Plant and Materials

The NEC Plant and Materials definition is one line: items intended to become part of the works. That covers everything from a bag of cement to a transformer. "Plant" here isn't excavators and dumpers, which are Equipment. It means permanent machinery and installations that stay behind when the Contractor leaves.

The definition is at clause 11.2 (item 12 in NEC3 ECC). Intention is the key word, so an item counts from the moment it's meant for the works, even while it's still in a factory. That's what makes the term important for ownership and for off-site payment. This page is part of the NEC definitions glossary.

Who owns it, and when

Section 7 of the core clauses deals with title, and most teams only read it when something has gone wrong.

Situation	Position	Clause
Outside the Working Areas, and not marked	Title stays where it is	70.1
Outside the Working Areas, marked as for this contract	The Contractor's title passes to the Client	70.1
Brought within the Working Areas	The Contractor's title passes to the Client	70.2
Removed from the Working Areas with permission	Title passes back to the Contractor	70.2

Marking happens under 71.1. It's available where two things are true: the contract lists the items for payment, and the Contractor has got them ready in the way the Scope says.

The title trap

The clause only passes whatever title the Contractor has. If the Contractor doesn't own the item, because the supplier's terms keep title until it's paid, there's nothing to pass. So a Client can pay for items on Site and still not own them if the supply chain later collapses.

A worked example

A fictional water treatment job with illustrative figures. A £300,000 set of pumps is built at a supplier's works. The Client wants to pay before delivery, to help the Contractor's cash flow.

1. The Contract Data and Scope identify the pumps for payment and set out the marking, storage and insurance requirements.
2. The Supervisor marks them under 71.1, once the Contractor has prepared them as required.
3. The Client's team asks to see the supply contract before paying, and finds a clause keeping title with the supplier until it has been paid in full.
4. They fix this by requiring a confirmation from the supplier, or by paying only once the Contractor shows it has paid.

Without step 3, the marking would look reassuring and offer little protection. If the Contractor became insolvent, the Client could end up paying twice. Legal advice is worthwhile on large off-site payments, and security like a bond under Option X14 may also suit.

How it differs from Equipment

The same item can be either. A pump left permanently in the pumping station is Plant and Materials. A pump the Contractor uses for dewatering and takes away is Equipment. Ask what the Scope requires to be left behind. Items you've bought but won't use, or surplus to the job, don't sit easily under either heading, so check how the cost schedules deal with disposal and surplus.

Where else it matters

• Cost. Plant and Materials have their own section in the Schedule of Cost Components, covering purchase, delivery, and allowance for disposal.
• Tests. The Contractor may not bring certain items to the Working Areas until the tests required have passed. The tests and inspections guide explains more. Clause 42 deals with testing and inspection before delivery in NEC4.
• Design. A supplier who designs what it provides is a separate question. NEC3 treats some such suppliers as a Subcontractor, and NEC4's rule differs.

What people get wrong

• Using site language in contract letters. "We'll get the plant off site" could mean opposite things to the two readers. Use the defined terms.
• Assuming ownership means responsibility has moved. Title and the risk of damage are dealt with separately. Liabilities and insurance are in section 8, so don't assume a transfer of title shifts the risk.
• Removing materials without permission. Once inside the Working Areas, they've passed to the Client. Taking surplus stock to another job needs the Project Manager's permission if title is going to pass back cleanly.
• Thinking the Working Areas are only the Site. Items brought into a working area off Site can trigger title transfer too. Check the entry and whether anything has been added.

Related guides

• NEC Definitions: A Glossary of Key Terms
• Prices
• Price for Work Done to Date
• Risk Register
• Parties
• People

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.