{
  "query": "NEC4 contract quick approval thresholds and best practices for low variance quotations",
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    {
      "url": "https://support.builtintelligence.com/hc/en-gb/articles/360017196197-Quick-NEC4-Reference-Clause-Guide",
      "title": "Quick NEC4 Reference Clause Guide – BuiltIntelligence Help Centre",
      "content": "| 21.2 | to remove a person |\n| 32.2 | to submit a revised programme |\n| 34.1 | to stop or not start work |\n| 34.1 | to start or restart work |\n| 35.1 | to submit a quotation for acceleration |\n| 40.3 | to correct a failure to comply with the quality plan |\n| 62.1 | to submit alternative quotations for a compensation event |\n| 92.2 | to assign the benefit of any subcontractor to the Client |\n| X10.4 | to submit a revised Information Execution Plan |\n| X12.1(6) | providing Partnering Information |\n|  | Other Instruction |\n| Programme |\n| Service Manager Reply - Not Accepted |\n| The Consultant's plans which it shows are not practicable |\n| It does not show the information which the contract requires |\n| It does not represent the Consultant's plans realistically | [...] |  | Termination Certificate |\n| Submissions for acceptance |\n| Client Submissions |\n| 43.1 | of a proposal to accept a defect |\n| Contractor Submissions |\n| 20.1 | of particulars of a design |\n| 30.2 | of a forecast date of Completion |\n| 43.1 | of a proposal to accept a defect |\n| Quotations for acceptance of a Defect |\n| Contractor Quotation for Acceptance of a Defect Register |\n| 43.1 | of a quotation for reduced Prices or an earlier Completion Date or both |\n| Other Assessments |\n| Client Assessments |\n| 44.1 | of the cost to Client of having a Defect corrected by others (to be paid by the Contractor) |\n| 51.2 | of the interest to be paid for a late or corrected payment (to be paid by the Client) | [...] | 62.1 | to submit alternative quotations for a compensation event |\n| 92.2 | to remove Equipment, Plant and Materials and assign the benefit of the subcontract to the Client |\n| X10.4(3) | to submit a revised Information Execution Plan |\n| X12.1(6) | providing Partnering Information |\n| X21.5 | changing the Scope and the Prices following an acceptance of a quotation to reduce cost |\n|  | Other Instruction |\n| Notifications |\n| Service Manager Notifications |\n| 13.2 | of a change of address for communications |\n| 13.5 | of an agreement to extend the period for reply for a communication (excluding compensation events periods) |\n| 14.2 | of the cancellation of a delegation |\n| 16.2 | that the Client is considering a proposal |\n| 17.1 | of an ambiguity or inconsistency |",
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    {
      "url": "https://gmhplanning.co.uk/nec-downloads/nec4-ecc-high-level-user-guide-ceca-bulletin-51/",
      "title": "NEC4 ECC High Level User Guide- CECA Bulletin 52",
      "content": "### Accepting Defects\n\n45.1      Can propose for defect to not be corrected and Scope changed accordingly.\n\n45.2      Contractor to submit resultant quotation saving for accept/not accept.\n\n### Uncorrected Defects\n\n46.1/2 Project Manager can assess costs of uncorrected defects and charge Contractor.\n\n## NEC4 ECC  Section 5 – Payment\n\n### Assessing the Amount Due\n\n50.1      Project Manager to assess the amount due at each assessment date.\n\n50.2      Definition of the amount due for each application.\n\n50.4      If Contractor does not submit application on time will be assessed as zero that period.\n\n50.5      25% PWDD can be withheld if no 1st programme issued showing information contract requires.\n\n### Payment\n\n51.1      Project Manager to certify payment within 1 weeks of assessment date. [...] 61.3      Contractor can notify a CE and can be time barred after a period if late.\n\n61.4      Project Manager to accept or not accept if Contractor has notified a CE.\n\n61.4      Deemed acceptance if the Project Manager does not respond to reminder.\n\n61.5      Project Manager can state that an early warning could have been given.\n\n61.6      Project Manager can state assumptions for Contractor to base the quote upon.\n\n61.7      No compensation events can be issued after Completion.\n\n### Quotations\n\n62.1      Project Manager can request alternative quotations for dealing with a CE.\n\n62.2      Contractor to provide a quote and alterations to programme (if relevant).\n\n62.3      Contractor to provide quote within 3 weeks, PM response within 2 weeks. [...] ### X18 Limitation of Liability\n\nX18.1-4 Limits of liability as stated in Contract Data part 1.\n\nX18.5    Excluded matters that remain unlimited liability.\n\nX18.6    Contractor only liable for matters notified before end of liability period.\n\n### X20 Key Performance indicators and Reporting Requirements\n\nX20.1-5 As per CD1.\n\n### X21 Whole Life Cost\n\nX21.1    Contractor can propose Scope change to reduce life cost of an asset.\n\nX21.2    Contractor to submit quotation if Project Manager prepared to consider change.\n\nX21.3    Project Manager responds to quotation within period for reply.\n\nX21.5    Project Manager changes Scope/Prices/Completion Date accordingly.\n\n### X22 Early Contractor Involvement\n\nX22.1    Defined terms.\n\nX22.2    Requirements for forecasts of Defined Costs for stage 1",
