g th
the
e exchange io
t
p
rates. o
Defined
Defined Cos
Costt 52 s
y e
5 2 .2 The Contractor keeps these records r s
a u
d a
l
. accounts of payments of Defined Cost, n c
o n
. proof that the payments have been made, c o
e it
communi
com municat
cations
ions abo
about
ut and assassess
essment
mentss of com
compens
pensati
ation
on eve
events
nts for s
.
p
Subcontractors and o
. other records as stated in the Works Information.
s
t
allows
Manager inspec
ectt at any ti
time
me wi
with
thin
in n
working hours the accounts and records which he is required to keep. t e
s n
o o
c p
Assessing compensation 63 m
o
events 63
63.1
.14
4 If th
the
e Project Manager and the Contractor agree, rates and lump sums may be c
63.1
63.15
5 If the
the Project Manager and the Contractor agree, the Contractor assess
Manager assesses
es a
t
c
compens
com pensati
Project ation
on eve
Managerevent
nt usi
may using
ng his
make theown
Shorte
Shorterr Sch
Schedu
edule
assessments leusing
of Cos
Costt Com
the Compone
ponents
Shorter nts.. The
Schedule ra
t a
t
n a
of Cost Components. o d
c
Implementing 65
compensation events 65.
65.3
3 The change
changess to the forecast
forecast amount
amount of the Price
Prices,
s, the Comple
Completio
tion
n Date and
the Key Dates are included in the notification implementing a compensation
event.

®
Option F: Management contract

terms 11
11.2
.2 (24)) De
(24 Defin
fined
ed Co
Cost
st is
.
the amount
tracted of payments
without due toof
taking account Subcontractors for work
amounts deducted for which is subcon-
. retention,
. payment
Subcontracto
ctorr fai
failin
ling
g to
meet a Key Date,
. the correction of Defects after Completion,
s
. payments to Others,
e e the supply of equipment, supplies and services included in the charge
r s
.
o u for overhead cost within the Working Areas in this contract

c la
c
and
. the prices for work done by the Contractor himself
s
e less Disallowed Cost.
s
u
i a
n l (26) Disallowed Cost is cost which the Project Manager decides
a c
mno
. is not justified by the accounts and records provided by the Contractor,
ti . should not have been paid to a Subcontractor or supplier in accordance
p
o with his contract,
. was incurred only because the Contractor did not
s
y e
r s . follow an acc
follow accept
eptance
ance or pro
procur
cureme
ement
nt pro
proced
cedure
ure sta
stated
ted in the Wor
Works
ks
a u
d la Information or
n c give an early warning which this contract required him to give or
o n
.
c
e ito is a payment to a Subcontractor for
s .
p
o
. work which the Contract Data states that the Contractor will do himself
or
ts . the Contractor’s manageme
management.
nt.
n
t e
s n (29) Th
(29) The
e Pr
Pric
ice
e fo
forr Wo
Work
rk Do
Done
ne to Da
Date
te is th
the
e to
tota
tall De
Define
fined
d Co
Cost
st wh
whic
ich
h th
the
e
o o
c p Project Mana ger forecasts will have been paid by the Contractor before the
Manager
m
o next assessment date plus the Fee.
c
(32) The Prices are the Defined Cost plus the Fee.
t Provid
Providing
ing the Wor
Works
ks 20
c
tra ta
a
2 0 .2 T he Contractor
and the con
constr manages
struct
uction
ion and
Contractor’s design, the provision of Site services
theinst
install
allati
ation
on of the works. The Contractor subcon-
n d
o trac
tracts
ts th
the
e Contractor’s de desi
sign
gn,, th
thee pr
prov
ovis
isio
ion
n of SiSite
te se
serv
rvic
ices
es anand
d ththe
e
c
constru
cons tructi
ction
on and ins
instal
tallat
lation
ion of the works exc
except
ept wor
workk whi
which
ch the Con
Contra
tract
ct
Data states that he will do himself.
Manager
Project Manag er. Fo
Manager Fore
reca
cast
sts
s ar
are
e pr
prep
epar
ared
ed at th the
e in
inte
terv
rval
als
s st
stat
ated
ed in th
thee
Contrac
Cont ractt Dat
Data
a fro
from
starting until
il Com
Comple
pletio
tion
works. An expl
explanat
anation
ion of the changes
changes mad
made e sin
since
ce the previous
previous forecast
forecast is

®
Main Option Clauses
20.5
20.5 If wo
work
rk wh
whic
ich
h the
the Contractor is to do himself is affected by a compensation
event, the Project Manager and the Contractor agree the change to the price
for the work and any change to the Completion Date and Key Dates. If they
cannot agree, the Project Manager decides the change.
Subcontra
Subcontracting
cting 26
acceptance
.
an NEC contract is proposed and
Accele
Accelerat
ration
ion 36
3 6 .4 Whe
hen
n th
the Proje
Project
ct Manag er acc
Manager accep
epts
ts a quo
quota
tati
tion
on fo
forr an ac
acce
cele
lerat
ratio
ion,
n, he s
e e
changes
changes the Com
Comple
pletio
tion
n Dat
Date,
e, the Key Dates and the forecast
forecast of the total r s
o u
Defined Cost of the whole of the works accordingly and accepts the revised c a
l
c
programme.
Assessing
Assessing the amou
amount
nt due
due 50
50.7
50.7 Payments
Paymen ts of
of Define
Definedd Cost
Cost mad
madee by the Contractor in a currency other than the s
e
s
cy of this contract are included in the amount due as payments to be
currency
curren u
made
ma de to hihim
m in ththe
e sa
same
me cucurr
rren
ency.
cy. Su
Such
ch pa
payme
yments
nts ar
are
e co
conve
nvert
rted
ed to th
the
e i la
n
a c
curren
currency
cy of thi
this
s con tractt in or
contrac orde
derr to ca
calc
lcul
ulat
ate
e th
the
e Fe
Fee
e us
usin
ing
g th
the
e exchange mn
rates. io
t
p
Defined
Defined Cos
Costt 52 o
5 2 .2 The Contractor keeps these records s
y e
r s
. accounts of payments of Defined Cost, a u
d a
l
. proof that the payments have been made, n c
o n
. communi
com municat
cations
ions abo
about
ut and assassess
essment
mentss of com
compens
pensati
ation
on eve
events
nts for c o
e
Subcontractors and s ti
p
. other records as stated in the Works Information. o

allows
Manager inspec
ectt at any ti
time
me wi
with
thin
in s
t
working hours the accounts and records which he is required to keep. n
t e
s n
Assessing compensation 63 o o
c p
events 63
63.1
.14
4 If th
the
e Project Manager and the Contractor agree, rates and lump sums may be m
o
used to assess a compensation event. c
Implementing 65
compensation events 65.
65.3
3 The change
changess to the forecast
forecast amount
amount of the Price
Prices,
s, the Comple
Completio
tion
n Date and t
c
the Key Dates are included in the notification implementing a compensation ra
t a
t
event. n a
o d
c

DISPUTE RESOLUTION
Option W1
Dispute resolution procedure (used unless the United Kingdom Housing Grants, Construction and Regeneration Act
1996 applie
applies).
s).
Disput
Dispute
e reso
resolut
lution
ion W1
s W1.1
W1.1 A dispute
dispute arising
arising under or in connecti
connection
on with this
this contract
contract is referr
referred
ed to and
e e
r s decided by the Adjudicator.
o u
c la
c
The Adjudicator W1.
W1.2
2 (1) The Par
Partie
ties
s appoi
appoint
nt the Adjudicator under the NEC Adjudicator’s Contract
current at the starting date.
s (2) The Adjudicator acts impartially and decides the dispute as an indepen-
e
s dent adjudicator and not as an arbitrator.
u
i a
n l (3) If the Adjudicator is not identified in the Contract Data or if the Adjudicator
a c
mno
resigns or is unable to act, the Parties choose a new adjudicator jointly. If the
ti Parties have not chosen an adjudicator, either Party may ask the Adjudicator
p
o nominating body to choose one. The Adjudicator nominating body chooses an
adjudicator within four days of the request. The chosen adjudicator becomes
s the Adjudicator.
y e
r s
a u (4) A replacement Adjudicator has the power to decide a dispute referred to
d la
n c his predecessor but not decided at the time when the predecessor resigned or
o n
c became unable to act. He deals with an undecided dispute as if it had been
e ito
s referred to him on the date he was appointed.
p
o
(5) The Adjudicator, his employees and agents are not liable to the Parties
for any action or failure to take action in an adjudication unless the action or
ts
n failure to take action was in bad faith.
t e
s n
o o The adjudication W1.3
W1.3 (1) Dispu
Disputes
tes are
are notifie
notified
d and refer
referred
red to
to the Adjudicator in accordance with
c p
m the Adjudication Table.
o
c
t
c
tra ta
a
n d
o
c

®
Dispute Resolution
ADJUDICATION TABLE
Dispute about Which Party may When may it be referred to the

refer it to the Adjudicator?
Adjudicator?
An action of the The Contractor Between two and four weeks

Between
Project Manager or after the Contractor’s
the Supervisor notification

Employer andof the
the Project
dispute to the
Manager, the notification
notification itself
being made not more than four
weeks after the Contractor
becomes aware of the action
The Project Manager The Contractor Between two and four weeks
Between s
e e
or Supervisor not after the Contractor’s r s
o u
having taken an notification of the dispute to the c a
l
c
action Employer and the Project
Manager, the notification
notification itself
being made not more than four
s
weeks after the Contractor e
s
becomes aware that the action u
was not taken in la
a c
mn
io
t
A quotation for a The Employer Between
Between two and four weeks p
compensation event after the Project Manager’s o
which is treated as notification of the dispute to the
s
having been Employer and the Contractor, e
y
r s
accepted the notification itself being a u
d a
l
made not more than four weeks n c
after the quotat
quotation
ion was treat
treated
ed o n
c o
e it
as accepted s
p
o
Any other matt
tte
er Either Party Between two anand
d four weeks
after notification
notification of the dispute s
t
to the other Party and the n
t e
Project Manager s n
o o
c p
m
o
(2) The times for notifying and referring a dispute may be extended by the c
Project Manager if the Contractor and the Project Manager agree to the exten-
sion
sion bef
before
ore the not
notice
ice or ref
referr
erral
al is due
due.. The Project Manager notifie
Manager notifiess the
extension that has been agreed to the Contractor. If a disputed matter is not t
c
notified and referred within the times set out in this contract, neither Party may ra
t a
t
subsequently refer it to the Adjudicator or the tribunal. n a
o d
(3) The Party referring the dispute to the Adjudicator includes with his referral c
information to be considered by the Adjudicator. Any more information from a
Party to be considered by the Adjudicator is provided within four weeks of the
referral. This period may be extended if the Adjudicator and the Parties agree.
(4) If a ma
(4) matt
tter
er di
disp
spute
uted
d by th e Contractor und
the under
er or in co
conne
nnect
ctio
ion
n wi
with
th a
subcontract
subcont ract is also a matter disputed under or in connection with this contract
and if the subcontract allows, the Contractor may refer the subcontract dis-
pute to the Adjudicator at the same time as the main contract referral. The
Adjudicator then decides the disputes together and references to the Parties
for the purposes of the dispute are interpreted as including the Subcontractor.

®
(5) The Adjudicator may

. review
review and re revi
vise
se any act
actio
ionn or ininac
acti
tion
on of th
thee Projec
Projectt Mana ger or
Manager
Supervisor related to the dispute and alter a quotation which has been
treated
treate d as having been accepted,
. take
tak e the initiati
initiative
ve in asc
ascert
ertain
aining
ing the facts and the law rel related
ated to the
dispute,
. instru
instruct
ct a Par
Party
ty to pro
provid
vide
e fur
furthe
therr inf
inform
ormati
ation
on rel
relate
ated
d to the dis
dispute
pute
within a stated time and
.
instruct a Party to take any other action which he considers necessary to
reach his decision and to do so within a stated time.
(6) A communication between a Party and the Adjudicator is communicated to
the other Party at the same time.
(7) If the Adjudicator’s dec
decisi
ision
on inc
include
ludes
s ass
assess
essmen
mentt of add
additi
itiona
onall cos
costt or
delay caused to the Contractor, he makes his assessment in the same way as
s
e e a compens
compensation
ation event is asses
assessed.
sed.
r s
o u
c la (8) ThThe
e Adjudicator de
decid
cides
es the dispute
dispute and notnotifie
ifies
s the Parties
Parties and the
c
Project Manager of his decision and his reasons within four weeks of the end
of the period for receiving information. This four week period may be extended
if the Parties agree.
s
e (9) Unless and until the Adjudicator has notified the Parties of his decision,
s
u
i a
n l the Parties, the Project Manager and the Supervisor proceed as if the matter
a c disputed
disputed was not disputed.
mno
ti (10)) The Adjudicator’s dec
(10 decisi
ision
on is bin
binding
ding on the Parties
Parties unle
unless
ss and until
p
o revised by the tribunal and is enforceable as a matter of contractual obligation
between the Parties and not as an arbitral award. The Adjudicator’s decision
s is final and bin
bindin
ding
g if nei
neither
ther Party
Party has notified
notified the other within
within the times
y e
r s required by this contract that he is dissatisfied with a decision of the Adjudica-
a u
d la tor and intends to refer the matter to the tribunal.
n c
o n
c (11) The Adjudicator may
(11) may,, wi
with
thin
in tw
two
o we
week
eks
s of gi
givi
ving
ng hi
his
s de
deci
cisi
sion
on to th
the
e
e ito
s Parties,
Parties, corre
correct
ct any cleri
clerical
cal mista
mistake
ke or ambigu
ambiguity.
ity.
p
o
Review by the tribunal W1.4
W1.4 (1) A Pa
(1) Part
rtyy do
does
es no
nott re
refe
ferr an
anyy di
disp
sput
ute
e un
unde
derr or in co
conn
nnec
ecti
tion
on wi
with
th th
this
is
ts contract to the tribunal unless it has first been referred to the Adjudicator in
n
t e accordance
accordance with this contra
contract.
ct.
s n
o o (2) If, after the Adjudicator notifies his decision a Party is dissatisfied, he may
c p
m notify the other Party that he intends to refer it to the tribunal. A Party may not
o
c refe
referr a di
disp
sput
ute
e to the tribunal unle
unless
ss thi
this
s not
notifica
ificatio
tion
n is giv
given
en wit
within
hin fou
fourr
weeks of notification of the Adjudicator’s decision.
(3) If the Adjudicator does not notify his decision within the time provided by
t
c
ta
r ta
a
this contract,
dispute to the atribunal
Party .may notify
A Party thenot
may other Party
refer that hetointends
a dispute to refer
the tribunal the
unless
n d
o this notification is given within four weeks of the date by which the Adjudicator
c
should have notifie
notifiedd his decision.
(4) The tribunal settles the dispute referred to it. The tribunal has the powers
to reconsider any decision of the Adjudicator and review and revise any action
or inaction of the Project Manager or the Supervisor related to the dispute. A
Party is not limited in the tribunal proceedings to the information, evidence or
arguments put to the Adjudicator.
(5) If the tribunal is arbitration, the arbitration procedure, the place where the
arbitration is to be held and the method of choosing the arbitrator are those
stated in the Contract Data.
(6) A Party does not call the Adjudicator as a witness in tribunal proceedings.

®
Dispute Resolution
Option W2
Dispute resolution procedure (used in the United Kingdom when the Housing Grants, Construction and Regeneration
Act 1996 applies).
Disput
Dispute
e resol
resoluti
ution
on W2
W2.1
W2.1 (1) A dispute
dispute arising
arising under or in connectio
connection
n with this contrac
contractt is ref
referr
erred
ed to
and decided by the Adjudicator. A Party may refer a dispute to the Adjudicator
at any time.
(2) In this Option, time periods stated in days exclude Christmas Day, Good
Friday and bank holidays.
s
The Adjudicator W2.2
W2.2 (1) The Par
Partie
ties
s appoi
appoint
nt the Adjudicator under the NEC Adjudicator’s Contract e e
r s
current at the starting date. o u
c a
l
c
(2) The Adjudicator acts impartially and decides the dispute as an indepen-
dent adjudicator and not as an arbitrator.
(3) If the Adjudicator is not identified in the Contract Data or if the Adjudicator s
e
resigns or becomes unable to act s
u
i la
n
. the Parties may choose an adjudicator jointly or a c
. a Party may ask the Adjudicator nominating body to choose an adjudicator. mn
io
t
p
the Adjudicator
Adjudica
The request. tor nomin
The nominating
ating
chosen body
adjudic chooses
adjudicator
ator an the
becomes adjudicator within four days of
Adjudicator. o
s
(4) A replacement Adjudicator has the power to decide a dispute referred to y e
r s
his predecessor but not decided at the time when his predecessor resigned or a u
d a
l
became unable to act. He deals with an undecided dispute as if it had been n c
referred to him on the date he was appointed. o n
c o
e it
s
(5) The Adjudicator, his employees and agents are not liable to the Parties for p
o
any action
action or failure
failure to take act
action
ion in an adj
adjudic
udicati
ation
on unle
unless
ss the act
action
ion or
failure to take action was in bad faith.
s
t
n
The adjudication W2.3
W2.3 (1) Befor
(1) Before
e a Pa
Partrtyy refer
refers
s a di
disp
sput
ute
e to the Adjudicator, he gives a notice of t e
s n
adjudication to the other Party with a brief description of the dispute and the o o
c p
decision which he wishes the Adjudicator to make. If the Adjudicator is named m
o
in the Contract Data, the Party sends a copy of the notice of adjudication to c
the Adjudicator when it is issued. Within three days of the receipt of the notice
of adjudication, the Adjudicator notifies the Parties
. that he is able to decide the dispute in accordance with the contract or t
c
. that he is unable to decide the dispute and has resigned. ra
t a
t
n a
If th
the
e Adjudicator doe
doess not so not
notif
ifyy wi
with
thin
in th
thre
ree
e da
days
ys of th
the
e is
issu
sue
e of th
the
e o d
c
notice of adjudication, either Party may act as if he has resigned.
(2) Within seven days of a Party giving a notice of adjudication he
. refers the dispute to the Adjudicator,
. provides the Adjudicator with the information on which he relies, including
any supporting documents and
. provides a copy of the information and supporting documents he has pro-
vided to the Adjudicator to the other Party.
Any further information from a Party to be considered by the Adjudicator is
provided within fourteen days of the referral. This period may be extended if
the Adjudicator and the Parties agree.

