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Back-to-Back NEC Subcontracts

An NEC4 subcontract isn't a mirror of the main contract, and that's deliberate. The ECS uses the same clause numbers as the ECC but different periods, so that the Contractor has time to pass notices up and replies down. Getting them to work together means understanding those differences.

This page uses the unamended NEC4 ECC and ECS. Amendments often change these figures, so check yours. For the form itself, read the guide to the ECS, and for the other forms, see NEC contract types.

How the periods align

StepClauseECCECSEffect on the Contractor
Notify a compensation event61.38 weeks7 weeksA one-week window to notify upwards
Reply to the notification61.41 week2 weeksTime to get the Project Manager's view first
Submit a quotation62.33 weeks2 weeksOne week to review and include it
Reply to a quotation62.32 weeks4 weeksTime to reply after the Project Manager has
Revised quotation62.43 weeks2 weeksOne week again
Further wait before treated acceptance of a quotation62.62 weeks3 weeksAn extra week below
Reply to a programme31.32 weeks3 weeksTime to check it against the main programme
Further wait before treated acceptance of a programme31.31 week2 weeksAn extra week below
Payment after the assessment date51.23 weeks4 weeksMoney comes in before it goes out

A worked timeline

Suppose a Project Manager instructs a change affecting a fictional steelwork subcontract. The Project Manager instructs the Contractor to quote, and the Contractor instructs the Subcontractor at once.

End of weekEventContract
0Instructions to quote issued at both levelsBoth
2Subcontractor's quotation dueECS 62.3
3Contractor's quotation due, including the subcontract's cost and its ownECC 62.3
5Project Manager's reply dueECC 62.3
6Contractor's reply to the Subcontractor dueECS 62.3

That leaves one week to digest the subcontract quotation and one week to pass down the decision. It's workable only if the Contractor stays alert: a slip in the first week uses up the whole margin.

Where "back-to-back" breaks down

  • The events differ. A subcontract event doesn't automatically match a main contract one. Something that delays the Subcontractor might be the Contractor's own co-ordination failure, which has no route up to the Client.
  • The test may differ. Each contract's physical conditions or weather event depends on what its own data and knowledge say. Compare the weather data entries in each document. A subcontract could use a different location or measure.
  • The main Option may differ. A package on Option A under a Contractor on Option C gives different money flows. A quotation at subcontract level is the Subcontractor's price. Upstream, it feeds a target.
  • Dates may not line up. Key Dates and the Subcontract Completion Date should leave space for the Contractor's later work. A week's delay below won't necessarily mean a week's delay above.
  • Amendments can undo the alignment. A Z clause that shortens the main contract's time for notifying events could leave the Contractor with less time than its subcontract gives. Whenever you change a period on one level, check the other.

Early warnings and programme

Warnings need passing on too, since a subcontract warning doesn't reach the Project Manager by itself. That chain is covered in the early warning guide for subcontractors. For programmes, review a subcontract programme against the Accepted Programme before you accept it, because accepting one that doesn't fit could hand the Subcontractor an argument later.

Practical steps for a Contractor

  1. Set up a single table for each subcontract, showing both sets of periods. Don't rely on memory.
  2. Link every subcontract event to the main contract event if one exists. A register that records both references makes gaps obvious. See the compensation event register guide.
  3. When the Project Manager instructs a change, instruct affected Subcontractors the same day.
  4. Don't accept a subcontract quotation before you know the main contract outcome unless you are ready to carry the difference.
  5. Check that your subcontract data periods haven't been changed in a way that removes the Contractor's margin.
  6. Pass down the main contract requirements that affect the package, and do it in the Subcontract Scope, not in general wording.

Other subcontract forms

The same principle applies to the PSS, whose notification and quotation periods match the ECS's. The NEC4 ECSS differs: three weeks to notify an event (61.3) and one week to quote (61.2). For the TSS, read the figures from your own copy, since each form has its own.

See how this works in practice

Click through Contract Status with sample contracts: raise the notice, reply to it, and watch both sides of one record.

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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.