      "score": 0.41591915,
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    },
    {
      "url": "https://sypro.co.uk/blogs/understanding-secondary-options-in-nec4-ecc/",
      "title": "Understanding Secondary Options in NEC4 ECC",
      "content": "X2 – Changes in the Law\n X11 – Termination by the Client\n X15 – Contractor’s Design\n X18 – Limitation of Liability\n\n## Best practice tips\n\nAvoid overlapping clauses like X4 and X13, or X12 and X20, which can create confusion. Clearly list all chosen secondary Options upfront to set expectations.\n\nUse ‘what-if’ scenarios to guide your clause selection, thinking about likely risks and key trade-offs like cost vs. time. For extra clarity, follow the Volume 2 guidance on filling out contract data correctly. It’s one of the easiest ways to avoid conflict later on.\n\n## How Sypro can help",
      "score": 0.3939683,
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    },
    {
      "url": "https://coniston-associates.co.uk/take-notice-a-brief-guide-to-nec-contract-notices/",
      "title": "Take Notice! - A Brief Guide to NEC Contract Notices",
      "content": "Clause 62.6: If the Project Manager does not reply to a quotation within the time allowed, the Contractor may notify the Project Manager of his failure. If the Project Manager continues to fail to reply for 2 weeks after that notification, then the Contractor’s original quotation will be treated as accepted.\n\nClause 64.3: The Project Manager notifies the Contractor of his assessment of a compensation event.\n\nClause 65.2: Notification that a Contractor’s quotation for a proposed instruction is not accepted.\n\nClause X22.5: Notice to proceed to Stage Two.\n\nClause Y2.2: The Project Manager’s certificate is the notice of payment.\n\n### Notices from Supervisor\n\nThe NEC4 ECC contract includes the following clauses in respect of contractual notices from the Supervisor: [...] Clause 62.3: Within two weeks of receiving a Contractor’s quotation, the Project Manager must respond. If the Project Manager accepts the quotation, he must issue a notification to confirm this. Alternatively, the Project Manager can notify he will be making his own assessment, or he could instruct the Contractor to submit a revised quotation.\n\nClause 62.5: The Project Manager has the power to grant more time for the submission of quotations. However, an extension can only be granted before the original time limit for submitting the quotation has expired. [...] The Project Manager is motivated to give an early warning, to maximise the opportunity of involving the Contractor and finding the best solution to the problem and therefore keep the Client happy. It might be said that the Contractor’s motivation is similar – but he also has the potent incentive of protecting himself from the Project Manager imposing the sanction at NEC4 clause 63.7 (clause 63.5 in the NEC3) of the compensation event process, which provides:\n\n“If the Project Manager has stated in the instruction to submit quotations that the Contractor did not give an early warning of the event which an experienced contractor could have given, the compensation event is assessed as if the Contractor had given early warning”.",
      "score": 0.37566122,
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    },
    {
      "url": "https://www.devb.gov.hk/filemanager/en/content_1002/NEC4_ECC_PN_(7-2023)(clean).pdf",
      "title": "[PDF] Practice Notes for New Engineering Contract (NEC)",
      "content": "Group on NEC Projects and / or the Steering Committee on NEC Projects where appropriate. Other ‘X’ Options included in NEC4 A4.2.4.62 There are other ‘X’ Options available for selection in NEC4 contracts. These Options includes:  X8 – Undertakings to the Client or Others  X9 – Transfer of rights  X10 – Information Modelling  X21 – Whole life cost  X22 – Early Contractor Involvement (for options C and E) A4.2.4.63 For secondary Options X8, X9, X10 and X22, if the Project Offices wish to conduct trial for inclusion of these Options, they should submit their proposal with justifications to seek legal advice from LAD(W), DEVB and approval from DEVB who should consult the Inter-departmental Working Group on NEC Projects and / or the Steering Committee on NEC Projects where appropriate. [...] Subcontract (NEC4 only) TSS For the appointment of a subcontractor for a period of time to manage and provide a service where the contractor has been appointed under the TSC Term Service Short Contract TSSC As an alternative to TSC and is for use with contracts which do not require sophisticated