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The Project Manager Works for the Client: Are They Impartial?

Not in the way an Adjudicator is. An NEC project manager is appointed by the Client, and the NEC3 ECC uses the word "impartially" only for the Adjudicator (NEC4 keeps it there too), but the Project Manager still has to do what the contract says when making decisions.

So the real test isn't who pays the Project Manager. It's whether each decision follows the procedure and the test the contract sets. Clause 10.1 requires action as stated in the contract in both editions, and mutual trust and co-operation apply too (10.2 in NEC4; part of 10.1 in NEC3).

What the contract says, and what it doesn't

QuestionPosition
Can the Project Manager be a Client employee?Nothing in the clauses covered here rules it out. The Contract Data names a person, and the Client can replace them under 14.4
Can the Client tell the Project Manager what outcome it wants?The Project Manager can take the Client's views on matters of choice, such as whether to change the Scope. Assessing an event is different: the contract provides the test
Does the Project Manager have to be fair?The contract requires action as stated, in a spirit of trust. The general law may add to that for anyone deciding matters between Parties. How far is a legal question, so take advice on a real case
What's the check on a bad decision?The Adjudicator can review and revise an action or inaction by the Project Manager. Clause 10 is rarely the main argument

Where the line tends to fall

The Project Manager may properlyThe Project Manager should not
Discuss a Scope change with the Client, and follow its choiceReject a compensation event because the Client says there's no budget
Check a quotation hard, and ask for a revision with reasonsHold a reply back for the Client's sign-off beyond the period
Decide that a default has happened, and notify itCertify termination when the reason doesn't comply
Report the likely cost of events to the ClientAssess at a figure the Client has set in advance

Our guide to Project Manager responsibilities goes through the role, including how it differs from the Adjudicator's.

If you think the Project Manager is being steered

  1. Answer each decision on its merits. Say which test applies and why it's met. Don't start with bias.
  2. Protect your deadlines first: eight weeks under 61.3, and four weeks to dispute under W1. Suspicion doesn't stop them.
  3. Keep records. Note any comment suggesting that the Client decided. Stick to what was said and who said it.
  4. Ask for reasons. Under 13.4, a refusal of acceptance should say enough for you to correct the matter.
  5. Raise it at senior level, calmly, as a request about how the process is running.
  6. Refer it. An adjudication doesn't need a finding of bias. It's enough that the decision was wrong.
  7. Take advice before making any allegation of bad faith. It's a serious claim and it can damage your own case.

A way to raise it

"You replied on [date] that [event] isn't a compensation event. Your reply gave no reason from clause 61.4. Your email of [date] referred to the Client's budget. The contract's test doesn't depend on budget. Please confirm which clause 61.4 reason you're relying on. In the meantime, we're treating your reply as your decision under the contract, and we reserve our position."

A fictional example

On a Client-run framework job, the Project Manager works in the Client's own engineering team. A quotation for a compensation event is rejected in favour of a Project Manager's assessment. The Contractor finds the assessment has no working and matches the Client's remaining contingency to the pound. It doesn't allege bias. It asks for the working, and when nothing comes, it refers the assessment. The referral is about the numbers, and the coincidence is simply one more reason the assessment doesn't hold up. The figures would make this clear to an Adjudicator without any personal attack.

What the Client side will say

Expect "the Project Manager is our agent" and "we're entitled to ask questions". Both are fair up to a point. A Client who really does dictate results takes a risk, since that interference might itself be argued as a breach, and it's likely to come out in a dispute. If you're the Client, ask for advice and options, and let the Project Manager decide.

See also the guide to the NEC Project Manager, the role of the Adjudicator and the NEC questions hub.

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.