®
(3) If a mamatt
tter
er di
disp
sput
uted
ed by th
the
e Contractor und
under
er or in co
conne
nnect
ctio
ion
n wi
with
th a
subco
sub cont
ntra
ract
ct is alalso
so a mat
matte
terr di
disp
sput
uted
ed un
unde
derr or in co
conn
nnect
ectio
ion
n wi
with
th th
this
is
contract, the Contractor may, with the consent of the Subcontractor, refer the
subcontract dispute to the Adjudicator at the same time as the main contract
referral. The Adjudicator then decides the disputes together and references to
the Parties for the purposes of the dispute are interpreted as including the
Subcontractor.
(4) The Adjudicator may
. review
review and re revi
vise
se any act
actio
ionn or ininac
acti
tion
on of th
thee Projec
Projectt Mana ger or
Manager
Supervisor related to the dispute and alter a quotation which has been
treated
treate d as having been accepted,
. take
tak e the initiati
initiative
ve in asc
ascert
ertain
aining
ing the facts and the law rel related
ated to the
dispute,
. instru
instruct
ct a Par
Party
ty to pro
provid
vide
e fur
furthe
therr inf
inform
ormati
ation
on rel
relate
ated
d to the dis
dispute
pute
s within a stated time and
e e
r s . instruct a Party to take any other action which he considers necessary to
o u
c la reach his decision and to do so within a stated time.
c
(5) If a Party does not comply with any instruction within the time stated by
the Adjudicator, the Adjudicator may continue the adjudication and make his
s decision based upon the information and evidence he has received.
e
s
u (6) A communication between a Party and the Adjudicator is communicated to
i a
n l the other Party at the same time.
a c
mno (7) If the Adjudicator’s dec
decision
ision includes assessment
assessment of addit
additional
ional cost or
ti
p delay caused to the Contractor, he makes his assessment in the same way as
o a compensation event is assessed. If the Adjudicator’s decision changes an
s amount notified as due, payment of the sum decided by the Adjudicator is due
y e not later than seven days from the date of the decision or the final date for
r s
a u payment of the notified amount, whichever is the later.
d la
n c
o n (8) Th
(8) Thee Adjudicator dec
decid
ides
es th
the
e di
disp
spute
ute an
and
d no
noti
tifie
fies
s th
the
e Pa
Part
rtie
ies
s and th
the
e
c
e ito Projectt Mana
Projec ger of his decision and his reasons within twenty-eight days of
Manager
s
p the dispute being referred to him. This period may be extended by up to four-
o
teen days with the consent of the referring Party or by any other period agreed
by the Parties.
Parties. The Adjudicator may in his dedeci
cisi
sion
on al
allo
loca
cate
te hi
his
s fe
fees
es and
ts
n expenses between the Parties.
t e
s n (9) Unless and until the Adjudicator has notified the Parties of his decision,
o o
c p the Parties, the Project Manager and the Supervisor proceed as if the matter
m
o disputed
disputed was not disputed.
c
(10) If the Adjudicator does not make his decision and notify it to the Parties
within the time provided by this contract, the Parties and the Adjudicator may
t agree to extend the period for making his decision. If they do not agree to an
c
a a extension, either Party may act as if the Adjudicator has resigned.
tr ta
n d
o (11)) The Adjudicator’s dec
(11 decisi
ision
on is bind
binding
ing on the Parties
Parties unl
unless
ess and unti
untill
c
revised by the tribunal and is enforceable as a matter of contractual obligation
between the Parties and not as an arbitral award. The Adjudicator’s decision
is fina
finall and binding
binding if nei
neithe
therr Par
Party
ty has notified
notified the other within
within the times
required by this contract that he is dissatisfied with a matter decided by the
Adjudicator and intends to refer the matter to the tribunal.
(12) The Adjudicator may, within five days of giving his decision to the Parties,
correct the decision to remove a clerical or typographical error arising by acci-
dent or omiss
omission.
ion.
Review by the tribunal W2

W2.4
.4 (1) A Pa
(1) Part
rtyy do
does
es no
nott re
refe
ferr an
anyy di
disp
sput
ute
e un
unde
derr or in co
conn
nnec
ecti
tion
on wi
with
th th
this
is
contract to the tribunal unless it has first been decided by the Adjudicator in
(2) If, after the Adjudicator notifies his decision a Party is dissatisfied, that
Party may notify the other Party of the matter which he disputes and state

®
Dispute Resolution
that he intends to refer it to the tribunal. The dispute may not be referred to
the tribunal unless this notification is given within four weeks of the notifica-
tion of the Adjudicator’s decision.
(3) The tribunal settles the dispute referred to it. The tribunal has the powers
to rec
recons
onside
iderr any dec
decisi
ision
on of the Adjudicator and to revreview
iew and rev
revise
ise any
action
action or inac
inactio
tion
n of the Project Mana ger or th
Manager thee Supervisor rel
relate
ated
d to the
dispute. A Party is not limited in tribunal proc
proceedings
eedings to the information or
evidence put to the Adjudicator.
(4) If the tribunal is arbitration, the arbitration procedure, the place where the
arbitration is to be held and the method of choosing the arbitrator are those
stated in the Contract Data.
(5) A Party does not call the Adjudicator as a witness in tribunal proceedings.
s
e e
r s
o u
c a
l
c
s
e
s
u
in la
a c
mn
io
t
p
o
s
y e
r s
a u
d a
l
n c
o n
c o
e it
s
p
o
s
t
n
t e
s n
o o
c p
m
o
c
t
c
ra a
t t
n a
o d
c

SECONDARY OPTION CLAUSES
Option X1: Price adjustment for inflation (used only with Options A, B, C and D)
Defin
Defined
ed te
term
rms
s X1
X1.1
X1.1 (a) The Base
Base Date
Date Index
Index (B) is the
the latest
latest avail
availabl
able
e index
index before
before the base date.
(b) Th
The
e La
Late
test
st In
Inde
dexx (L
(L)) is th
the
e la
late
test
st av
avai
aila
labl
ble
e in
inde
dexx be
befo
fore
re th
the
e da
date
te of
assessment of an amount due.
s
e e
r s (c) The Price Adjustment Factor is the total of the products of each of the
o u
c la proportions stated in the Contract Data multiplied by (L – B)/B for the index
c
linked to it.
Price Adjustment Factor X1.2 If an index is changed

changed after it has
has been
been used
used in calcul
calculating
ating a Price
Price Adjust
Adjustment
ment
s Facto
Fac tor,
r, th
the
e ca
calc
lcul
ulat
atio
ion
n is re
repe
peat
ated
ed an
and
d a co
corr
rrec
ecti
tion
on in
incl
clud
uded
ed in th
the
e ne
next
xt
e
s
u assessment of the amount due.
in la
a c The Price Adjustment Factor calculated at the Completion Date for the whole
mn
ito of the works is used for calculating price adjustment after this date.
p
o Compensation events X1.3 The Defined Cost for compens
compensation
ation events is asses
assessed
sed using the
s
e
. Defined Cost current at the time of assessing the compensation event
y s
r
a
u adjust
adjusted
ed to bas
basee dat e by di
date divi
vidi
ding
ng by one pl
plus
us th
the
e Pr
Pric
ice
e Ad
Adju
just
stmen
mentt
a
d
n
l
c
Factor for the last assessment of the amount due and
o
c
n . Defin
De fined
ed Co
Cost
st at bas
basee dat e lev
date levels
els for amou
amounts
nts cal
calcul
culate
atedd fro
fromm rat
rates
es
e o
i
s t stated in the Contract Data for employees and Equipment.
p
o
Price adjustment Options X1.

X1.4
4 Each amount
amount due
due include
includes
s an amount
amount for price
price adjust
adjustment
ment which
which is the
the sum
A and B of
ts
n
t e . the change in the Price for Work Done to Date since the last assessment
s n
o o of the amount due multiplied by the Price Adjustment Factor for the date
c p
m of the current assessment,
o the amount for price adjustmen
adjustmentt inc
includ
luded
ed in the previous
previous amou
amount
nt due
c .
and
. correcting amounts, not included elsewhere, which arise from changes to
t
indices
indices used for asses
assessing
sing previous amounts for price adjustment.
adjustment.
c
a a
tr ta Price adjustment Options X1
X1.5
.5 Each time the amount
Each amount due is assess
assesseded,, an amount
amount for price
price ad
adju
just
stme
ment
nt is
n d
o C and D added to the total of the Prices which is the sum of
c
. the change in the Price for Work Done to Date since the last assessment
of the amount due multiplied by (PAF/(1 þ PAF)) where PAF is the Price
Adjustment Factor for the date of the current assessment and
. correcting amounts, not included elsewhere, which arise from changes to
indices
indices used for asses
assessing
sing previous amounts for price adjustment.
adjustment.

®
Secondary Option Clauses
Option X2: Changes in the law
Change
Changes
s in th
the
e law
law X2
X2.1
X2.1 A change
change in the
the law of the
the countr
countryy in which
which the Site
Site is
is located
located is a compe
compensa
nsa--
tion event if it occurs after the Contract Date. The Project Manager may notify
the Contractor of a compensation event for a change in the law and instruct
him to submit quotations. If the effect of a compensation event which is a
change in the law is to reduce the total Defined Cost, the Prices are reduced.
Option X3: Multiple currencies (used only with Options A and B)

s
e e
r s
o u
c a
l
Multip
Multiple
le curr
currenc
encies
ies X3 c
X3.1 The Contractor is paid in currencies other than the currency of this contract for
the items or act
activi
ivitie
ties
s lis
listed
ted in the Con
Contra
tract
ct Dat
Data.
a. The exchan ge rates are
exchange
used to convert from the currency of this contract to other currencies. s
e
s
X3.2
X3.2 Pay
ayme
ment
ntss to the
the Contractor in cur
currenc
rencies
ies oth
other
er tha
than
n the cur
curren
rency
cy of thi
this
s u
contract do not exceed the maximum amounts stated in the Contract Data. i a
n l
a c
Any excess is paid in the currency of this contract . mn
o
it
p
o
s
e
y s
r
Option X4: Parent company guarantee a
d
u
a
l
n c
o n
c
e o
i
s t
p
Parent company X4 o
guarantee X4.1
X4.1 If a par
parent
ent co
compa
mpany
ny ow
owns
ns th
the
e Contractor, the Contractor gives to the Employer
a guarantee by the parent company of the Contractor’s per perfor
formanc
mance e in the s
t
form set out in the Works Information. If the guarantee was not given by the n
t e
Contract Date, it is given to the Employer within four weeks of the Contract s n
o o
Date. c p
m
o
c
t
c
Option X5: Sectional Completion a
rt a
t
n a
o d
c
Sectional
Sectional Compl
Completion
etion X5
X5.1
X5.1 In the
hes
se conditions of contract, unless stated as the whole of the works, each
reference
reference and clause relevant to
. the works,
. Completion
Complet ion and
. Completion Date
applies, as the case may be, to either the whole of the works or any section of
the works.

®
Option X6: Bonus for early Completion
Bonus
Bonus for
for early
early Compl
Completi
etion
on X6
X6.1 The Contractor is paid a bonus calculated at the rate stated in the Contract
Data for each day from the earlier of
. Completion
Completion and
.
the date on which the Employer takes over the works

until the Complet
Completion
ion Date.
e
s
e Option X7: Delay damages
r s
o u
c la
c
Delay
Delay dama
damages
ges X7
X7.1 The Contractor pays delay damages at the rate stated in the Contract Data
s from the Completion Date for each day until the earlier of
e
s
u . Completion and
Completion
i la
n . the date on which the Employer takes over the works.
a c
mn
ito X7.2
X7.2 If the Comple
Completio
tion
n Date is change
changedd to a later date
date after
after delay
delay damages
damages have
have
p been paid, the Employer repa
repays
ys the overpayment of damages with interest.
o Interest is assessed from the date of payment to the date of repayment and
s the date of repayment is an assessment date.
e
y s
r
a
u X7.3 If the Employer takes over a part of the works before Completion, the delay
a
d
n
l
c
dama
da mage
gess ar
are
e re
redu
duce
ced
d fr
from
om th
the
e dat
date
e on wh
whicich
h th
the
e par
partt is ta
take
ken
n ov
over
er.. Th
The
e
o
c
n Project Manager assesses the benefit to the Employer of taking over the part
e o
i
s t of the works as a proportion of the benefit to the Employer of taking over the
p
o whole of the works not previously taken over. The delay damages are reduced
in this proportion.
ts
n
t e
s n
o o
c p
m
o Option X12: Partnering
c
t Identified and defined X12

c
a
tr ta terms X12.1 (1) The Partners
Partners are those
those named in the Schedule Partners. The Client is a
Schedule of Partners.
n a Partner.
o d
c
(2) An Own Contract is a contract between two Partners which includes this
Option.
(3) The Core Gro
Group
up com
compri
prises
ses the Par
Partne
tners
rs lis
listed
ted in the Schedule
Schedule of Cor
Core
e
Group Members.
(4) Par
Partne
tnerin
ring
g Inf
Inform
ormati
ation
on is inf
informa
ormatio
tion
n whi
which
ch spe
specifi
cifies
es how the Par
Partner
tners
s
work together and is either in the documents which the Contract Data states
it is in or in an instruction given in accordance with this contract.
(5) A Key Performan
Performance ce Indicator
Indicator is an asp
aspect
ect of per
perfor
formanc
mance
e for which a
target is stated in the Schedule of Partners.

®
Actions X12.2 (1) Each Partner

Partner works
works with
with the other
other Partners
Partners to achieve
achieve the Client’s objective
stated in the Contract Data and the objectives of every other Partner stated in
the Schedule of Partn
Partners.
ers.
(2) Each Par
Partne
tnerr nomi
nominat
nates
es a rep
repres
resent
entati
ative
ve to act for it in dea
dealing
lings
s wit
with
h
other Partners.
(3) The Core Group acts and takes decisions on behalf of the Partners on
those matters stated in the Partn
Partnering
ering Information.
Information.
(4) Th
(4) The
e Pa
Part
rtne
ners
rs se
sele
lect
ct th
the
e mem
membe
bers
rs of th
the
e Co
Core
re Gr
Grou
oup.
p. Th
The
e Co
Core
re Gr
Group
oup
decides how they will work and decides the dates when each member joins
and leaves the Core Group. The Client’s representative leads the Core Group
unless stated otherwise in the Partnering Information.
(5) Th
(5) Thee Co
Core
re Gr
Grououpp ke
keep
epss th
the
e Sc
Sche
hedu
dule
le of Co
Core
re Gr
Grou
oup
p Me
Membe
mbers
rs and th
the
e
Schedule of Partners up to date and issues copies of them to the Partners
each time either is revised. s
e e
r s
(6) This Option does not create a legal partnership between Partners who are o u
c a
l
not one of the Parties in this contract. c
Working together X12.3 (1) The Partners

Partners work together
together as stated
stated in the Partnerin
Partnering
g Information
Information and in
a spirit of mutual trust and co-operation. s
e
s
(2) A Partner may ask another Partner to provide information which he needs u
to carry out the work in his Own Contract and the other Partner provides it. i a
n l
a c
mn
(3) Ea
(3) Each
ch Pa
Part
rtne
nerr giv
gives
es an ea
earl
rlyy wa
warni
rning
ng to th
the
e ot
othe
herr Pa
Part
rtne
ners
rs wh
when
en he o
it
becomes aware of any matter that could affect the achievement of another p
Partner’s objectives stated in the Schedule of Partners. o
s
(4) The Partners use common information systems as set out in the Partner- e
y s
ing Information. r
a
u
a
l
d
c
(5) A Partner implements a decision of the Core Group by issuing instructions n
o n
in accor
accordance
dance with its Own Contra
Contracts.
cts. c
e o
i
s t
p
(6) The Cor
Core
e Gro
Group
up may give an ins
instru
tructi
ction
on to the Par
Partne
tners
rs to cha
change
nge the o
Partnering Information. Each such change to the Partnering Information is a

compensation event which may lead to reduced Prices. s
t
n
(7) The Core Group prepares and maintains a timetable showing the proposed t e
s n
timing of the contributions of the Partners. The Core Group issues a copy of o o
c p
the timetable to the Partners each time it is revised. The Contractor changes m
his programme if it is necessary to do so in order to comply with the revised o
c
timeta
timetable.
ble. Each suc
suchh cha
change
nge is a comp
compens
ensati
ation
on eve
event
nt whi
which
ch may lea
lead
d to
reduced Prices.
(8) A Partner gives advice, information and opinion to the Core Group and to t
c
other Partners when asked to do so by the Core Group. This advice, informa- ra a
t t
tion and opinion relates to work that another Partner is to carry out under its n a
o d
Own Con
Contra
tract
ct and is give
given
n ful
fully,
ly, ope
openly
nly and obj
object
ective
ively.
ly. The Par
Partne
tners
rs sho
showw c
contingency and risk allowances in information about costs, prices and timing
for future work.
(9) A Partner notifies the Core Group before subcontracting any work.
Incentives X12.4
X12.4 (1) A Partner
Partner is paid the amount
amount stated
stated in the Schedul
Schedule
e of Par
Partner
tners
s if the
target stated for a Key Performance Indicator is improved upon or achieved.
Payment of the amount is due when the target has been improved upon or
achi
achiev
eved
ed an
and
d is ma
made
de as papart
rt of th
the
e am
amou
ount
nt du
due
e in th
the
e Pa
Part
rtne
ner’
r’s
s Ow
Ownn
Contract.
(2) The Client may add a Key Performance Indicator and associated payment
to the Schedule of Partners but may not delete or reduce a payment stated in
the Schedule of Partn
Partners.
ers.

®
Option X13: Performance bond
Perfor
Performanc
mance
e bon
bond
d X13
X13.
X13.1
1 The Contractor gives the Employer a performance bond, provided by a bank or
insurer which the Project Manager has accepted, for the amount stated in the
Contract Data and in the form set out in the Works Information. A reason for
not accepting the bank or insurer is that its commercial position is not strong
enough to carry the bond. If the bond was not given by the Contract Date, it is
given to the Employer within four weeks of the Contract Date.
e
s
e Option X14: Advanced payment to the Contractor
r s
o u
c la
c
Advance
Advanced
d paym
payment
ent X14
X14.
X14.1
1 The Employer makes an advanced payment to the Contractor of the amount
s stated in the Contract Data.
e
s
u X14.2 The advanced
advanced payment is made either
either within four weeks
weeks of the Contract
Contract Date
in la or, if an advanced payment bond is required, within four weeks of the later of
a c
mn
ito . the Contract Date and
p . Employer
o the date when the receives the advance
advancedd paymen
paymentt bond.
The advanced payment bond is issued by a bank or insurer which the Project
s
e Manager has accepted
accepted.. A rea
reason
son for not accepting
accepting the proposed
proposed bank or
y s
r
a
u insurer is that its commercial position is not strong enough to carry the bond.
a
d
n
l
c
The bond is for the amount of the advanced payment which the Contractor
o
c
n has not repaid and is in the form set out in the Works Information. Delay in
e o
i
s t making the advanced payment is a compensation event.
p
o
X14.3
X14.3 The advanc
advanced
ed payment
payment is repaid
repaid to the Employer by the Contractor in instal-
ments of the amount stated in the Contract Data. An instalment is included in
ts each amount due assessed after the period stated in the Contract Data has
n
t e passed until the advanced payment has been repaid.
s n
o o
c p
m
o
c
Option X15: Limitation of the Contractor’s liability for his design to

t
c a
a
tr ta reasonable skill and care
n d
o
c
The Contractor’s de
desi
sign
gn X1
X15
5
X15.
X15.1
1 The Contractor is not liable for Defects in the works due to his design so far
as he proves that he used reasonable skill and care to ensure that his design
complied
complied with the Works Information.
Information.
X15.
X15.2
2 If th
thee Contractor corrects a Defect for which he is not liable under this contract
it is a compensation event.