management techniques, comprise straightforward work and impose only low risks on both the employer and the contractor Practice Notes for NEC – ECC for Public Works Projects in Hong Kong Development Bureau 9 NEC Title Abbr. When Should be Used Consultancy Services Professional Service Contract PSC For the appointment of a consultant to provide professional services Professional Service Subcontract (NEC4 only) PSS For the appointment of a subconsultant to provide professional services where the [...] for approval. If the Project Offices intend to conduct a trial of Option E or F for their projects, they should submit the proposal with justifications for seeking approval from DEVB who should consult the Inter-departmental Working Group on NEC Projects and / or the Steering Committee on NEC Projects where appropriate. 3 WDs are allowed to set other thresholds for adoption of Option A to suit the specific nature of works or to meet a policy intention as steered by DEVB. In any cases, the Project Offices should document their decision making process as set out in A4.2.3.2. Practice Notes for NEC – ECC for Public Works Projects in Hong Kong Development Bureau 26 A4.2.4 Secondary Options A4.2.4.1 The secondary Options can generally be used with all of the main Options although there are",
      "score": 0.35421017,
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  ],
  "formatted": "Source: Quick NEC4 Reference Clause Guide – BuiltIntelligence Help Centre\nURL: https://support.builtintelligence.com/hc/en-gb/articles/360017196197-Quick-NEC4-Reference-Clause-Guide\n| 21.2 | to remove a person | | 32.2 | to submit a revised programme | | 34.1 | to stop or not start work | | 34.1 | to start or restart work | | 35.1 | to submit a quotation for acceleration | | 40.3 | to correct a failure to comply with the quality plan | | 62.1 | to submit alternative quotations for a compensation event | | 92.2 | to assign the benefit of any subcontractor to the Client | | X10.4 | to submit a revised Information Execution Plan | | X12.1(6) | providing Partnering Information | | | Other Instruction | | Programme | | Service Manager Reply - Not Accepted | | The Consultant's plans which it shows are not practicable | | It does not show the information which the contract requires | | It does not represent the Consultant's plans realistically | [...] | | Termination Certificate | | Submissions for acceptance | | Client Submissions | | 43.1 | of a proposal to accept a defect | | Contractor Submissions | | 20.1 | of particulars of a design | | 30.2 | of a forecast date of Completion | | 43.1 | of a proposal to accept a defect | | Quotations for acceptance of a Defect | | Contractor Quotation for Acceptance of a Defect Register | | 43.1 | of a quotation for reduced Prices or an earlier Completion Date or both | | Other Assessments | | Client Assessments | | 44.1 | of the cost to Client of having a Defect corrected by others (to be paid by the Contractor) | | 51.2 | of the interest to be paid for a late or corrected payment (to be paid by the Client) | [...] | 62.1 | to submit alternative quotations for a compensation event | | 92.2 | to remove Equipment, Plant and Materials and assign the benefit of the subcontract to the Client | | X10.4(3) | to submit a revised Information Execution Plan | | X12.1(6) | providing Partnering Information | | X21.5 | changing\n\n---\n\nSource: NEC4 ECC High Level User Guide- CECA Bulletin 52\nURL: https://gmhplanning.co.uk/nec-downloads/nec4-ecc-high-level-user-guide-ceca-bulletin-51/\n### Accepting Defects 45.1 Can propose for defect to not be corrected and Scope changed accordingly. 45.2 Contractor to submit resultant quotation saving for accept/not accept. ### Uncorrected Defects 46.1/2 Project Manager can assess costs of uncorrected defects and charge Contractor. ## NEC4 ECC Section 5 – Payment ### Assessing the Amount Due 50.1 Project Manager to assess the amount due at each assessment date. 50.2 Definition of the amount due for each application. 50.4 If Contractor does not submit application on time will be assessed as zero that period. 50.5 25% PWDD can be withheld if no 1st programme issued showing information contract requires. ### Payment 51.1 Project Manager to certify payment within 1 weeks of assessment date. [...] 61.3 Contractor can notify a CE and can be time barred after a period if late. 61.4 Project Manager to accept or not accept if Contractor has notified a CE. 61.4 Deemed acceptance if the Project Manager does not respond to reminder. 61.5 Project Manager can state that an early warning could have been given. 61.6 Project Manager can state assumptions for Contractor to base the quote upon. 61.7 No compensation events can be issued after Completion. ### Quotations 62.1 Project Manager can request alternative quotations for dealing with a CE. 62.2 Contractor to provide a quote and alterations to programme (if relevant). 