®
Option X16: Retention (not used with Option F)
Retenti
Retention
on X16
X16.1
X16.1 After
After the Price for Work
Work Done to Dat
Date
e has rea
reache
chedd the retention free amount ,
an amount is retained in each amount due. Until the earlier of
. Completion of the whole of the works and
.
the date on which the Employer takes over the whole of the works
the amount retained is the retention percentage applied to the excess of the
Price for Work Done to Date above the retention free amount.
X16.2 The amount
amount retain
retained
ed is halved
. in the assessment made at Completion of the whole of the works or
. in the next assessment after the Employer has taken over the whole of s
the works if this is before Completion of the whole of the works. e e
r s
o u
The amount retained remains at this amount until the Defects Certificate is c a
l
c
issued
issued.. No amo
amount
unt is ret
retaine
ained
d in the ass
assess
essmen
ments
ts made after the Defects
Defects
Certificate has been issued.
s
e
s
u
i a
n l
Option X17: Low performance damages a c
mn
o
it
p
o
Low performance X17
s
damages X17.1
X17.1 If a Def
Defect
ect included
included in the Defects
Defects Certificat
Certificate
e sho
shows
ws low performan
performance
ce with e
y s
respec
res pectt to a per
perfor
formanc
mance
e lev
level
el sta
stated
ted in the Contract
Contract Data, the Contractor r
a
u
a
l
pays the amount of low performance damages stated in the Contract Data. d
n c
o n
c
e o
i
s t
p
o
Option X18: Limitation of liability

s
t
n
t e
s n
o o
Limitation
Limitation of liabil
liability
ity X18 c p
X18.
X18.1
1 The
The Contractor’s liability to the Employer for the Employer’s indirect or conse- m
o
quential loss is limited to the amount stated in the Contract Data. c
X18.2
X18.2 For any one event
event,, the liabili
liability
ty of the Contractor to the Employer for loss of or
damage
dam age to the Employer’s pr prope
opert
rtyy is li
limi
mite
ted
d to th
the
e amount
amount stated
stated in th
thee
t
Contract Data. c a
ra
t t
X18.
X18.3
3 The
The Contractor’s liability to the Employer for Defects due to his design which n a
o d
are not listed on the Defects Certificate is limited to the amount stated in the c
Contract Data.
X18.
X18.4
4 The
The Contractor’s total liability to the Employer for all matters arising under or
in connection with this contract, other than the excluded matters, is limited to
the amount stated in the Contract Data and applies in contract, tort or delict
and otherwise to the extent allowed under the law of the contract.
The excluded matters are amounts payable by the Contractor as stated in this
contract for
. loss of or damage to the Employer’s property,
. delay damages if Option X7 applies,
. low performance damages if Option X17 applies and
. Contractor’s share if Option C or Option D applies.
X18.
X18.5
5 The
The Contractor is not liable to the Employer for a matter unless it is notified to
the Contractor before the end of liability date .

®
Option X20: Key Performance Indicators (not used with Option X12)
Incentives X20.1 A Key Performance

Performance Indicat
Indicator
or is an aspect
aspect of performanc
performance
e by the Contractor for
which a target is stated in the Incentive Schedule. The Incentive Schedule is
the incentive schedule unless later changed in accordance with this contract.
X20.
X20.2
2 Fr
From
om the starting date unt
starting until
il the Def
Defect
ects
s Cer
Certifi
tificat
cate
e has bee
been
n iss
issued
ued,, the
Contractor reports to the Project Manager his performance against each of the
Key Per
Perfor
formanc
mance
e Ind
Indica
icator
tors.
s. Rep
Report
orts
s are pro
provid
vided
ed at the int
interv
ervals
als sta
stated
ted in
the Contract Data and include the forecast final measurement against each
indicator.
X20.
X20.3
3 If the
the Contractor’s fore
forecast
cast fina
finall meas
measure
urement
ment aga
agains
instt a Key Per
Perfor
formanc
mance e
Indica
Ind icator
tor will not ach
achiev
ieve
e the tar
target
get sta
stated
ted in the Inc
Incent
entive
ive Sch
Schedu
edule,
le, he
s submits to the Project Manager his proposals for improving performance.
e e
r s X20.
X20.4
4 The
The Contractor is paid the amount stated
stated in the Incentiv
Incentive
e Sch
Schedu
edule
le if the
o u
c la target stated for a Key Performance Indicator is improved upon or achieved.
c
Payment of the amount is due when the target has been improved upon or
achieved.
s X20.
X20.5
5 The
The Employer may add a Key Performance Indicator and associated payment
e
s to the Incentive Schedule but may not delete or reduce a payment stated in
u
i la
n the Incentive Schedule.
a c
mn
ito
p
o
s
e
y s
r
u
a
a
l
d
n c
o n
c
e o
i
s t
p
o
ts
n
t e
s n
o o
c p
m
o
c
t
c a
a
tr ta
n d
o
c

®
OPTION Y
Option Y(UK)1: Project Bank Account
Definit
Definition
ions
s Y(UK
Y(UK)1
)1
Y1.1
Y1.1 (1) Th
(1) The
e Aut
Author
horis
isat
atio
ion
n is a do
docu
cumen
mentt au
auth
thor
oris
isin
ing
g th
the
e projec
projectt bank to mak
make
e
payments to the Contractor and Named Suppliers.
(2) Nam
Nameded Supp
Supplie
liers
rs are named suppliers and other Sup
suppliers Suppli
pliers
ers who hav
have
e
signed the Joining Deed.
(3) Project Bank Account is the account used to receive payments from the s
Employer an
andd th
the
e Contractor an
andd mak
makee pay
payme
ments
nts to th
the
e Contractor and e e
r s
Named Suppliers. o u
c a
l
c
(4) A Supplier is a person or organisation who has a contract to
. construct or install part of the works,
. provide a service necessary to Provide the Works or s
e
. supply Plant and Materials for the works. s
u
(5) Trust Deed is an agreement in the form set out in the contract which con- i a
n l
a c
tains provisions
provisions for admini
administeri
stering
ng the Proje
Project
ct Bank Account. mn
o
it
(6) Joining Deed is an agreement in the form set out in the contract under p
which the Supplier joins the Trust Deed. o
s
Project Bank Account Y1.2 The Contractor esta
establi
blishe
shess the Pro
Projec
jectt Ban
Bank
k Acc
Account
ount wit
with
h the projec
projectt bank y
e
s
r
u
within three weeks of the Contract Date. a
a
d l
n c
Y1.3
Y1.3 Unless stat
Unless stated
ed other
otherwis
wise
e in the
the Contra
Contract
ct Data,
Data, the
the Contractor pays any charges o n
c
o
made and is paid any interest paid by the project bank. The charges and inter- e
s
i
t
p
est by the project bank are not included in Defined Cost. o
Y1.4 The Contractor submits to the Project Manager for acceptance details of the
banking arrangements for the Project Bank Account. A reason for not accept- s
t
ing the banking arrangements is that they do not provide for payments to be n
t e
made in accordance with this contract. The Contractor provides to the Project s n
o o
Manager copies of communications with the project bank in connection with c p
m
the Project Bank Account. o
c
Named Suppliers Y1.5 The Contractor includes in his contracts with Named Suppliers the arrange-
ments in this contract for the operation of the Project Bank Account and Trust
t
Deed. The Contractor
Bank Account and thenotifies the Named
arrangements for Suppliers
payment ofofamounts
the details
dueofunder
the Project
their c
a
rt a
t
n a
contracts. o d
c
Y1.6 The Contractor susubm
bmit
its
s pr
propo
oposa
sals
ls fo
forr ad
addi
ding
ng a Su Suppl
pplie
ierr to th
the
e Nam
Named
ed
Suppliers to the Project Manager for acceptance. A reason for not accepting is
that the addition of the Supplier does not comply with the Works Information.
The Employer, the Contractor and the Supp Supplie
lierr sig
sign
n the Joining
Joining Dee
Deed
d aft
after
er
acceptance.
Payments Y1
Y1.7
.7 On or bef
befor
ore
e each
each asses
assessm
smenentt date,
date, the
the Contractor subm
submits
its to the Project
Manager an apappl
plic
icat
ation
ion fo
forr pay
payme
ment
nt,, and sh
show
owss in th
the
e app
appli
lica
cati
tion
on th
the
e
amounts due to Named Suppliers in accordance with their contracts.
Y1.8
Y1.8 Within the
Within the time set
set out in
in the banki
banking
ng arrange
arrangemen
ments
ts to allow
allow the
the project bank
to make payment to the Contractor and Named Suppliers in accordance with
the contract,
. the Employer makes payment to the Project Bank Account of the amount
which is due to be paid under the contract and

®
. the Contractor ma
make
kes
s pa
payme
yment
nt to th
thee Pr
Proj
ojec
ectt Ba
Bank
nk Ac
Acco
count
unt of any
amount
amou nt whi
which
ch the Employer has not
notifie
ified
d the Contractor he int
intend
ends
s to
withhold from the certified amount and which is required to make pay-
ment to Named Suppliers.
Y1.9 The Contractor pre
prepa
pare
res
s th
the
e AuAuth
thor
oris
isat
atio
ion,
n, se
sett
ttin
ing
g ou
outt th
the
e su
sums
ms du
duee to
Named Suppliers as assessed by the Contractor and to the Contractor for the
balance of the payment due under the contract. After signing the Authorisa-
tion, the Contractor submits it to the Project Manager no later than four days
before the final date for payment. The Employer signs the Authorisation and
submits it to the project bank no later than one day before the final date for
payment.
Y1.1
Y1.10
0 The
The Contractor and Named Suppliers receive payment from the Project Bank
Account of the sums set out in the Authorisation as soon as practicable after
the Project Bank Account receives
receives payment.
s
e e Y1.1
Y1.11
1 A pa
paym
yment
ent which
which is due from
from th
thee Contractor to th
the
e Employer is not made
r s
o u through the Proje
Project
ct Bank Accoun
Account.
t.
c la
c
Effect of payment Y1.12 Payments
Payments made from thethe Project Bank
Bank Account
Account are treated
treated as payments
payments from
the Employer to the Contractor in accordance with this contract or from the
s Contractor or Subcontractor to Named Suppliers in accordance with their con-
e tracts as applicable. A delay in payment due to a failure of the Contractor to
s
u
i la
n comply with the requirements of this clause is not treated as late payment
a c under this contract.
mn
ito
p
o Trust Deed Y1.
Y1.13
13 The
Th Employer,
thee first the Contractor
assessment
asses sment date. and
an d named suppliers sign the Trust Deed before
s
e
y
r
s Termination Y1
Y1.1
.14
4 If the Project Manager issues a termination certificate, no further payment is
u
a
d
a
l
made into the Project Bank Account.
n c
o n
c
e o
i
s t
p
o
ts
n
t e
s n
o o
c p
m
o
c
t
c
a ta
tr a
n d
o
c

®
Trust Deed
This ag
This agre
reem
ement
ent is mad
made
e be
betw
twee
een
n th
the
e Employer, the Contractor an
and
d th
the
e Nam
Named
ed
Suppliers.
Terms
Term s in th thisis de deed ed hahave
ve th the e me mean aningings s gi givevenn to th themem in th the e cont
contrac
ractt be
betw
twee
een
n
. . . . . . . . . . . . . . . . . . . . . and . . . . . . . . . . . . . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . (t
( the works).
Background
The Employer and the Contractor have entered into a contract for the works.
The Named Suppliers have entered into contracts with the Contractor or a Subcontrac-
tor in connection with the works.
The Contractor has established a Project Bank Account to make provision for payment
to the Contractor and the Named Suppliers.
s
Agreement e e
r s
o u
The parties to this deed agree that c a
l
c
. sums due to the Contractor and Named Suppliers and set out in the Authorisation
are held in trust in the Project Bank Account by the Contractor for distribution to
the Contractor and Named Suppliers in accordance with the banking arrangements s
e
applicable
applica ble to the Project Bank Account
Account,, s
u
. further Named Suppliers may be added as parties to this deed with the agreement i a
n l
of the Employer and Contractor. The agreement of the Employer and Contractor is a c
mn
treated as agreement by the Named Suppliers who are parties to this deed, o
it
. p
. thisbenefits
the deed is subject to the
under this deedlaw of the
may not contract for the works,
be assigned. o
s
e
y s
Executed as a deed on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r
a
u
a
l
d
n c
by o n
c
e o
i
s t
p
. . . . . . . . . . . . . . . . . . . . . . . ..
. . . . . . . . . . . . . . . . . . . . . (Employer) o
. . . . . . . . . . . . . . . . . . . . . . . ..
. . . . . . . . . . . . . . . . . . . . . (Contractor) s
t
n
t e
............................................ s n
o o
c p
............................................ m
o
c
............................................
............................................ t
c
a
rt a
t
(Named Suppliers) a
n d
o
c

®
Joining Deed
This agreement is made between the Employer, the Contractor a
annd . . . . . . . . . . . . . . (the
Additional Supplier).
Terms
Term s in th thisis de deed ed hahave
ve th the e me mean anin ingsgs gi givevenn to th themem in th the e cont
contra
ract
ct be
betw
twee
een
n
. . . . . . . . . . . . . . . . . . . . . and . . . . . . . . . . . . . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . (t
( the works).
Background
The Employer and the Contractor have entered into a contract for the works.
The Named Suppliers have entered into contracts with the Contractor or a Subcontrac-
tor in connection with the works.
The Contractor has established a Project Bank Account to make provision for payment
to the Contractor and the Named Suppliers.
s The Employer, the Contractor and the Named Suppliers have entered into a deed as
e e
r s set out in Annex 1 (the Trust Deed), and have agreed that the Additional Supplier may
o u
c la join that deed.
c
Agreement
s The Parties to this deed agree that
e
s
u . the Additional Supplier becomes a party to the Trust Deed from the date set out
in la below,
a c
mn . this deed is subject to the law of the contract for the works,
ito . the benefits under this deed may not be assigned.
p
o
s Executed as a deed on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e
y s
r
a
u by
a
l
d
n c . . . . . . . . . . . . . . . . . . . . . ..
. . . . . . . . . . . . . . . . . . . . . . . (Employer)
o n
c
e o
i
s t . . . . . . . . . . . . . . . . . . . . . ..
. . . . . . . . . . . . . . . . . . . . . . . (Contractor)
p
o
............................................ (Additional Supplier)
ts
n
t e
s n
o o
c p
m
o
c
t
c a
a
tr ta
n d
o
c

®
Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996
Definit
Definition
ions
s Y(UK
Y(UK)2
)2
Y2.1
Y2.1 (1) The Act
Act is the Housing
Housing Grants
Grants,, Constru
Constructi
ction
on and Regener
Regenerati
ation
on Act 1996
1996
as amended by the Local Democracy, Economic Development and Construc-
tion Act 2009.
(2) A period of time stated in days is a period calculated in accordance with

Section 116 of the Act.
Dates for payment Y2.

Y2.2
2 The date
date on which
which a payment
payment becom
becomes
es due is seve
seven
n days after
after the
the assess-
assess-
ment date.
The final date for payment is fourteen days or a different period for payment if
stated in the Contract Data after the date on which payment becomes due. s
e e
The Project Mana ger’s certificate is the notice of payment to the Contractor
Manager r s
o u
specifying the amount due at the payment due date (the notified sum) and c a
l
c
stating the basis on which the amount was calculated.
Notice of intention Y2.3

Y2.3 If either
either Party
Party inten
intends
ds to pay less
less than
than the notified
notified sum,
sum, he notifies
notifies the
the other
other
s
to pay less Party not later than seven days (the prescribed period) before the final date e
s
for payment by stating the amount considered to be due and the basis on u
which that sum is calculated. A Party does not withhold payment of an i a
n l
a c
amount due under this contract unless he has notified his intention to pay mn
o
it
less than the notified sum as required by this contract. p
o
Suspension of Y2.4 If the Contractor exercises his right under the Act to suspend performance, it
s
performance is a compensation event. y
e
s
r
u
a
a
l
d
n c
o n
c
e o
i
s t
p
o
Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999
s
t
n
t e
Third party rights Y(UK)3 s n
o o
Y3.1
Y3.1 A person
person or organis
organisati
ation
on who is not one
one of the Parti
Parties
es may enfor
enforce
ce a term of c p
this contract under the Contracts (Rights of Third Parties) Act 1999 only if m
o
c
the term and the person or organisation are stated in the Contract Data.
t
c a
ra
t t
Option Z: Additi
Additional
onal condit
conditions
ions of contra
contract
ct n a
o d
c
Additional conditions of Z1
contract Z1.1 The additio
additional
nal cond
conditions
itions of contract stated in the Contract Data are part of
contract
this contract.

SCHEDULE OF COST COMPONENTS
This schedule is part of the conditions of contract only when Option C, D or E

is use
used.
d. In thi
this
s sch
schedu
edule
le the Contractor mean
meanss the Contractor and not his
Subcontractors. An amount is included only in one cost component and only if
it is incurred in order to Provide the Works.
Peop
People
le 1 The follo
following
wing compone
components
nts of the cost of
. people who are directly employed by the Contractor and whose normal
place of working is within the Working Areas and
s place of working is not within the Working Areas but who are working in
e e the Working Areas.
r s
o u
c la 11 Wages,, sa
Wages sala
lari
ries
es an
and
d am
amou
ounts
nts pai
paid
d by th
the
e Contractor for people paid according
c
to the time worked while they are within the Working Areas.
12 Paym
Paymen
ents
ts to pe
peop
ople
le fo
forr
s
e (a) bonuses and
and incentives
incentives
s
u (b) overtime
overtime
i la
n
(c) working
working in special circumsta
circumstances
nces
a c
mn (d) speciall allowances
specia allowances
ito
p
(e) absence
absenc e due to sickness
sickness and holidays
holidays
o (f) severance
sever ance related
related to work
work on this contract.
contract.
s 13 Payme
Payment
nts
s ma
made
de in re
rela
lati
tion
on to pe
peopl
ople
e fo
forr
y e
r s
a u (a) tra
travel
vel
d la (b) subsis
subsistence
tence and lodging
lodging
n c
o n (c) reloc
relocation
ation
c
e ito (d) medical examina
examinations
tions
s
p
o (e) passpor
passportsts and visas
visas
(f) tra
travel
vel ins
insura
urance
nce
s (g) items (a)
(a) to (f) for dependants
dependants
t
n (h) protec
protective
tive clothing
clothing
t e
s n (i) meeting the requireme
requirements nts of the law
o o
c p (j) pension
pensions s and
and life
life assuranc
assurancee
m (k) dea
death
th benefit
benefit
o
c
(l) occupat
occupational
ional accide
accident nt benefits
(m) medical aid
(n) a vehicl
vehiclee
t (o) safety traini
training.
ng.
c
a ta
tr a 14 The fol
follow
lowing
ing com
compone
ponents
nts of the
the cost
cost of peop
people
le who
who are
are not
not dire
directl
ctlyy employ
employed
ed
n d
o by the Contractor but are paid for by him according to the time worked while
c
they are within the Working Areas.
Amounts paid by the Contractor.
Equip
Equipmen
mentt 2 The follo
following
wing compo
componen
nents
ts of the cost
cost of Equipm
Equipment
ent which
which is used
used within
within the
the
Working Areas (including the cost of accommodation but excluding Equipment
cost covered by the percentage for Working Areas overheads).
21 Payme
Payment
nts
s for
for th
the
e hire
hire or
or ren
rentt of
of Equi
Equipme
pment
nt not
not ow
owned
ned by
. the Contractor,
. his parent company or
. by a company with the same parent company
at the hire or rental rate multiplied by the time for which the Equipment is
required.