62.3 Contractor to provide quote within 3 weeks, PM response within 2 weeks. [...] ### X18 Limitation of Liability X18.1-4 Limits of liability as stated in Contract Data part 1. X18.5 Excluded matters that remain unlimited liability. X18.6 Contractor only liable for matters notified before end of liability period. ### X20 Key Performance indicators and Reporting Requirements X20.1-5 As per CD1. ### X21 Whole Life Co\n\n---\n\nSource: Understanding Secondary Options in NEC4 ECC\nURL: https://sypro.co.uk/blogs/understanding-secondary-options-in-nec4-ecc/\nX2 – Changes in the Law X11 – Termination by the Client X15 – Contractor’s Design X18 – Limitation of Liability ## Best practice tips Avoid overlapping clauses like X4 and X13, or X12 and X20, which can create confusion. Clearly list all chosen secondary Options upfront to set expectations. Use ‘what-if’ scenarios to guide your clause selection, thinking about likely risks and key trade-offs like cost vs. time. For extra clarity, follow the Volume 2 guidance on filling out contract data correctly. It’s one of the easiest ways to avoid conflict later on. ## How Sypro can help\n\n---\n\nSource: Take Notice! - A Brief Guide to NEC Contract Notices\nURL: https://coniston-associates.co.uk/take-notice-a-brief-guide-to-nec-contract-notices/\nClause 62.6: If the Project Manager does not reply to a quotation within the time allowed, the Contractor may notify the Project Manager of his failure. If the Project Manager continues to fail to reply for 2 weeks after that notification, then the Contractor’s original quotation will be treated as accepted. Clause 64.3: The Project Manager notifies the Contractor of his assessment of a compensation event. Clause 65.2: Notification that a Contractor’s quotation for a proposed instruction is not accepted. Clause X22.5: Notice to proceed to Stage Two. Clause Y2.2: The Project Manager’s certificate is the notice of payment. ### Notices from Supervisor The NEC4 ECC contract includes the following clauses in respect of contractual notices from the Supervisor: [...] Clause 62.3: Within two weeks of receiving a Contractor’s quotation, the Project Manager must respond. If the Project Manager accepts the quotation, he must issue a notification to confirm this. Alternatively, the Project Manager can notify he will be making his own assessment, or he could instruct the Contractor to submit a revised quotation. Clause 62.5: The Project Manager has the power to grant more time for the submission of quotations. However, an extension can only be granted before the original time limit for submitting the quotation has expired. [...] The Project Manager is motivated to give an early warning, to maximise the opportunity of involving the Contractor and finding the best solution to the problem and therefore keep the Client happy. It might be said that the Contractor’s motivation is similar – but he also has the potent incentive of protecting himself from the Project Manager imposing the sanction at NEC4 clause 63.7 (clause 63.5 in the NEC3) of the compensation event process, which provides:\n\n---\n\nSource: [PDF] Practice Notes for New Engineering Contract (NEC)\nURL: https://www.devb.gov.hk/filemanager/en/content_1002/NEC4_ECC_PN_(7-2023)(clean).pdf\nGroup on NEC Projects and / or the Steering Committee on NEC Projects where appropriate. Other ‘X’ Options included in NEC4 A4.2.4.62 There are other ‘X’ Options available for selection in NEC4 contracts. These Options includes:  X8 – Undertakings to the Client or Others  X9 – Transfer of rights  X10 – Information Modelling  X21 – Whole life cost  X22 – Early Contractor Involvement (for options C and E) A4.2.4.63 For secondary Options X8, X9, X10 and X22, if the Project Offices wish to conduct trial for inclusion of these Options, they should submit their proposal with justifications to seek legal advice from LAD(W), DEVB and approval from DEVB who should consult the Inter-departmental Working Group on NEC Projects and / or the Steering Committee on NEC Projects where appropriate. [...] Subcontract (NEC4 only) TSS For the appointment of a subcontractor for a period of time to manage and provide a service where the contractor has been appointed under the TSC Term Service Short Contract TSSC As an alternative to TSC and is for use with contracts which do not require sophisticated management techniques, comprise straightforward work and impose only low risks on both the employer and the contractor Practice Notes for NEC – ECC for Public Works Projects in Hong Kong Development Bureau 9 NEC Title Abbr. When Should be Used Consultancy Services Professional Service Contract PSC For the appointment of a consultant to provide professional services Professional Service Subcontract (NEC4 only) PSS For the appointment of a subconsultant to provide professional services where the [...] for approval. If the Project Offices intend to conduct a trial of Option E or F for their projects, they should submit the proposal with justifications for seeking approval from DEVB who should c"
}