®
Schedule of Cost Components
22 Paymen
Payments
ts for Equi
Equipmen
pmentt whic
which
h is not lis
listed
ted in the
the Con
Contra
tract
ct Dat
Data
a but
but is
. owned by the Contractor,
. purchased by the Contractor under a hire purchase or lease agreement
or
. hired by the Contractor from the Contractor’s parent company or from a
company with the same parent company
at op
open
en ma
mark
rket
et ra
rate
tes,
s, mul
multi
tipl
plie
ied
d by th
the
e ti
time
me fo
forr wh
whic
ich
h th
the
e Equ
Equipm
ipment
ent is
required.
23 Payme
Pa yment
nts
s for Equip
Equipme
ment
nt purch
purchas
ased
ed for work
work incl
include
uded
d in this cont
contrac
ractt liste
listed
d
with a time-related on cost charge, in the Contract Data, of
. the change in value over the period for which the Equipment is required
and
. the
the ti
time
me-r
-rel
elat
ated
ed on co
cost
st ch
char
arge
ge ststat
ated
ed in th
the
e Co
Cont
ntra
ract
ct Da
Data
ta fo
forr th
the
e
period for which the Equipment is required. s
e e
r s
The change in value is the difference between the purchase price and either o u
c a
l
the sale price or the open market sale price at the end of the period for which c
the Equipment is required. Interim payments of the change in value are made
at each assessment date. A final payment is made in the next assessment
after the change in value has been determined. s
e
s
If th
the
e Projec
Projectt Mana ger agr
Manager agreeees,
s, an ad
addi
diti
tion
onal
al it
item
em of Equ
Equipm
ipmen
entt may be u
assessed as if it had been listed in the Contract Data. i a
n l
a c
24 Paymen
Payments
ts for
for spec
special
ial Equi
Equipmen
pmentt liste
listed
d in the Con
Contra
tract
ct Data
Data.. These
These amo
amount
unts
s mn
o
it
p
are the rates
Equipment stated in the Contract Data multiplied by the time for which the
is required. o
If the Project Mana ger agrees, an additional item of special Equipment may
Manager s
y e
be assessed as if it had been listed in the Contract Data. r s
a u
d a
l
25 Paymen
Payments
ts for the pur
purchas
chase
e pric
price
e of
of Equi
Equipmen
pmentt whic
which
h is
is cons
consumed
umed.. n c
o n
c o
26 Unless
Unless inc
include
luded
d in
in the
the hir
hire
e or rent
rental
al rat
rates,
es, pay
payment
ments
s for e it
s
p
. transporti
transpo rting
ng Equi
Equipmen
pmentt to and fro
from
m the Wor
Workin
king
g Are
Areas
as oth
other
er tha
thann for o
repair and mainten
maintenance,
ance,
. erecting
erecting and dismantling Equipment and s
t
n
. cons
co nstr
truc
ucti
ting
ng,, fa
fabr
bric
icat
atin
ing
g or mo
modi
dify
fyin
ing
g Eq
Equi
uipme
pmentnt as a re
resu
sult
lt of a t e
s n
compensation event. o o
c p
27 Paymen
Payments
ts for
for purc
purchas
hase
e of mate
materia
rials
ls used
used to cons
constru
truct
ct or
or fabri
fabricat
cate
e Equipme
Equipment.
nt. m
o
c
28 Unless inc
Unless include
luded
d in the
the hire
hire rate
rates,
s, the
the cost
cost of
of operat
operative
ives
s is inc
include
luded
d in the
the cost
cost
of people.
t
Plant
Plant and
and Mat
Materi
erials
als 3 The follow
following
ing compone
components
nts of the cost of Plant and Materi
Materials.
als. c
a
rt a
t
31 Payments for n a
o d
c
. purchasing Plant and Materials,
. delivery to and removal from the Working Areas,
. providing
providing and removing packaging and
. samples and tests.
32 Cost is cred
Cost credit
ited
ed with
with payme
payment
nts
s recei
receive
ved
d for disp
dispos
osal
al of Plan
Plantt and Mater
Materia
ials
ls
unless the cost is disal
disallowed.
lowed.
Char
Charge
ges
s 4 The follow
following
ing compone
components
nts of the cost of charges paid by the
the Contractor.
41 Paymen
Payments
ts for pro
provis
vision
ion and use in the Wor
Workin
king
g Are
Areas
as of
. water,
. gas and
. electricity.

®
42 Payments
Payment s to publi
public
c author
authoriti
ities
es and
and other
other prop
properl
erlyy consti
constitut
tuted
ed autho
authorit
rities
ies of
of
charges which they are authorised to make in respect of the works.
43 Payments for
(a) cancellation charges
cancellation charges arising from a compensation
compensation event
(b) buying or leasi
leasing
ng land
(c) compensation
compens ation for loss
loss of crops or buildings
buildings
(d) royalties
royalties
(e)
(f) inspec
inspection
charges tion
forcertificate
cert
accificates
ess tos the
access the Working
Working Areas
Areas
(g) facilities
facilities for visits
visits to the Working Areas
Areas by Others
(h) specialist
specia list services
services
(i) consumables
consuma bles and equipmen
equipmentt provided
provided by the Contractor for the Project
Manager’s and Supervisor’s offices.
44 A charge
charge for ove
overhe
rhead
ad costs
costs inc
incurr
urred
ed with
within
in the
the Worki
Working
ng Areas
Areas cal
calcul
culate
ated
d by
s
e e applying the percentage for Working Areas overheads stated in the Contract
r s
o u Data to the total of people items 11, 12, 13 and 14. The charge includes
c la
c provision and use of equipment, supplies and services, but excludes accom-
modation, for
(a) catering
catering
s (b) medical facilit
facilities
ies and first aid
e
s
u (c) recreation
recrea tion
i la
n
(d) sanitation
sanita tion
a c
mn (e) security
security
ito (f) copying
copying
p
o (g) telephone, telex, fax,
telephone, fax, radio and CCTV
(h) surveying
surveying and setting
setting out
s (i) computi
com puting
ng
y e
r s (j) hand tools
tools not powered
powered by compres
compressed
sed air.
air.
a u
d la
n c
o n Manufacture and 5 The followi
following
ng components
components of the
the cost
cost of manufac
manufacture
ture and fabrica
fabrication
tion of Plant
Plant
c
e ito fabrication and Materials which are
s
p
o . wholly or partly designed specifically for the works and
. manufactured
manufac tured or fabric
fabricated
ated outside the Worki
Working
ng Areas
Areas..
s
t
n 51 The tota
totall of the hour
hours
s worke
worked
d by emplo
employee
yeess multi
multipl
plie
ied
d by the hour
hourly
ly rate
rates
s
t e
s n stated in the Contract Data for the categories of employees listed.
o o
c p
m
52 An amount
amount for
for over
overhe
head
adss calcu
calcula
late
tedd by multi
multipl
plyi
ying
ng this
this tota
totall by the perc
percen
en--
o tage
tage for man
manufac
ufactur
turing
ing and fab
fabric
ricati
ation
on ove
overhe
rheads
ads sta
stated
ted in the Con
Contra
tract
ct
c
Data.
Desi
Design
gn 6 The foll
followi
owing
ng compon
component
ents
s of the cos
costt of desi
design
gn of the works and Equipment
t
c
a ta done outside the Working Areas.
tr a
n d 61 The tota
totall of the hour
hours
s worke
worked
d by emplo
employee
yeess multi
multipli
plied
ed by the
the hourly
hourly rate
rates
s
o
c stated in the Contract Data for the categories of employees listed.
62 An amount
amount for
for over
overhea
heads
ds calc
calcul
ulat
ated
ed by mult
multipl
iplyi
ying
ng this
this tota
totall by the perc
percen
en--
tage for design overheads stated in the Contract Data.
63 The cost
cost of trav
travel
el to
to and fro
from
m the Wor
Workin
king
g Areas
Areas for
for the
the cate
categor
gories
ies of desig
design
n
employees
employees listed in the Contr
Contract
act Data.
Insura
Insuranc
nce
e 7 The follo
following
wing are deduct
deducted
ed from cost
. the co
the cost
st of ev
event
entss fo
forr wh
whic
ich
h th
this
is co
cont
ntra
ract
ct re
requ
quir
ires
es th
the
e Contractor to
insure and
. other costs paid to the Contractor by insurers.

SHORTER SCHEDULE OF COST COMPONENTS
This schedule is part of the conditions of contract only when Option A, B, C, D

or E is used. When Option C, D or E is used, this schedule is used by agree-
ment for assessing compensation events. When Option C, D or E is used, in
this schedule the Contractor means the Contractor and not his Subcon
Subcontrac
trac--
tors
tors.. An am
amoun
ountt is in
incl
clude
udedd on
only
ly in on
one
e co
cost
st co
comp
mpone
onent
nt an
and
d onl
onlyy if it is
incurred in order to Provide the Works.
Peop
People
le 1 The follow
following
ing compone
components
nts of the cost of
place of working is within the Working Areas, s
. people who are directly employed by the Contractor and whose normal e e
r s
place of working is not within the Working Areas but who are working in o u
c a
l
the Working Areas and c
. people who are not directly employed by the Contractor but are paid for
by him according to the time worked while they are within the Working
Areas. s
e
s
11 Amoununtts paid by the Contractor including those for meeting the requirements u
of the law and for pension provision. i a
n l
a c
mn
o
it
Equipm
Equipment
ent 2 The follo
followin
wing
g componen
components
ts of the cost
cost of Equip
Equipment
ment whic
which
h is used withi
within
n the p
Working Areas (including the cost of accommodation but excluding Equipment o
cost covered by the percentage for people overheads).
s
y e
21 Amounts
Amoun ts for
for Equipm
Equipment
ent whi
which
ch is in the
the publ
publis
ishe
hed
d list
list state
stated
d in the Cont
Contra
ract
ct r s
a u
Data. These amounts are calculated by applying the percentage adjustment d a
l
for listed Equipment stated in the Contract Data to the rates in the published n c
o n
list and by multiplying the resulting rate by the time for which the Equipment c o
e it
s
is required. p
o
22 Amount
Amou nts
s fo
forr Eq
Equi
uipm
pmen
entt li
list
ste
ed in the
the Co
Cont
ntra
ract
ct Data
Data whic
which
h is not
not in the
the
publ
publis
ishe
hedd li
list
st st
stat
ated
ed in th
thee Co
Cont
ntra
ract
ct Da
Data
ta.. Th
Thes
ese
e amo
amount
untss ar
are
e th
the
e ra
rate
tes
s s
t
stated in the Contract Data multiplied by the time for which the Equipment is n
t e
required. s n
o o
c p
23 The tim
time
e requir
required
ed is
is expre
expresse
ssed
d in hour
hours,
s, days
days,, weeks
weeks or month
months
s consis
consisten
tently
tly m
with the list of items of Equipment in the Contract Data or with the published o
c
list stated in the Contract Data.
24 Unless the ite
Unless item
m is in the
the publ
publish
ished
ed list
list and the
the rate
rate inc
include
ludes
s the
the cost
cost compo
compo--
nent, payments for t
c
a
rt a
t
. transporti
transpo rting
ng Equi
Equipmen
pmentt to and fro
from
m the Wor
Workin
king
g Are
Areas
as oth
other
er tha
thann for a
n d
repair and mainten
maintenance,
ance, o
c
. erecting
erecting and dismantling Equipment and
. cons
co nstr
truc
ucti
ting
ng,, fa
fabr
bric
icat
atin
ing
g or mo
modi
dify
fyin
ing
g Eq
Equi
uipme
pmentnt as a re
resu
sult
lt of a
compensation event.
25 Unless the ite
Unless item
m is in the
the publ
publish
ished
ed list
list and the
the rate
rate inc
include
ludes
s the
the cost
cost compo
compo--
nent, the purchase price of Equipment which is consumed.
26 Unless
Unle ss incl
include
uded
d in the rate
rate in the
the publ
publis
ishe
hed
d list,
list, the
the cost
cost of opera
operati
tive
ves
s is
included in the cost of people.
27 Amounts
Amoun ts for
for Equip
Equipme
ment nt whic
which
h is neith
neither
er in the
the publi
publish
shed
ed list
list stat
stated
ed in the
the
Contra
Contract
ct Dat
Dataa nor lis
listed
ted in the Contract
Contract Dat
Data,
a, at com
competi
petitiv
tively
ely ten
tender
dered
ed or
open market rates, multiplied by the time for which the Equipment is required.

®
Plant
Plant and
and Mat
Materi
erials
als 3 The follo
following
wing compone
components
nts of the cost of Plant
Plant and Materi
Materials.
als.
31 Payments for
. purchasing Plant and Materials,
. delivery to and removal from the Working Areas,
. providing
providing and removing packaging and
. samples and tests.
32 Cost is cred
Cost credit
ited
ed with
with paymen
paymentsts rece
receiv
ived
ed for
for dispo
disposa
sall of Plant
Plant and Mate
Materi
rial
als
s
unless the cost is disal
disallowed.
lowed.
Char
Charge
ges
s 4 The follo
following
wing compone
components
nts of the cost of charges
charges paid by the
the Contractor.
41 A charg
charge
e calcul
calculate
ated
d by app
applyi
lying
ng the
the perc
percent
entage
age for peop
people
le over
overhea
heads
ds stat
stated
ed
in the Contract Data to people item 11 to cover the costs of
. payments for the provision and use in the Working Areas of water, gas
s
e e and electricity,
r s
o u . payments for buying or leasing land, compensation for loss of crops or
c la
c buildi
buildings,
ngs, roy
royalt
alties
ies,, ins
inspec
pectio
tion
n cer
certifi
tificat
cates,
es, char
charges
ges for acc
access
ess to the
Working Areas, facilities for visits to the Working Areas by Others and
. payments for the provision and use of equipment,supplies and services
s (excluding accommodation) for catering, medical facilities and first aid,
e recrea
recreatio
tion,
n, san
sanita
itatio
tion,
n, sec
securit
urity,
y, copy
copying
ing,, tel
teleph
ephones
ones,, tel
telex,
ex, fax
fax,, rad
radio,
io,
s
u
in la
CCTV, surveying, setting out, computing and hand tools not powered by
a c compressed air.
mn
ito 42 Payment
Payments
s for
for can
cancel
cellat
lation
ion cha
charge
rges
s aris
arising
ing fro
from
m a com
compens
pensati
ation
on even
event.
t.
p
o 43 Payments
Payment s to publi
public
c author
authoriti
ities
es and
and other
other prope
properly
rly cons
constit
titute
uted
d author
authoriti
ities
es of
s charges which they are authorised to make in respect of the works.
y e
r s 44 Consuma
Cons umabl
bles
es and eq
equi
uipme
pment
nt pr
prov
ovid
ided
ed by th
the
e Contractor for the Project Man-
a u
d la ager’s and Supervisor’s office.
n c
o n
c 45 Spec
Specia
iali
list
st se
serv
rvic
ices
es..
e ito
s
p
o Manufacture and 5 The followi
following
ng components
components of the
the cost
cost of manufac
manufacture
ture and fabrica
fabrication
tion of Plant
Plant
fabrication and Materials, which are
s
t
n . wholly or partly designed specifically for the works and
t e
s n . manufactured
manufac tured or fabric
fabricated
ated outside the Worki
Working
ng Areas
Areas..
o o
c p
m
51 Amou
Amount
nts
s pa
paid
id by the Contractor.
o
c
Desi
Design
gn 6 The foll
followi
owing
ng compon
component
ents
s of the cos
costt of desi
design
gn of the works and Equipment
done outside the Working Areas.
t 61 The tota
totall of the hour
hours
s worke
worked
d by emplo
employee
yeess multi
multipli
plied
ed by the
the hourly
hourly rate
rates
s
c
a ta stated in the Contract Data for the categories of employees listed.
tr a
n d
o 62 An amount
amount for
for over
overhea
heads
ds calc
calcul
ulat
ated
ed by mult
multipl
iplyi
ying
ng this
this tota
totall by the perc
percen
en--
c
tage for design overheads stated in the Contract Data.
63 The cost
cost of trav
travel
el to
to and fro
from
m the Wor
Workin
king
g Areas
Areas for
for the
the cate
categor
gories
ies of desig
design
n
employees
employees listed in the Contr
Contract
act Data.
Insura
Insuranc
nce
e 7 The follo
following
wing are deduct
deducted
ed from cost
. costs against which this contra
contract
ct required the Contractor to insure and
. other costs paid to the Contractor by insurers.

CONTRACT DATA
Part one – Data provided by the Employer
Completion of the data in full, according to the Options chosen, is essential to

create a complete contract.
Statements given in all

contracts
s
e e
1 General . The condit
conditions
ions of contra ct are the core clauses and the clauses for main
contract r s
o u
Option . . . . , dispute
dispute resolu
resolution
tion Optio
Option
n . . . and seconda
secondary
ry Options
Options . . . of the
the c a
l
c
NEC3 Engineering and ConstrConstructio
uction
n Contra
Contract
ct April 2013.
. The works are
.............................................................. s
e
s
The Employer is u
i a
n
.
l
a c
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . mn
o
it
p
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . o
..............................................................
s
. The Project Manager is y e
r s
a u
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d a
l
n c
o n
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c o
e it
s
.............................................................. p
o
. The Supervisor is
s
t
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n
t e
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n
o o
c p
.............................................................. m
o
c
. The Adjudicator is
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
t
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c
a
r
a
t
t
.............................................................. n
a
d
o
c
. The Works Information is in
..............................................................
..............................................................
..............................................................
. The Site Information is in
..............................................................
..............................................................
..............................................................

®
. The boundaries of the site are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The language of this contract is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The law of the contract is the law of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The period for reply is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . we
week
eks.
s.
. The Adjudicator nominating body is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The tribunal is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..................................... .........................
. The following matters will be included in the Risk Register
..................................... .........................
..................................... .........................
s ..................................... .........................
e
re s
o u
c la 3 Time . The starting date is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
. The access dates are
Part of the Site Date
s
e 1 . .. . . . . . . . . . . . . . . . . .. .. .. ...........................
s
u
i la
n
2 . .. . . . . . . . . . . . . . . . . .. .. .. ...........................
a c
mn 3 . .. . . . . . . . . . . . . . . . . .. .. .. ...........................
ito
p
o . The Contractor subm
submits
its rev
revise
ised
d pro
progra
grammes
mmes at inte
interva
rvals
ls no lon
longer
ger tha
than
n
s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . we
week
eks.
s.
e
ry s
u
a
d la 4 Testing and Defects . The defects date is . . . . . weeks after
after Completi
Completion
on of the whole of the works.
n c
o n
c The defect correction period is . . . . . . . . . . . . . . . . . . . . . . weeks
weeks exce
except
pt that
that
ito
.
e
s
p The defect correction period for . . . . . . . . . . . . . is . . . . . . . . . . . . we
week
eks
s
o .
. The defect correction period for . . . . . . . . . . . . is . . . . . . . . . . . . . we

week
eks.
s.
ts
n
t e 5 Paymen
Paymentt . The currency of this contract is the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s n
o o The assessment interval is . . . . . . . . . . . . . . . . . wee
weeks
ks (not
(not more
more than
than five).
five).
c p .
m
o . The interest rate is . . . . . % per
per annum
annum (not
(not less
less than
than 2)
2) above
above the
the . . . . . .
c
rate of the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ba
bank
nk..
t
c a
a
r t
t a
n d
o
c

®
Contract Data Part 1
6 Compensation events . The place where weather is to be recorded is

..............................................................
. The weather measurements to be recorded for each calendar month are
. the cumulative rainfall (mm)
. the number of days with rainfall more than 5 mm
. the number of days with minimum air temperature less than 0 degrees
Celsius
. the number of days with snow lying at . . . . . . . . . . . . . . . . . . ho
hour
urs
s GMT
GMT
. and these measurements:
..................................... ............. .........
..................................... ............. .........
..................................... ............. .........
s
. The weather measurements are supplied by . . . . . . . . . . . . . . . . . . . . . . . . . . e e
r s
o u
. The weather data are the records of past weather measurements for each c a
l
c
calendar month which were recorded at . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
and which are available from . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s
.............................................................. e
s
u
i a
n l
Where no recorded data are available a c
mn
o
it
. Assume
Assumed
d val
values
ues for the ten yea
yearr ret
return
urn weather data for eac
weather each
h weather
measurement for each calendar month are p
o
.............................................................. s
y e
.............................................................. r s
a u
d a
l
.............................................................. n c
o n
c o
.............................................................. e it
s
p
o
8 Risks and insurance . The mi
The mini
nimum
mum li limi
mitt of in
inde
demni
mnity
ty fo
forr in
insu
sura
rance
nce in re
resp
spec
ectt of lo
loss
ss of or
damage to property (except the works, Plant and Materials and Equipment) s
t
and liability for bodily injury to or death of a person (not an employee of the n
Contractor) caused by activity in connection with this contract for any one t e
s n
event is o o
c p
m
.............................................................. o
c
. The mi
The mini
nimum
mum li limi
mitt of in
inde
demni
mnity
ty fo
forr in
insu
sura
ranc
nce
e in re
resp
spec
ectt of de
deat
ath
h of or
bodily injury to employees of the Contractor arising out of and in the course
of their employment in connection with this contract for any one event is t
c
a a
.............................................................. r
t
t
a
n d
o
c
Optional statements If the tribunal is arbitration
. The arbitration procedure is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The place where arbitration is to be held is
..............................................................
. The person or organisation who will choose an arbitrator
. if the Parties cannot agree a choice or
. if the arbitration procedure does not state who selects an arbitrator is
..............................................................

®
If the Employer has decided the completion date for the whole of the works
. The completion date for the whole of the works is . . . . . . . . . . . . . . . . . . . . . .
If the Employer is not wil

willin
ling
g to take over the works before the Comp
Completion
letion
Date
. The Employer is not willing to take over the works before the Comple
Completion
tion
Date.
If no programme is identified in part two of the Contract Data

. The Contractor is to submit a first programme for acceptance within . . . . . . .
weeks of the Contract Date.
If the Employer has identified work which is to meet a stated condition by a

key date
s
e e
r s . The key dates and conditions to be met are
o u
c la
c condition to be met key date
1 . .. . . . . . . . . . . . . . . . . .. .. .. ...........................
s 2 . .. . . . . . . . . . . . . . . . . .. .. .. ...........................
e
s
u 3 . .. . . . . . . . . . . . . . . . . .. .. .. ...........................
in la
a c
mn If the period in which payments are made is not three weeks and Y(UK)2 is
ito not used
p
o . The period within which payments are made is . . . . . . . . . . . . . . . . . . . . . . . .
s
y e If Y(UK)2 is used and the final date for payment is not 14 days after the date
r s
a u when payment is due
d la
n c
o n . The period for payment is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
e ito
s
p If there are additional Employer’s risks
o
. These are additional Employer’s risks
ts
n 1............................................................
t e
s n 2............................................................
o o
c p
m 3............................................................
o
c
If the Employer is to provide Plant and Materials
. The insurance against loss of or damage to the works, Plant and Materials
t
c
a a is to include cover for Plant and Materials provided by the Employer for an
r
t
t
a
amount of
n d
o
c ..................................... .........................

®
If the Employer is to pro

provid
vide
e any of the insuranc
insurances
es sta
stated
ted in the Insuranc
Insurance
e
Table
. The Employer provides these insurances from the Insurance Table
1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s
e e
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r s
o u
c a
l
c
If additional insurances are to be provided
. The Employer provides these additional insurances
1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s
e
s
u
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i a
n l
a c
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . mn
o
it
2. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p
o
s
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . y e
r s
a u
3. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d a
l
n c
o n
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c o
e it
s
The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p
o
. The Contractor provides these additional insurances
s
t
1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n
t e
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n
o o
c p
2. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m
o
c
t
Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c
a
r
a
t
t a
n d
If Option B or D is used o
c
. The method of measurement is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
amended as follows .............................................
follows
............................... ............. ............. .....
............................... ............. ............. .....

®
If Option C or D is used
. The Contractor ’s share percentages and the share ranges are
share range Contractor ’s share percentage
less than . . . . . . . . . . . . . . . . . % . .. .. .. .. .. .. .. .. .. .. .. .. .. %
from . . . . . . . .% to
to . . . . . . . . % . .. .. .. .. .. .. .. .. .. .. .. .. .. %
from . . . . . . . .% to
to . . . . . . . . % . .. .. .. .. .. .. .. .. .. .. .. .. .. %
greater than . . . . . . . . . . . . . . . % . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
If Option C, D, E or F is used
. The Contractor prepares forecasts of Defined Cost for the works at intervals
no longer than . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . we
week
eks.
s.
s
e e . The exchange rates are those published in . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
r s
o u
c la on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d
(dat
ate)
e)..
c
If Option X1 is used
s . The proportions used to calculate the Price Adjustment Factor are

e
s
u 0. . . . . . . . . . . linked to the index for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i la
n
a c 0. . . . . . . . . . . ................................
mn
ito 0. . . . . . . . . . . ................................
p
o 0. . . . . . . . . . . ................................
s 0. . . . . . . . . . . ................................
y e
r s
a u 0. . . . . . . . . . . ................................
d la
n c
o n 0. . . . . . . . . . . non-adjustable
c
e ito ———————
s
p 1.00
o
. The base date for indices is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ts
n . The indices are those prepared by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
t e
s n
o o If Option X3 is used
c p
m
o . The Employer will pay for the items or activities listed below in the currencies
c
stated
items and activities other cur
urrrenc
ncyy total maximu
mum
m pay
aym
ment
t in the currency
c
a a
r
t
t
a
. . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . . .. . .. . . . .. . .. . .. . . .. . . .. . .
n d
o
c . . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . . .. . .. . . . .. . .. . .. . . .. . . .. . .
. . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . . .. . .. . . . .. . .. . .. . . .. . . .. . .
. . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . . .. . .. . . . .. . .. . .. . . .. . . .. . .
. The exchange rates are those published in . . . . . . . . . . . . . . . . . . . . . . . . . . .

on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d
(dat
ate)
e)..

®
. The completion date for each section of the works is
section description completion date
1 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .
2 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .
3 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .
4 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .
If Options X5 and X6 are used together

. The bonus for each section of the works is
section description amount per day
s
1 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. . e e
r s
o u
2 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. . c a
l
c
3 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .
4 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .
s
e
s
Remainder of the works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . u
i a
n l
a c
If Options X5 and X7 are used together mn
o
it
.
Delay damages for each section of the works are p

o
section description amount per day
s
1 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. . y e
r s
a u
2 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. . d a
l
n c
o n
3 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. . c o
e it
s
4 . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. . p
o
Remainder of the works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

s
t
n
If Option X6 is used (but not if Option X5 is also used) t e
s n
o o
. The bonus for the whole of the works is . . . . . . . . . . . . . . . . . . . . . . . per day. c p
m
o
c
If Option X7 is used (but not if Option X5 is also used)
. Delay damages for Completion of the whole of the works are . . . . . . per day.
t
c
If Option X12 is used a
r
a
t
t a
n
. The Client is o
d
c
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..............................................................
. The Client’s objective is
..............................................................
..............................................................
..............................................................
..............................................................
..............................................................
..............................................................

®
. The Partnering Information

Information is in
..................................... .........................
..................................... .........................
..................................... .........................
..................................... .........................

. The amount of the performance bond is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The amount of the advanced payment is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The Contractor repay repays s the ins instal
talment
ments s in assassess
essmen
ments
ts sta
starti
rting
ng not les
less
s
s
e e than . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . wee
weeks
ks after
after the
the Contra
Contract
ct Date.
Date.
r s
o u
c la . The instalments are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
..................................... .........................
(either an amount or a percentage of the payment otherwise due)
s
e An advanced payment bond is/is not required.
s .
u
i la
n
a c If Option X16 is used
mn
ito . The retention free amount is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
p
o . The retention percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
s
y e If Option X17 is used
r s
a u
d la . The amounts for low performance damages are
n c
o n
c amount performance level
e ito
s
p ............. for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
o
............. for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ts ............. for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
n
t e
s n ............. for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
o o
c p
m
o If Option X18 is used
c
. The Contractor’s liability to the Employer for indirect or consequential loss is
limi
limite
ted
d to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
t .
c
a
r
a
t
For any one
damage event,
to the the Contractor’s liability to the Employer for loss of or
Employer’s property is limited to. . . . . . . . . . . . . . . . . . . . . . .
t a
n d
o
c
. The Contractor’s liability for Defects due to his design which are not listed
on the Defects Certificate is limited to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The Contractor’s to tota
tall li
liab
abililit
ityy to th thee Employer for al alll mamatt tter
erss ar aris
isin
ingg
underr or in con
unde connect
nectionion witwithh thi
thiss cont
contracract,t, oth
other er tha
than n exc
exclud
ludeded matmatter ters,
s,
is li
limi
mite
ted
d to. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. The end of lia
liabil
bility
ity date is . . . . . . . . . . . .years after the Completion of the
date
whole of the works.
If Option X20 is used (but not if Option X12 is also used)

. The incentive schedule for Key Performance Indicators is in . . . . . . . . . . . . . .
. A report of performance against each Key Performance Indicator is provided
at intervals of . . . . . . . . . . mon
months
ths..

®
If Option Y(UK)1 is used and the Employer is to pay any charges made and is
paid any interest paid by the project bank
. The Employer is to pay any charges made and is paid any interest paid by
the project bank.
If Option Y(UK)3 is used

. term person or organisation
. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. ..
If Options Y(UK)1 and Y(UK)3 are both used s

e e
r s
. term person or organisation o u
c a
l
c
The
The pr
prov
ovis
isio
ions
ns of Op
Opti
tion
on Y(
Y(UK
UK)1
)1 Name
Named
d Su
Supp
ppli
lier
ers
s
If Option Z is used
s
The additional conditions of contract are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e
.
s
u
.............................................................. i a
n l
a c
mn
o
it
p
o
s
y e
r s
a u
d a
l
n c
o n
c o
e
s ti
p
o
s
t
n
t e
s n
o o
c p
m
o
c
t
c
a a
r t
t a
n d
o
c

Part two – Data provided by the Contractor
Completion of the data in full, according to the Options chosen, is essential

to create a complete contract.
Statements given in all .

The Contractor is
contracts
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..................................... .........................
. The direct fee percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
s
e e . The subcontracted fee percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
r s
o u
c la . The working areas are the Site and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
. The key people are
(1) Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s
e
s Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
u
in la Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a c
mn
ito ..................................... .........................
p
o Qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
y e
r s
a u ..................................... .........................
d la
n c (2) Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
o n
c
e ito Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s
p
o
Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..................................... .........................
ts
n
t e Qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
s n
o o
c p Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
m
o
c ..................................... .........................
. The following matters will be included in the Risk Register
t
..................................... .........................
c
a
r
a
t ..................................... .........................
t a
n d
o
c
..................................... .........................
..................................... .........................
Optional statements If the Contractor is to provide Works Information for his design
. The Works Information for the Contractor’s design is in
..................................... .........................
..................................... .........................
..................................... .........................
..................................... .........................
..................................... .........................
..................................... .........................

®
If a programme is to be identified in the Contract Data

. The programme identified in the Contract Data is . . . . . . . . . . . . . . . . . . . . . .
If the Contractor is to decide the completion date for the whole of the works
. The completion date for the whole of the works is . . . . . . . . . . . . . . . . . . . . . .
If Option A or C is used
.
The activity schedule is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option B or D is used
. The bill of quantities is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Option A, B, C or D is used
. The tendered total of the Prices is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s
e e
r s
o u
If Option F is used c a
l
c
. Work which the Contractor will do himself is
activity price (lump sum or unit rate)
s
e
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . .. . . . . .. . . . . .. . . . . . .. . s
u
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . .. . . . . .. . . . . .. . . . . . .. . i a
n l
a c
mn
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . .. . . . . .. . . . . .. . . . . . .. . o
it
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . .. . . . . .. . . . . .. . . . . . .. . p
o
If Option Y(UK)1 is used s

y e
r s
. The project bank is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a u
d a
l
. named suppliers are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n c
o n
c o
e it
If Option A or B is used s
p
o
Data for the Shorter . The percentage for people overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.
%.
Schedule of Cost s
t
. The published list of Equipment is the last edition of the list published by n
Components t e
.............................................................. s n
o o
c p
. The percentage for adjustment for Equipment in the published list is m
o
c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . % (sta
(state
te plu
plus
s or minu
minus)
s)..
. The rates for other Equipment are
t
c
Equipment size or capacity rate a
r
a
t
t
. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . .. . . .. . .. . . . n
a
d
o
c
. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . .. . . .. . .. . . .
. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . .. . . .. . .. . . .
. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . .. . . .. . .. . . .
. The hourly rates for Defined Cost of design outside the Working Areas are
category of employee hourly rate
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . .. . . . . .. . . . . . .. . . . .. .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . .. . . . . .. . . . . . .. . . . .. .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . .. . . . . .. . . . . . .. . . . .. .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . .. . . . . .. . . . . . .. . . . .. .
. The percentage for design overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.

%.

®
. The categories of design employees whose travelling expenses to and from

the Working Areas are included in Defined Cost are
..................................... .........................
..................................... .........................
..................................... .........................
..................................... .........................
If Option C, D or E is used
Data for Schedule of Cost . The listed items of Equipment purchased for work on this contract, with an
Components on cost charge, are
Equipment time-related charge per time period
s . . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . .. . . . . .. . . . . .. per . . . . . . . . .
e e
r s
o u . . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . .. . . . . .. . . . . .. per . . . . . . . . .
c la
c
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . .. . . . . .. . . . . .. per . . . . . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . .. . . . . .. . . . . .. per . . . . . . . . .
s
e The rates for special Equipment are
s .
u
i la
n
Equipment size or capacity rate
a c
mn . . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .
ito
p
o . . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .
s . . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .
y e
r s . . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .
a u
d la
n c
o n . The percentage for Working Areas overheads is . . . . . . . . . . . . . . . . . . . . . %.
%.
c
e ito
s The hour
hourly
ly rat
rates
es for Defi
Defined
ned Cos
Costt of manu
manufac
factur
ture
e and fab
fabric
ricati
ation
on out
outsid
side
e
p .
o the Working Areas are

ts
n
t e . . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . .. . . . . .
s n
o o . . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . .. . . . . .
c p
m
o . . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . .. . . . . .
c
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . .. . . . . .
t . The percentage for manufac

manufacture
ture and fabrication overheads is . . . . . . . . . . %.
fabrication
c
a a
r t
t a
n d
o
c
Data for both schedules of . The hourly rates for Defined Cost of design outside the Working Areas are
cost components
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . .. . . . . .
. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . .. . . . . .
. The percentage for design overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.

%.

®
. The cat
catego
egorie
ries
s of des
design
ign empl
employe
oyees
es who
whose
se tra
travell
velling
ing exp
expens
enses
es to and
from the Working Areas are included as a cost of design of the works and
Equipment done outside of the Working Areas are
..............................................................
..............................................................
..............................................................
..............................................................
Data for the Shorter . The percentage for people overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.

%.
Schedule of Cost . The published list of Equipment is the last edition of the list published by
Components
.............................................................. s
e e
r s
. The
The pe
perc
rcen
enta
tage
ge fo
forr ad
adju
just
stmen
mentt fo
forr Equ
Equip
ipme
ment
nt in th
the
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Index by clause numbers (Option clauses indicated by their letters, main clause heads by bold numbers).
Terms in italics are identified in Contract Data, and defined terms have capital initial letters.
acceleration 36 , A36.3, B36.3, C36.3, D36.3, E36.4, Acts

F36.4 Contracts (Rights of Third Parties) (1999) Y(UK)3
compensation events 60.1(9) Housing Grants, Construction and Regeneration
Key Date 36.1 (1996) as amended by the Local Democracy,
quotations 36.1, B11.2(21), D11.2(21) Economic Development and Construction Act
acceptance 2009 W1 , W2 , Y(UK)2
addition to Working Areas 15.1 additional conditions of contract Z1
conditions of subcontract 26.3 adjudication
contract data for subcontract C26.4, D26.4, E26.4, dispute resolution W1.3(111), W2.3(112)
F26.4 timings W1.3(8), W1.3(11),
Contractor’s communication 13.4, 13.8, 14.1 W2.3(2)(8)(1112)
Contractor’s design 21.2, 21.3 Adjudication Table W1.3(1)
Defects 44 , 60.1(1)(9) Adjudicator
Equipmentt design 23.1
Equipmen decisions 51.3
form of communic
communication
ation 13.1 dispute resolution W1.2(1-5), W2.2(1 5)
insurance policies/certificates 85.1, 87.1, 87.2 nominating body W1.2(3), W2.2(3)
programme (first/revised) 31.3, 32.2, 50.3, not arbitrator W1.2(2), W2.2(2)
64.12, A31.4, A36.3, B36.3, C31.4, C36.3, replacement W1.2(4), W2.2(4)
D36.3 resignation of W1.2(3)
quotations 44.2, 60.1(9), 62.3, 65.1, A36.3, tribunal W1.3(2)(10), W2.3(11)
A65.4, B36.3, C36.3, D36.3, E36.4, F36.4 tribunal reviews W1.4(14)(6), W2.4(13)
reasons
reaso ns for withholding
withholding 13.4, 13.8, 15.1, 21.2, administration order 91.1
23.1, 24.1, 26.23, 31.3, 60.1(9), 85.1, advanced
advance d payment 93.1, X14.13
87.1, A54.3, C26.4, D26.4, E26.4, F26.4, repayment X14.3
X13.1 advanced
advance d payment bond X14.2
replacement Contractor’s employee 24.1 advanced payment(s) 93.1, X14.1 3
subcontract conditions 26.3 agents of Adjudicator W1.2(5), W2.2(5)
Subcontractor 26.2, 91.2 agreement, Parties/Party 12.4
acceptance procedure C11.2(25), D11.2(25), ambiguities 17 , 60.3, 63.8, B60.6, D60.6
E11.2(25) amount due
Works Information F11.2(26) adjustment
adjus tment for inflati
inflation
on X1.1(b
X1.1(b),
), X1.2, X1.4,
Accepted Programme 62.2 X1.5
absence 64.2 and advanced payment repayme
repaymentnt 93.1,
and Activity Schedule A54.2, A54.3, C54.2, C54.3 X14.3
changes 32.1, 63.7 assessing 50 , 51.1, 51.3, 90.4, 93.1, C50.6,

dates/times 33.1, 60.1(2)(3)(5), 63.3
definition 11.2(1) C53.3
X1.4 4, D50.6, E50.7, F50.7, X1.1(b), X1.2,
prevention 19.1, 60.1(19) Contractor’s share D53.78
termination 91.7 correction of assessment 50.5, 51.3, X1.2
see also programme definition 50.2
access 27.2, 43.4 payment 51.1, 51.3
to Site 31.2 retention in 93.1, X16.1
and use of Site 33 on termi
termination
nation 90.2, 90.4, 93.1, 93.2, A93.3
access date 30.1, 31.2 amount retained 50.3, X16.1, X16.2
Site 33.1 applicable
applica ble law 11.2
11.2(5),
(5), 21.2, 23.1, 84.2
accounts and records, Contractor’s C11.2(25), C52.2, tests and inspections 40.1
C52.3, D11.2(25), D52.23, E11.2(25), E52.2, approval from Others, Contractor’s design 27.1
E52.3, F11.2(26), F52.2, F52.3 arbitration procedure W1.4(5), W2.4(4)
actions 10 , 11.2(13,14), 14.2, 16.3, X12.2 arrangement with creditors 91.1
activity schedule A11.2(20), C11.2(20) assessment
Activity Schedule A11.2(20,30), A31.4, A54.1 3, Adjudicator W1.3(7), W2.3(7)
A63.12, C11.2(20)(30), C31.4, C54.13, amount due 50 , 51.1, 51.3, 90.4, 93.1, C50.6,
C63.12 C53.3, C53.4, D50.6, D53.7, D53.8, E50.7,
revised A54.2, A54.3, C54.2, C54.3 F50.7,, X1.1(b
F50.7 X1.1(b),
), X1.2, X1.4, X1.5

®
Index
compensation events 62.23, 63 , 64 , 65.12, indemnity against 83.1, 83.2

A63.10, A63.12, A65.4, B63.1013, C52.2, co-operation at risk reduction meeting 16.3
C63.1112, C63.15, D11.2(25), D52.2, co-operation with Others 25.13
D63.13, D63.15, E11.2(25), E52.2, E63.15, co-operation and trust 10.1, 26.3, X12.3(1)
F52.2, X1.3 communications 13
Contractor’s share C53.1, C53.34, C93.4, C93.6, and acceptance of submis
submission
sion 13.4, 13.8, 14.1
D53.5, D53.78, D93.56 address to which sent 13.2
Defect(s) correction cost 45.2 Adjudicator W1.3(6), W2.3(6)
interest 51.2, 51.3 assessment of compens
assessment compensation
ation events for
tests/inspections cost 40.6 Subcontractors C52.2, D52.2, E52.2, F52.2
assessment date 50.1, 50.4, 51.1 2, C11.2(29), certificate(s) 13.6
D11.2(29), E11.2(29), F11.2(29), X7.2, Y2.2 form defined 13.1
assessment interval 50.1 language
languag e for 13.1
assignment
assign ment of benefit 92.2 notification(s) 13.7
Authorisation period for reply 13.3, 13.5
Projectt Bank Account Y1.1(1), Y1.9, Y1.10
Projec receipt of 13.2
availability of resources C11.2(25), D11.2(25), time allowed for reply 13.3, 13.5, 31.3, 32.2,
E11.2(25) 60.1(6)
time when effec
effective
tive 13.2
bank bonds X13.1, X14.2 compensation
bankruptcy 91.1 Employer’s risk 80.1
base date X1.1(a), X1.3 see also indemnity
Base Date Index X1.1(a) compensation events 60
bill of quantities B11.2(21), D11.2(21)
quantities amount due affected by 51.3
Bill of Quantities B11.2(21)(28)(31), B55.1, assessing
assess ing 62.23, 63, 64, 65.12, A63.10, A63.12,
B60.47, B63.13, D11.2(21)(31)(33), D55.1, A65.4, B63.1013, C52.2, C63.1112,
D60.47, D63.13 C63.15, D11.2(25), D52.2, D63.13, D63.15,
binding decisions, Adjudicator W1.3(10), W2.3(11) E11.2(25),
E11.2(25 ), E52.2, E63.15, F52.2, X1.3
bodily injury 84.2 assumptions made 60.1(17), 61.6, 63.7, 65.2
bond(s) 91.2, X13.1, X14.2 Completion Date affected by 62.2, A65.4, B65.4,
bonus for early Completion
Completion X6 C65.4, D65.4
boundaries of the site 11.2(15) Completion Date notification 61.3
breach of contract 60.1(18) Contractor 60.1(1)(8)(10)(12)(19), 60.2, 60.3,
breach of statutory duty 80.1 61.16, F20.5
and Defined Cost 61.4
calculations, assessment of compensation events for definitions 13.8, 60.1, B60.4 7, D60.4D60.7,
Subcontractors C52.2, D52.2, E52.2, F52.2 X2.1, X14.2
certificate(s)/certification implementing 32.1, 65 , A65.4, B65.4, C65.4,
communication
communic ation of 13.1, 13.6 D65.4, E65.3, F65.3
Completion 30.2, 35.2 Key Dates affec
affected
ted by 60.1(4
60.1(4),
), 61.3, 62.2, A65.4,
Defects 43.3, 50.1 B60.5, B65.4, C65.4, D60.5, D65.4
payment 50.5, 51.13, 90.4, 91.4 notifying 61 , X2.1
take-over date 35.3, 60.1(15) payment to Subcontractor D11.2(25), C11.2(25),
termination
changed 90.1,
Completi on90.3,
Completion 90.5, C93.4, D93.5
Date X7.2 E11.2(25),
performance F11.2(26)
suspension Y2.4
changed decision(s) 60.1(8), 61.13 Prices
Price s affec
affected
ted by 62.2, 63.1, A63.10, A65.4,
change(s) in Activity Schedule A54.2, A63.12, C54.2, B60.6, B63.10, B65.4, C65.4, D60.4, D60.6,
C63.12 D63.13, D65.4, X2.1
change(s)
change( s) in forecast Prices, Completion
Completion Date and Key Prices not affected by 61.4
Dates due to compensation events E65.3, F65.3 Project Manager’s assessments 64 , A63.10, A65.4,
change(s) in the law X2 B63.10, C63.15, D63.15, E63.15
change(s) of Prices, Completion Date and Key Dates quotations 61.4, 61.5, 62 , 64.1, 64.34, 65.1,
due to compens
compensation
ation events A65.4, B65.4, A11.2(22), B11.2(22), C11.2(25),
C65.4, D65.4 D11.2(25), E11.2(25), F11.2(26), X2.1
change(s) of Prices due to compensation events 62.2, completed activities A11.2(27)
63.1, A63.12, B60.6, B63.13, C63.11, D60.6, completed work, definition B11.2(28)
D63.13 Completion 30
change(s)
change( s) in Works Infor
Information
mation 14.3, 18.1, 44.1, acceleration of 36.1
44.2, 60.1(1), 63.89 bonus paid if early X6.1
civil commotion/war risks 80.1 certification of 30.2, 35.2
claims and compensation
compensation events 61.4, B60.5, D60.5
Employer’s risk 80.1 decision on date 30.2

®
Completion (continued) terms identified 11.1

definition 11.2(2) third party rights Y3.1
early warning of possible delay 16.1 time allowances 13.4, 31.1
Key Date 16.1 weather data/weather measurement 60.1(13)
and programme 31.2, 32.2 Contract Date 11.2(4), B60.4, D60.4, X2.1, X4.1,
section of the works X5.1 X13.1, X14.2
and take over of works 35.12, 35.3, 60.1(15), Accepted Programme 60.1(19)
X16.1, X16.2 compensation events 60.1(12)(19)
whole of works 32.2, 50.1, 60.1(13), 92.1, 93.2, prevention 19.1
C20.4, C53.3, D20.4, D53.7, E20.4, F20.4, termination 91.7
X1.2, X16.1 Contract
Contract Date, Proje
Project
ct Bank Accoun
Accountt Y1.2
work necessary 11.2(2)(13) Contractor
Completion
Comple tion Date (completion date) acceleration 36.1, 36.2
accelerated programme 36.1, A36.3, B36.3, C36.3, acceptance of communication/proposal/submission
D36.3, E36.4, F36.4 13.4, 13.8, 14.1, 15.1, 21.2, 87.2
change to later date X7.2 access 27.2, 43.4
and compensation events 60.1(13)(15), 61.4, access and use of Site 33.1
62.2, 63.3, A65.4, B65.4, C65.4, D65.4, accounts and records C11.2(25), C52.2 3,
E65.3, F65.3 D11.2(25), D52.23, E11.2(25), E52.2,
definition 11.2(3) E52.3, F11.2(26), F52.2, F52.3
if Defect(s) accepted 44.2 actions 10.1
notification
notific ation of compen
compensation
sation events 61.3 Activity Schedule A31.4, A54.2, C31.4, C54.2
Price Adjustment Factor calculation X1.2 adding to working areas 15.1
in programme (first/revised) 31.2, 36.1, A36.3, adjudication W1.3(12)(4), W2.3(3)(7)
B36.3, C36.3, D36.3 advanced
advance d payment X14.1, X14.3
rights to change 63.4 advice to Project Manager C20.3, D20.3, E20.3,
section of the works X5.1 F20.3
and take over of works 35.12, 60.1(15) and ambiguities/inconsistencies 17.1
and weather measurement 60.1(13) amount due to be paid to 50.2, 50.4, 51.1
work to be done by 11.2(2), 30.1 assessment of compensation events 62.2, 64.1,
Condition 11.2(9), 25.3, 30.3, 31.2, 63.3, 63.9, A63.14, B63.13, C63.14, C63.15, D63.13,
B60.5, D60.5 D63.15, E63.14, E63.15, F63.14
conditions, identified and defined terms 11.2(9) Bill of Quantities B11.2(28), B63.13, D63.13
conditions of contract certificates
certi ficates issued to 13.6
identified and defined terms 11.1 co-operation 10.1, 25.13
for Subcontract 26.3 compensation events 60.1(1)(8)(10)(12)(19),
conditions of contract 60.2, 60.3, 61.16, F20.5
additional Z1.1 costs 52.1, C40.7, D40.7
interpretation 12.3 decisions communicated to 30.2, 50.1, 60.1(8)
and sectional Completion X5.1 default(s) 91.2, 91.3, 91.6
Contract Data/contract data Defect(s) 11.2(5), 42.2
addresses for communications 13.2 Defect(s) acceptance/non-correction 44.1, 44.2
Adjudicator identified W1.2(3), W2.2(3) Defect(s) correction 11.2(2)(6), 43.1 2, 43.4,

conditions of
conditions of contract
contract Z1.1
11.1 delay45.1 2, C11.2(25),
damages X7.1 D11.2(25), E11.2(25)
currencies
curren cies for payment X3.1, X3.2 delivery of Plant and Materials 41.1, 93.1
delay damages X7.1 early Completion bonus X6.1
documents referred to in 11.2(16)(19) early warning 16.1, 16.2, 16.4, 61.5, 63.5
early Completion
Completion bonus X6.1 Equipment 11.2(7), 23.1, 31.2, 92.2
Employer’s risks 80.1 facilities and services provided/paid for by 40.2
forecasts of Defined Cost C20.4, D20.4, E20.4, F20.4 fault 61.1, 61.4, C11.2(25), D11.2(25),
insurance 84.1, 87.2 E11.2(25), F11.2(26)
low performance damages X17.1 health and safety 27.4
named key person 24.1 illegal/impossible requirements 18.1
payment 51.2, X14.1, X14.3 implementing compensation events 32.1, 65.1,
performance bond X13.1 E65.3, F65.3
performance level X17.1 indemnity 83.1
price adjustment
adjustment for inflation X1.1(c), X1.3 instruction(s) 14.3, 24.2, 27.3, 34.1, 36.1,
programme 11.2(1), 31.1, 50.3 60.1(10), 61.2, 61.46, 62.1, 62.34, 82.1,
start-to-Completion interval 32.2 87.1, 91.6, C26.4, D26.4, E26.4, F26.4, X2.1
for subcontract C26.4, D26.4, E26.4, F26.4 insurance 84.12, 85.1, 85.34, 86.1, 87.13
take over of works 35.1 Key Date 14.3, 30.3

®
Index
leaving Site/Working Areas 92.2 part submission 21.3

liabilities 14.1, 61.4, X15.1 submission to Project Manager 21.2
liability limitation X18.15 use by Employer 22.1
low-performance damages X17.1 and Works Information 21.1, 21.2, 60.1(1)
management responsibility F20.2 Contractor’s employees 24.1
marking of Equipment, Plant and Materials 71.1 insurance 84.1
method of working 35.3, A54.2, C54.2 removing 24.2
non-corrected Defects 45.12 Contractor’s share C50.6, C53, C53.1C53.4, C93.4,
notification of compens
notification compensation
ation events 61.16, X2.1 C93.6, D50.6, D53, D93.56
notified of delegate for Project Manager/Supervisor Contractor ’s share percentage C53.1, D53.5
14.2 Contracts (Rights of Third Parties)
Contracts Parties) Act (1999) Y(UK)3
notified
notifie d of repla
replacement
cement for Project Manager/ Core Group X12.2(3-5)
Supervisor 14.4 composition X12.1(3)
objects of value/historical-interest 73.1 correcting
obligations 91.2 assessment of amount due 50.5, 51.3, X1.2
parent company guarantee X4.1 assumptions about compensation events 60.1(17),
as Party to contract 11.2(11) 61.6
payment(s) 40.6, 45.12, 51.1, 86.1, C50.6, Bill of Quantities mistakes B60.6, D60.6
C52.2, D50.6, D52.2, E50.7, E52.2, F50.7, Defects 11.2(2), 32.1, 40.4, 43 , 45.12,
F52.2, X3.1, X3.2 C11.2(25), D11.2(25), E11.2(25)
performance bond X13.1 cost components data A11.2(22
A11.2(22),), C11.2(2
C11.2(23),
3), C63.15,
period for reply 13.35, 32.2 D11.2(23),
D11.2(2 3), D63.15, E11.2(27), E63.15
physical conditions 60.1(12), 60.2, 60.3 costs
Plant and Materials 27.2, 41.1, 80.1, 92.2, 93.1 additional costs 25.3
prevention 19.1 Contractor 52.1, C40.7, D40.7
programme (first/revised) 11.2(1), 31.13, Defect(s) correction 45.12
32.12, 50.3, 62.2, 64.1, 64.2 due to Adjudicator’s/tribunal’s decision 51.3
Project Bank Account Y(UK)1 Employer’s risk 80.1
proposed instruction/changed-decision 61.2 indemnity against 83.1, 83.2
quotations 36.1, 36.2, 44.2, 62.1 5, 64.1 insurance 86.1, 87.3
reaction
react ion to compensation
compensation event 63.7 test/inspection repeat 40.6
repairs/replacements 82.1 see also excess costs
reply to communic
communication
ation 13.35, 31.3, 32.2, creditors, arrangement made with 91.1
60.1(6), 62.36 ncy of this contract 51.1, C50.6, D50.6, E50.7,
currency
curre
responsibilities 14.1, 20 7, C20.3, C20.4, C26.4, F50.7, X3.1, X3.2
D20.34, D26.4, E20.34, E26.4, F20.24,
F26.4 damage(s)
Risk Register revision 16.4 delay X7.1, X7.2
risks 63.6, 81.1, 84.2, 85.4 Employer’s risk 80.1
searching (for Defects) 42.1 insurance against 84.1
starting/stopping work 30.1, 34.1, 91.6 low performance X17.1
subcontract contract data C26.4, D26.4, E26.4, repair by Contractor 82.1
F26.4 death insurance 84.1
subcontracted
F20.3 work C20.3, D20.3, E20.3, F20.2, decision(s)
Adjudicator or tribunal 51.3
Subcontractor 11.2(17), 26.13 assessment date 50.1
take over of works 35.3, 43.4, 80.1 and compens
compensation
ation events 60.1(8), 61.1, 61.46
termination 80.1, 90.2, 90.4 5, 91.2, 91.4, date of Complet
Completion
ion 30.2
91.67 Project Manager 30.2, 50.1, 60.1(8), 61.1 2,
tests and inspections 40.2, 40.3, 40.5, 40.6, 41.1, 61.46, 63.5, 64.1, C11.2(25), D11.2(25),
C40.7, D40.7 E11.2(25), F11.2(26)
title to objects and materials within Site 73.1, 73.2 risk reduction meeting 16.4
title to Plant and Materials 70.1, 70.2 default(s)
Works Information 11.2(19), 14.3, 63.8 9 Contractor’s 91.2, 91.3, 91.6
Contractor’s design 21 Employer’s 91.6
acceptance 21.2, 21.3 defect correction period 40.5, 43.24, 45.1
approvall from Others 27.1
approva Defect(s)
and Defec
Defectsts 11.2(5
11.2(5)) accepting 44 , 60.1(1)(9)
and Equipment design 23.1 Contractor’s compensation X15.2
liability of Contractor 14.1 Contractor’s liability 11.2(5), X15.1, X18.3
limitation of Contractor’s liability X15.1 correcting 11.2(2)(6), 32.1, 40.4, 43 , 45.2,
management by Contractor F20.2
management C11.2(25), D11.2(25), E11.2(25)

®
Defect(s) (continued) discounts, deduction from prices 52.1

correction after Completion C11.2(23) dismantling (during searching) 42.1
defect correction period 40.5, 43.24, 45.1 dispute resolution
definition 11.2(5) unless United Kingdom Housing Grants,
liability limitation X18.3 Construction and Regeneration Act (1996) as
loss/damage/wear due to 80.1 amended by the Local Democracy, Economic
low perfo
performance
rmance damages X17.1 Development
Develo pment and Constr
Constructio
uction
n Act 2009
notifying 11.2(6), 42.2, 43.12 applies W1
and priced contract(s) A11.2(27), B11.2(28) when United Kingdom Housing Grants, Construction
searching (for) 42.1, 60.1(10) and Regeneration Act (1996) as amended by
and tests/inspections 40.4, 40.6 the Local Democracy, Economic Development
uncorrected 45 , 60.1(9
60.1(9)) and Construction
Construction Act 2009 applie
applies
s W2
Defects Certificate 11.2(6), 43.3
and assessment of amount due 50.1 early Completion bonus X6.1
and Contractor’s risks 81.1 2 early warning 16
and Employer’s risks 80.1 effects 16.1
and insurance cover 84.2 Key Date 16.1
Key Performance Indicators X20.2 responsibility 16.1, 61.5, 63.5, C11.2(25),
liability limitation X18.3 D11.2(25), E11.2(25), F11.2(26)
low perfo
performance
rmance damages X17.1 Risk Register 16.1, 16.34
and retent
retention
ion X16.2 Effect of payment, Project Bank Account Y1.12
defects date 11.2(6), 40.5 employees, of Adjudicator W1.2(5), W2.2(5)
and compens
compensation
ation events 61.7 Employer
searching/notifying Defects 42.12 access 43.4
testing 42.12 access and use of Site 33.1, 60.1(2)
Defined Cost 52 , C11.2(29), D11.2(29), actions 10.1
E11.2(29)(32), F11.2(29)(32) adjudication W1.3(1)
in amount due on termination 93.1, 93.2 advanced payment by X14.13
and compensation events 61.4, 63.12, 63.7, amount due to be paid by 50.2, 51.1
A63.10, B60.4, B63.10, B63.13, C63.11, breach of contr
contract
act by 60.1(1
60.1(18)
8)
D60.4, D63.11, X1.3, X2.1 certificates
certificates issued to 13.6
definition(s) A11.2(22), B11.2(22), C11.2(23), co-operation 25.2, 25.3
D11.2(23), E11.2(23), F11.2(24) compensation events 60.1(1-3)(5)(14)(16)(18)
and Fee calculation 11.2(8), 63.1, C11.2(29), Completion of works on termination 93.1, 93.2
D11.2(29), E11.2(29) Contractor’s design 22.1
forecast C20.4, D20.4, E20.4, F20.4 Contractor’s parent company guarantee X4.1
payment on termina
termination
tion D93.5 dates 31.2, 33.1, 60.1(2)(3)(5)
payments made by Contractor C50.6, C52.2, default 91.6
C52.3, D50.6, D52.2, D52.3, E50.7, E52.2, Defects Certificate 43.3
E52.3, F50.7, F52.2, F52.3 facilities and services provided by 40.2, 60.1(16)
defined terms 11 , X1.1 fault 80.1
Delay/delay hindered
hinder ed by Contractor 91.3
and compensation events 62.2, 63.3, B60.5, D60.5 indemnity 83.1
damages X7.1,
early warning toX7.2
be given 16.1 insurance
as Party to84.1, 85.4,
contract 86.1, 87
11.2(11)
plans to deal with 32.1 payments by 51.1
and priced contract(s) A11.2(27), B11.2(28) payments to C11.2(23), D11.2(23), E11.2(23),
and tests/inspections 40.5, 60.1(11) F11.2(23)
delegation by Project Manager/Supervisor 14.2 performance bond X13.1
delivery, testing and inspection before 41 Plant and Materials 31.2, 80.1
demolition 22.1, 73.2 Project
Project Bank Account Y1.1(3),
Y1.1(3), Y1.6, Y1.8, Y1.9,
design Y1.11, Y1.13
Contractor’s 11.2(5), 21 , 22.1, 23.1, 27.1 programme 31.2, 60.1(5)
Employer’s 80.1 repayment of delay damages X7.1
of Equipme
Equipmentnt 23 replacement of Project Manager/Supervisor 14.4
of works C20.3, D20.3, E20.3, F20.3 responsibilities 83.2, 87.2
see also Contractor’s design rights to change 63.4
direct fee percentage 11.2(8), 93.2 risks 60.1(14), 80 , 81.1, 83.2, 85.4
Disallowed Cost C11.2(23), D11.2(23), E11.2(23), take over of works 35.13, 43.4, 80.1, X6.1, X7.1,
F11.2(24) X16.1, X16.2
definition(s) C11.2(25), D11.2(25), E11.2(25), termination 80.1, 90.2, 91.2 3, 91.67, 92.12,
F11.2(26) 93.12

®
Index
tests and inspections 40.2, 40.6, 60.1(16), C40.7, Housing Grants, Construction and Regeneration Act
D40.7 (1996) as amended by the Local Democracy,
title to Equipment, Plant and Materials 93.1 Economic
Economi c Develo
Development
pment and Constr
Constructio
uction
n Act
title to Plant and Materials 70 , 93.1 2009 W1 , W2 , Y(UK)2
use of works by 11.2(2), 35.3
working with see co-operation identified terms 11
Works Information 22.1, 60.1(1)(5)(16) illegal requirements 18
Employer’s design 80.1 implementing compensation events 32.1, 65 , A65.4,
Equipment B65.4, C65.4, D65.4, E65.3, F65.3
definition 11.2(7) impossible requirements 18
design of 23 Incentive Schedule X20.1, X20.3 5
left on Site 72.1, 80.1 incentive schedule X20.1
loss or damage 84.2 incentives, Partnering X12.4
loss, damage or wear 80.1 inconsistencies 17 , 60.3, 63.8, B60.6, D60.6
marking of 70.1
70.1,, 71 indemnity 83
and programme 31.2 information
rates in Contract Data X1.3 in Activity Schedule A54.1, C54.1
removal of 72 , 92.2, 93.2 in Bill of Quantities B55.1, D55.1
termination 92.2 later recorded 65.2
title 70.1, 70.2, 92.2 in programme 31.2, 31.3, 50.3
use by Employer 92.2 provided to Others 25.1
see also Plant and Materi
Materials
als publicly available 60.2
errors, Adjudicator W1.3(11) see also Site Information; Works Information
excavation materials 73.2 injury insurance 84.1
excess costs, Contractor’s share C53.2 inspection(s) 40 , 60.1(10)(11)
exchange rates C50.6, D50.6, E50.7, F50.7, X3.1 before delivery 41
experienced contractor Contractor’s cost C40.7, D40.7
and compensation events 60.1(12), 60.2, 61.5, 63.5 instalment
insta lment repayment of advanc
advanced
ed payment X14.3
and physical conditions on Site 60.1(12),
60.1(12), 60.2 instruction(s)
and prevention 19.1, 60.1(19), 91.7 compensation events resulting 60.1(1)(4)(7), 61.1
extension of time for decision/quotation/reply 13.5, to Contractor 27.3
62.5 form of communi
communication
cation 13.1
insurance 87.1
facilities and services objects of value/interest 60.1(7)
for tests/inspections 40.2, 42.1, 60.1(16) quotation(s)
quotat ion(s) to be submitted 36.1, 61.12,
see also services 61.56, 62.1, 62.34, 64.1, X2.1
failure to pay in time, actions to be taken 91.4 to remove Contractor’s employee 24.2
fault of Contractor 61.1, 61.4, C11.2(25), on resolution of ambiguities and inconsistencies
D11.2(25), E11.2(25), F11.2(26) 17.1
fault of Employer or his design 80.1 to search (for Defects) 42.1
Fee C11.2(29), D11.2(29), E11.2(29)(32), to stop/not start work 34 , 60.1(4), 91.6
F11.2(29,32) and termination 91.6, 92.2
calculation(s) 11.2(8), 63.1, 93.2, C50.6, D50.6, that change Key Date 14.3
E50.7,
see also F50.7
payment(s) that 60.1(1),
change Works63.8Information
9 14.3, 18.1, 44.2,
fee percentage
percentage see direct fee percentage
percentage insurance
float, provision
provision in progra
programme
mme 31.2 certificates 85.1, 86.1, 87.13
forecasts 61.6, 63.1, 65.2, 93.2, C20.4, C53.3, cover 84
D20.4, D53.7, E20.4, E65.3, F20.4, F65.3 by Employer 84.1, 85.4, 86.1, 87
form of communi
communication
cations
s 13.1 policies 85 , 86.1, 87.13
fraud, and insura
insurance
nce 85.2 signatories 85.1
Insurance Table 84.2
grouping of activities A11.2(27) insurer(s) 85.2, 85.4, X13.1
guarantee(s) 91.2, X4.1 bonds X13.1, X14.2
insurrection
insurr ection,, risks due to 80.1
health and safety interest
Contractor 27.4 assessment of 51.2, 51.3
regulation(s) 91.3 compound calculation 51.4
requirements 31.2 on late payment 51.2
Works Information 27.4 and payment certificate(s) 51.3
historical-interest objects found within Site 60.1(7), repaid delay damages X7.1
73.1 interest rate 51.4

®
interpretation dates when needed 31.2

compensation event 63.8 testing/inspection 40.2, 41.1, 42.1, 60.1(16)
conditions of contract 12.3 title to 73.2
legal 12 see also Plant and Materi
Materials
als
method of measurement B60.6, D60.6
Joining Deed method of worki
working
ng 35.3, A54.2, C54.2
Project Bank Account Y1.1(2), Y1.1(6), Y1.6 military power, risks due to 80.1
mistake(s)
Key Date 30 assessment of amount due 51.3
acceleration 36.1, A36.3, C36.3, D36.3 Bill of Quantities B60.6, D60.6
assessment of compensation events 63.89 multiple currencies X3
and compensation events 60.1(4), 61.3, 62.2,
A65.4, B60.5, B65.4, C65.4, D60.5, D65.4 named person 24.1
Condition 25.3 named suppliers
Contractor 14.3, 30.3 Project Bank Account Y1.1(2
Project Y1.1(2),
), Y1.13
definition 11.2(9) Named Suppliers
early warning 16.1 Project Bank Account, Y1.1(1), Y1.1(2), Y1.1(3),
notification of compensation events 61.3, 61.4 Y1.5, Y1.6, Y1.9, Y1.10
Y1.10,, Y1.13
and programme 31.2 national legislation Y
Project Manager 14.3, 60.1(4) NEC Adjudicator’s Contract W1.2(1), W2.2(1)
rights to change 63.4 NEC contract 26.3, C26.4, D26.4, E26.4, F26.4
Subcontractor failing to meet C11.2(23), negligence 80.1
D11.2(23), E11.2(23), F11.2(23) nominating body, Adjudicator W1.2(3), W2.2(3)
Key Performance Indicators X20 notification
aspect of perfor
performance
mance X20.1 acceptance of quotation(s) 62.3, 65.1
performance reports X20.2 adjudication W1.3(12)(8-9), W2.3(12)(89)
key person 24.1 ambiguities/inconsistencies 17.1
assessment of compensation event 62.3, 64.3,
language of communications 13.1 65.1
language of this contract 13.1 communication of 13.1, 13.7
late payment(s) 51.23, X14.2 compensation events and assumptions 60.1(17),
later recorded information 65.2 61
Latest Index X1.1(b) Contractor’s default 91.2, 91.3
law Defects 11.2(6), 42.2, 43.12
changes in X2 , X2.1 delegate for Project Manager/Supervisor 14.2
and Defect(s) 11.2(5) illegal/impossible requirements 18.1
interpretation 12 implementing compensation events A65.4, B65.4,
national legislation Y C65.4, D65.4, E65.3, F65.3
release of Party from contract 91.5 Project Manager’s assessment 64.3, 65.1
tax(es) 50.2 Project Manager’s decision(s) 63.5, 64.1
tests and inspec
inspections
tions 40.1 proposed instruction/changed-decision 61.2, 62.3
see also Acts replacement of Project Manager/Supervisor 14.4
law of the contract 12.2 termination 90.1
legal rights,national
legislation, interference
Y with 80.1 tests and
notified inspections
Defects, 40.3,
correction 41.1
32.1, 45.2
liability
Contractor’s design 14.1, X15.1 objects of value or histo
objects historical
rical interest
interest 60.1(7
60.1(7),
), 73.1
and insurance 84.2 observing tests 40.3
limitation X18 open market prices 52.1
reduction 83.2 operations
operat ions (in program
programme)
me) 31.2, 32.1
liquidator for company/partnership 91.1 Others (other people)
loss risks 80.1, 84.1 approval by 27.1
low performance at risk reduct
reduction
ion meeting 16.2
damages X17 co-operation with 25.1
see also performance impairment Defect(s) correction by 45.2
lump sum(s) A11.2(30), A63.14, B11.2(28), definition 11.2(10)
B63.13, C11.2(30), C63.14, C93.4, D11.2(31), hindered by Contractor 91.3
D63.13, E63.14, F63.14, Plant and Materials supplied by 80.1
and programme 31.2, 60.1(5)
marking of Equipme
Equipment,
nt, Plant and Materials 71 working with see co-operation
materials and Works Information 60.1(5)
access to 27.2 Own Contract, definition X12.1(2)

®
Index
parent company guarantee X4 performance reports X20.2

Parties/Party performance suspension Y2.4
Adjudicator’s communications W1.3(6), W2.3(6) period
perio d for reply 13.3, 13.4, 32.2, 36.2
Adjudicator’s instructions W1.3(5), W2.3(4) extension agreed 13.5
agreement 12.4 personal injury 84.1
and assessment date 50.1 see also insurance
to contract 11.2(11) physical conditions of Site 60.1(12), 60.2, 60.3
indemnity liability 83.1, 83.2 Plant and Materials 11.2(12)(17)
insurance 84.2, 85.3 access to 27.2, 60.1(2)
prevention 19.1 dates when needed 31.2
to subcontract 26.3 loss of or damage to 80.1, 82.1, 84.1
and termination 90.1, 91.1, 91.5 not used to Provide the Works C11.2(25),
third party rights Y3.1 D11.2(25), E11.2(25)
tribunal reviews W1.4(14), W2.4(13)(5) removal of 92.2
Partnering X12 replacement 82.1, 84.1
actions X12.2 and termination 92.1, 93.1
change of Partnering information X12.3(6) testing/inspection before delivery 41.1
Core Group X12.2(3-5) title 70.1, 70.2, 92.1, 93.1
defined terms X12.1 wastage C11.2(25), D11.2(25), E11.2(25)
early warning X12.3(3) see also Equipment
incentives X12.4 prevention 19
Key Performance Indicators X12.4(12) Price Adjustment Factor(s) X1
Own Contract X12.1(2) assessment of compensation events X1.3
Partnering Information X12.1(4), X12.3(1) calculation of X1.2
representatives X12.2(2) definition X1.1(c)
subcontracting X12.3(9) price adjustment
adjustment use X1.4, X1.5
timetable X12.3(7) Price for Work Done to Date
payment(s) 51 adjustment for inflation X1.4, X1.5
advanced 93.1, X14.13 and assessment of amount due 50.2, 50.3, 93.2,
certified 50.5, 51.13, 90.4 C93.4, D93.5
conditional on success of test or inspection 40.5 and assessment of Contractor’s share C53.14,
Contractor 40.6, 45.2, 51.1, 86.1, C50.6, C52.2, D53.58
D50.6, D52.2, E50.7, E52.2, F50.7, F52.2, definition(s) A11.2(27), B11.2(28), C11.2(29),
X3.12 D11.2(29), E11.2(29), F11.2(29)
dates Y2.2 and retention X16.1
Employer’s insurance 87.3 Prices/prices/prices
Housing Grants, Construction and Regeneration Act and acceleration 36.1, A36.3, B36.3, C36.3, D36.3
(1996) as amended by the Local Democracy, and Activity Schedule A11.2(20)(27), A54.3,
Economic
Economi c Develo
Development
pment and Constr
Construction
uction Act A63.12, C11.2(30), C54.3, C63.12
2009 Y2.23 and Bill of Quantities B11.2(31), B60.4, B60.6,
interest 51.4 B63.13, D11.2(31), D60.4, D60.6, D63.13
late 51.23, X14.2 changes to 63.12
and marking of Equipment, Plant and Materials 71.1 and compensation
compensation events 61.4, 62.2, 63.12,
not made
notice 91.4ion Y2.3
of intent
intention A63.10,
B63.10, A63.12,
B63.13, A65.4,
B65.4, B60.4, B60.6,
C63.12, C63.14,
Projectt Bank Account Y1.7, Y1.8, Y1.9, Y1.10,
Projec C65.4, D60.4, D60.6, D63.13, D65.4,
Y1.11, Y1.12 E63.14, E65.3, F63.14, F65.3, X2.1
taxes 50.2 competitively tendered/open market 52.1
on termin
termination
ation 93.1, 93.2, A93.3
A93.3,, C93.4
C93.4,, C93.6
C93.6,, Contractor’s share C53.1C53.4, D53.5
D93.56 definition A11.2(30), B11.2(31), C11.2(30),
time to be made 51.2, X14.2 D11.2(31), E11.2(32), F11.2(32)
withholding Y2.3 early warning of possib
possible
le increase 16.1
payment certificate 50.5, 51.1, 51.3, 91.4 if Defect(s) uncorrected/accepted 44.2
payment clauses 50 notification of compensation events 61.3
people 24 rights to change 63.4
rates in Contract Data X1.3 and termination 93.2, C93.4, D93.5
see also employees procedures, termination 90.2, 90.3, 92
performance, see also Key Performance Indicators proceedings
performance bond X13 , X13.1 Employer’s risk 80.1
performance impairment indemnity against 83.1, 83.2
early warning of possi
possibility
bility 16.1 procurement procedure C11.2(25), D11.2(25),
see also low performance E11.2(25), F11.2(26)

®
programme 11.2(1), 31 , 50.3, 62.2, 64.1 implementing compensation events 65.1, E65.3,
accelerated 36.1, A36.3, B36.3, C36.3, D36.3, F65.3
E36.4, F36.4 inspection of Contractor’s accounts and records
dates to be shown 31.2, 32.1, A31.4, C31.4 C52.3, D52.3, E52.3, F52.3
revised 32 , 36.1, 62.2, 64.2, A36.3, B36.3, C36.3, instruction(s) 14.3, 17.1, 18.1, 24.2, 27.3, 34.1,
D36.3, E36.4, F36.4 44.2, 60.1(1)(4)(7), 61.12, 61.4, 62.1,
Project Bank Account Y(UK)1 62.34, 82.1, 87.1, 91.6, C26.4, D26.4,
Project Manager E26.4, F26.4, X2.1
acceleration 36.1, A36.3, B36.3, C36.3, D36.3, insurance 85.1, 87.1
E36.4, F36.4 interest on payments 51.3
acceptance of communication/proposal/submission Key Date 14.3, 60.1(4)
13.4, 14.1, 15.1, 21.2, 31.3, 85.1 Key Performance Indicators X20.3
acceptance
accept ance of contra
contract
ct data for subcontract
subcontract C26.4
C26.4,, moving of Equipment, Plant and Materials 70.2, 72.1
D26.4, E26.4, F26.4 notification of compensation events 61.1 6, X2.1
acceptance of quotation 44.2, 60.1(9), 62.3, notification of Contractor’s default 91.2, 91.3
65.1, A36.3, B36.3, C36.3, D36.3, E36.4, notification of implementing compensation events
F36.4 E65.3, F65.3
access 27.2 objects of value/historical-interest 60.1(7), 73.1
Activity Schedule A54.2, C54.2 performance bond X13.1
addition
additi on to working areas 15.1 prevention 19.1
Adjudicator’s reviews/revisions W1.3(5), W2.3(4) programme 11.2(1), 31.1, 31.3, 32.2, 50.3
advanced
advance d payment bond X14.2 Project Bank Account Y1.4, Y1.6, Y1.7, Y1.9, Y1.14
and ambiguities/inconsistencies 17.1 quotations for acceleration 36.12, 60.1(9),
assessment of amount due 50.1, 50.4, 50.5 A36.3, B36.3, C36.3, D36.3
assessment of compensation events 61.6, 63.9, quotations for compensation events 62.1, 62.35
64, A63.10, B63.10, B63.13, C63.15, replacement of 14.4
D63.13, D63.15, E63.15 reply to communic
communication
ation 13.35, 60.1(
60.1(6),
6), 62.3,
assessment of Contractor’s share C53.1, C53.34, 62.56
C93.4, C93.6, D53.5, D53.7 8, D93.56 requestt to remove resou
reques resources
rces from Worki
Working
ng Areas
assessment
asses sment date decid
decided
ed by 50.1 C11.2(25), D11.2(25), E11.2(25)
assessment of Defect(s) correction cost 45.2 Risk Register revision 16.4
assessment of test/inspection cost 40.6 start/stop
start/stop of work 34.1, 60.1(4), 91.6
assumptions about compensation events 60.1(17), subcontract conditions 26.3
61.6 subcontracting C26.4
certificates 13.6, 30.2, 50.5, 51.13, 60.1(15), Subcontractor acceptance 26.2, 91.2
82.1, 90.1, 90.34, C93.4, D93.5 take over of works 35.3, 43.4, 60.1(15)
co-operation 10.1, 16.3 and termination
termination 90.1, 90.3, 90.4, 91.2
compensation events tests and inspections C40.7, D40.7
60.1(1)(4)(6)(7)(8)(9)(15)(17), 61.16, Works Information 14.3, 18.1, 44.2, 60.1(1)
A63.10, B63.10, C63.15, D63.15, E63.15, property, loss or damage 84.1
F20.5 proposal(s)
Completion 30.2 acceleration 36.1
Contractor’s advice C20.
C20.3,
3, D20.3
D20.3,, E20.3, F20.3 to add to Working Areas 15.1
Contractor’s design
Contractor’s default 11.2(5),
91.2, 91.3
21.2 Defect(s)
form acceptance/non-correction
of communi
communication
cation 13.1 44.1
Contractor’s employees 24.1, 24.2 risk reduction meeting 16.3, 16.4
correction of mistak
correction mistakes
es in Bill of Quantit
Quantities
ies B60.6, proposed
propose d instru
instruction
ction or changed decision
decision 61.2, 62.3
D60.6 Provide the Works 20
date of Completion 30.2 and addition to Working Areas 15.1
decisions 30.2, 50.1, 60.1(8), 61.1 2, 61.46, Contractor’s responsibilities 11.2(7), 14.1, 20.1,
63.5, 64.1, C11.2(25), D11.2(25), 23.1, 26.3, C20.34, C26.4, D20.34,
E11.2(25), F11.2(26) D26.4, E20.34, E26.4, F20.35, F26.4
Defect(s) acceptance/non-correction 44.1, 44.2 and Equipment 11.2(7), 23.1
delegation 14.2 meaning of term 11.2(13)
Disallowed Cost decision C11.2(25), D11.2(25), Plant and Materi
Materials
als not used C11.2(25),
C11.2(25),
E11.2(25), F11.2(26) D11.2(25), E11.2(25)
duties required 10.1, 14 and programme 31.2
early warning 16.1, 16.2, 16.4, 61.5, 63.5 resources not used C11.2(25), D11.2(25),
Equipmen E11.2(25)
forecasts of Defined Cost C20.4, D20.4, E20.4, and Works Information 11.2(19), 20.1, C11.2(25),
F20.4 D11.2(25), E11.2(25)
illegal/impossible requirements 18.1 publicly available information 60.2

®
Index
quantities B11.2(28)(31), B60.47, D11.2(31), retention free amount X16.1

D60.47 retention percentage X16.1
see also bill of quantities; Bill of Quantities reviews, tribunal W1.4(16), W2.4(15)
quotations revised Activity Schedule A54.2, A54.3, C54.2, C54.3
for acceleration 36.12, 60.1(9), A36.3, B36.3, revised programme 32.12, 36.1, 64.2, A36.3,
C36.3, D36.3, E36.4, F36.4 B36.3, C36.3, D36.3, E36.4, F36.4
acceptance of 36.1, 44.2, 60.1(9), 62.3, 65.1, revised quotation 62.3, 62.4, 64.1
A36.3, B36.3, C36.3, D36.3 revolution,
revol ution, risks due to 80.1
for compensation events 61.4, 61.5, 62 , 64.1, (Contracts) Act Y(UK)3
Rights of Third Parties (Contracts)
64.34, 65.1, A11.2(22), C11.2(25), riot risks 80.1
D11.2(25), E11.2(25), F11.2(26), X2.1 risk allowances 63.6
if Defect(s) accepted 44.2, 60.1(9) risk reduction meeting
for proposed instruction/changed-decision 61.2 purpose 16.3
revised 62.3, 62.4, 64.1 records 16.4
who attends 16.2
radioactive contamination 80.1 Risk Register
rates definition 11.2(14)
in assessing compensation events A63.14, B63.13, early warning 16.1, 16.34
D63.13 Project Manager revision 16.4
in Bill of Quantities B11.2(28)(31), B60.4, records revision 16.4
D11.2(25,31), D60.4, D63.13 risks
in Contract Data X1.3, X6.1, X7.1 Contractor’s 63.6, 81 , 83.2, 84.2, 85.4
rebates, deduction from prices 52.1 Employer’s 60.1(14), 80 , 81.1, 83.2, 85.4
rebellion, risks due to 80.1
receipt of communications 13.1 safety see health and safety
receiver over assets 91.1 samples 40.2, 42.1, 60.1(16)
records savings, Contractor’s share C53.2
Contractor’s C11.2(25), C52.2 3, D11.2(25), Schedule of Cost Components C11.2(23), D11.2(23),
D52.23, E11.2(25), E52.23, F11.2(26), E11.2(23)
F52.23 Shorter Schedule A11.2(22), B11.2(22), C63.15,
form of communi
communication
cation 13.1 D63.15, E63.15
risk reduction meeting 16.4 Schedule of Partners X12.1(1)
Risk Register revision 16.4 searching for Defects 42.1, 60.1(10)
re-covering (during searching) 42.1 section of the works X5.1
re-erecting (during searching) 42.1 sectional Completion X5
referral, adjudication W1.3(13), W2.3(13) services 11.2(13)
removing see also facilities and services
Contractor’s employee 24.2 share ranges C53.1, D53.5
Equipment 72 , 92.2, 93.2 Shorter Schedule of Cost Components A11.2(22),
Plant and Materi
Materials
als 92.2 B11.2(22), C63.15, D63.15, E63.15
resources C11.2(25), D11.2(25), E11.2(25) Site
repairs 82 access
acces s to 31.2, 60.1(
60.1(2)
2)
replacement(s) access and use of 33.1
of Adjudicator
Contractor W1.2(4),24.1
’s employee W2.2(4) definition 11.2(15)
historical-interest/valuable objects found 60.1(7),
Equipment 80.1, 84.1 73.1
Plant and Materi
Materials
als 82.1, 84.1 information describing 11.2(16)
Project Manager/Supervisor 14.4 location X2.1
reply physical conditions 60.1(12), 60.2, 60.3
form of communi
communication
cation 13.1 removal of Equipment, Plant and Materials 72.1, 92.2
time allowed 13.35, 31.3, 32.2, 36.2, 60.1(6), and risks 80.1
62.56 starting of work 30.1
resignation of Adjudicator W1.2(3), W2.2(3) termination 92.2
resources
resou rces not used to Provid
Provide
e the Works C11.
C11.2(25),
2(25), visual inspection 60.2
D11.2(25), E11.2(25) Site Information 11.2(16), 60.2
responsibilities and Activity Schedule A54.1, A54.2, C54.1
Contractor 14.1, 20 7, C20.3, C20.4, C26.4, ambiguities/inconsistencies 60.3
D20.34, D26.4, E20.34, E26.4, F20.24, and Bill of Quantities B55.1, D55.1
F26.4 starting date 31.2, 32.2, 50.1, 81.1, 84.2, 87.1,
Contractor’s 11.2(7), 14.1, 20 , 83.2 C20.4, D20.4, E20.4, F20.4
Employer’s 83.2, 87.2 dispute resolution W1.2(1), W2.2(1)
retention 50.3, 93.1, X16 insurance 85.1
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start(ing) work 30 taxes 52.1

instruction(
instruction(s)
s) given not to 34.1, 60.1(4),
60.1(4), 91.6 payment 50.2
stopping
stoppi ng work 34.1, 60.1(4
60.1(4),
), 91.6 termination 90
strikes, risks due to 80.1 amount due on 90.2, 90.4, 93.1, 93.2, A93.3
subcontract certification of 90.1, 90.3, 90.5, C93.4, D93.5
adjudication W1.3(4), W2.3(3) and insurance cover 84.2
contract
contra ct data C26.4
C26.4,, D26.4
D26.4,, E26.4, F26.4 loss/damage risks 80.1
subcontracted fee percentage 11.2(8) payment on 93.1, 93.2, A93.3, C93.4, D93.5
subcontracting 26 , C20.3, C26.4, D20.3, D26.4, procedures 90.2, 90.3, 92
E20.3, E26.4, F20.2, F20.3, F26.4 Project
Proje ct Bank Account Y1.14
assignment
assign ment of benefits 92.2 reasons for 90.2, 91
conditions 26.3 Termination Table 90.2, 92.2, 93.2
Contractor’s management responsibility F20.2 tests/testing 40
Defined Cost A11.2(22), C11.2(23), D11.2(23), before delivery 41
E11.2(23), F11.2(26) compensation events resulting 60.1(10)(11)(16)
Subcontractor Contractor’s cost C40.7, D40.7
acceptance by Project Manager 26.2, 91.2 searching/notifying Defects 42.12
appointment
appoint ment 26.2, 26.3, 91.2 third party rights, contr
contracts
acts Act Y3.1
compensation event assessments C52.2, time, see also Completio
Completion;
n; Key Date; start(ing)
start(ing) work
D11.2(25), D52.2, E11.2(25), E52.2, time allowed
F11.2(26), F52.2 certification of Completion 30.2
definition 11.2(17) certificatio
certificationn of payment 50.5, 51.1, 90.4
payments made C11.2(23)(25), D11.2(23)(25), certificatio
certificationn of take over 35.3
E11.2(23)(25), F11.2(24)(26) compensation events 61.1, 61.3, 61.4, 64.3 4
submission(s) Defect(s) correction 43.2
addition to Working Areas 15.1 extension(s) agreed 13.5, 62.5 6
communications 13.1, 13.4 payment of amount due 51.2, 91.4
Contractor’s design 21.2 programme submission/acceptance 31.1, 31.3, 32.2
Equipmen Project Manager not replying 64.4
forecasts
forec asts of total Defined Cost C20.4
C20.4,, D20.4
D20.4,, reply to communic
communications
ations 13.3, 13.5, 31.3, 32.2,
E20.4, F20.4 60.1(6)
insurance policies/certificates 85.1, 86.1, 87.1, start/restart of work 91.6
87.3 time clauses 30
non-acceptanc
non-ac ceptance e of 13.8, 15.1, 21.2, 23.1, 26.2, time risk allowa
allowances
nces 31.2, 63.6
26.3 timings, adjudication W1.3(8)(10-11),
programme (first/revised) 31.2, 32.2, 50.3, 64.1, W2.3(2)(8)(1112)
64.2, A31.4, C31.4 title 70
quotations
quotati ons 36.1, 36.2, 44.2, 61.4, 62.1, 62.36, Equipment, Plant and Materials 92.1, 92.2
64.1, X2.1 materials from excavation and demolition 73.2
Subcontractor/subcontract conditions/contract object of value or histor
historical
ical interest 73.1
data 26.2, 26.3, C26.4
C26.4,, D26.4
D26.4,, E26.4, F26.4 Plant and Materials 70
subrogation rights 85.2 total of the Defined Cost, payment on termination
Supervisor D93.5
access 27.2
Adjudicator ’s reviews/revisions W1.3(5), W2.3(4) Total of the Prices
Contractor ’s share D53.58
certificates issued by 13.6, 43.3, 50.1 identified
identi fied and defined terms D11.2(
D11.2(33)
33)
and compensati
compensationon events 60.1(6)(8)(10)(11),
60.1(6)(8)(10)(11), 61.1 total of the Prices
Defects
Defec ts notified by 11.2(
11.2(6),
6), 42.2, 43.1, 43.3 Activity Schedule A54.3, C54.3
delegation 14.2 adjustment for inflation X1.5
duties required 10.1, 14 compensation events B60.4, D60.4
instructions
instructions given by 27.3, 61.1 Contractor’s share C53.1, C53.3
marking of Equipment, Plant and Materials 70.1, early warning of possible increase 16.1
71.1 identified
identified and defined terms 11.2(27)
replacement of 14.4 payment on termin
termination
ation 93.2, C93.4, C93.4
reply to communication 13.3, 14.1, 60.1(6) tribunal
searching (for Defects) 42.1, 60.1(10) Adjudicator W1.3(2)(10), W2.3(11)
tests and inspections 40.3, 40.5, 41.1, 60.1(11) arbitration W1.4(5), W2.4(4)
suppliers 11.2(10)(17) costs D11.2(25)
Project Bank Account Y1.1(2), Y1.6 decisions 51.3
proceedings C11.2(25), D11.2(25), E11.2(25)
take over of works 35 , 43.4, 60.1(15), 80.1, X6.1, reviews W1.4(16), W2.4(15)
X7.1, X16.1, X16.2 trust and co-operation 10.1, 26.3, X12.3(1)
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Index
Trust Deed Contractor’s management responsibility for design,

Projectt Bank Account Y1.1(5
Projec Y1.1(5),
), Y1.13 construction and installation F20.2
and Defects 11.2(5)
uncorrected Defects 45 , 60.1(9) design C20.3, D20.3, E20.3, F20.3
uncovering
uncover ing work (durin
(during
g searc
search)
h) 42.1 early warning of possible performance impairment
undecided disputes, Adjudicator W1.2(4), W2.2(4) 16.1
United Kingdom Housing Grants
Grants,, Constr
Construction
uction and Equipment left in 72.1
Regeneration Act (1996) as amended by the information specifying/describing 11.2(19), 25.1
Local Democracy, Economic Development and loss of or damage to 80.1, 82.1, 84.1
Construction Act 2009 W1 , W2 part provided by Subcontractor 11.2(17)
use of works by Employer 11.2(2), 35.3 Plant and Materials included 11.2(12)(17)
usurped power, risks due to 80.1 section X5.1
utilisation of resources C11.2(25), D11.2(25), taking over 35 , 43.4, 60.1(15), 80.1, X6.1, X7.1,
E11.2(25) X16.1, X16.2
Works Information
valuable object
valuable objects
s found within Site 60.1(
60.1(7),
7), 73.1 acceptance/procurement procedure C11.2(25),
visual inspection
inspection of Site 60.2 D11.2(25), E11.2(25), F11.2(26)
accounts
accoun ts and record
recordss C52.2
C52.2,, D52.2
D52.2,, E52.2, F52.2
waiver by insurers 85.2 and Activity Schedule A54.1, C54.1
war 80.1 advanced
advance d payment bond X14.2
wastage of Plant and Materials C11.2(25), assessing compensation events A63.10, B63.10
D11.2(25), E11.2(25) and Bill of Quantities B55.1, D55.1
watching tests 40.3 change(s)
change( s) 14.3, 18.1, 44.1 2, 60.1(1), 63.8 9
wear to works, Employer’s risk 80.1 and compensation events 60.1(1)(16), 63.89
weather conditions 60.1(12) Completion Date 11.2(2)
weather data/weather measurement 60.1(13) conditions stated in 25.1, 60.1(5)
whole of the works X5.1 Contractor’s accounts and recor
records
ds C52.
C52.2,2, D52.2,
Completion 32.2, 50.1, 60.1(13), 93.1 2, C20.4, E52.2, F52.2
C53.3, D20.4, D53.7, E20.4, F20.4, X1.2, Contractor’s design 21.12, 22.1, 60.1(1), X15.1
X16.1 Contractor’s parent company guarantee X4.1
Defined Cost C20.4, D20.4, E20.4, F20.4 and Defects 44.1, 44.2
winding-up order 91.1 definition 11.2(19)
witnesses, tribunal proceedings W1.4(6), W2.4(5) Equipment 11.2(7)
Working Areas (working areas) 11.2(18) health and safety 27.4
addition 15 instructions that change 14.3, 18.1, 44.2, 60.1(1),
Equipment,
Equipmen t, Plant and Materi
Materials
als outside 71.1 63.89
Equipment,
Materials
als removed from 92.2 marking of Equipment, Plant and Materials 71.1
Equipment,
Materials
als within 41.1, 93.1 part of works not in accordance with 11.2(5)
Plant and Materi
Materials
als outside 70.1, 70.2, 71.1 performance bond X13.1
Plant and Materials within 41.1, 70.2, 93.1 and programme 31.2
resources removed from C11.2(25), D11.2(25), and Providing the Works 11.2(19),
11.2(19), 20.1,
E11.2(25) C11.2(25), D11.2(25), E11.2(25)
sharing
sharing with Others 25.1 subcontract work F20.2
working with Employer/Others see co-operation
works take
testsover
and of works 35.2
inspections
inspec tions 40.12, 41.1, 42.1,
Completion of whole 11.2(13), 32.2, 50.1, 60.1(16)
60.1(13), 92.1, 93.2, C20.4, C53.3, D20.4, title to materials 73.2
D53.7, E20.4, F20.4, X1.2, X16.1 uncorrected Defects 45.12
Contractor’s design 21.1, 22.1, X15.1

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Engineering and Construction Contract

Construction Clients’ Board endorsement of NEC3

NEC is a division of Thomas Telford Ltd, which is a wholly owned subsidiary of

The NEC is a family of standard contracts, each of which has these

ISBN (complete box set) 978 0 7277 5867 5

Consultative edition 1991

British Library Cataloguing in Publication Data for this publication is available

Typeset by Academic + Technical, Bristol

Shorter Schedule of Cost 63

of the Institution of Civil Engineers, 2010/11.

The NEC con contra

Dr Martin Barnes CBE

Originator of the NEC contracts

AMENDMENTS JUNE 2006

Page Clause Line

AMENDMENTS APRIL 2013

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37 63.13 last paragraph delete: ‘instead of Deﬁned Cost’

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The following secondary Options should then be considered. It is not necessary

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Identiﬁed and deﬁned 11 s

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Adding to the Working 15

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2 The Contractor’s main responsibilities

Working with the Employer 25

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2 5 .3 If the Project Manag

p . the Project Manager has agreed that no submission is required.

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Starting, Completion and 30

3 0 .2 The Project Mana

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Access to and use of 33

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4 Testing and Defects

Tests and inspections 40

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51.2 Each certiﬁed

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(9) The Project Manager withholds an acceptance (other than acceptance of

. are not weather conditions and o d

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o expected to have or to obtain.

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6 1 .4 If the Project Manager decides that an event notiﬁed by the Contractor

within two weeks of this notiﬁcation is treated as acceptance by the Project

62.2 Quotations for

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