NEC3 ECC clause index
186 references from the NEC3 Engineering and Construction Contract, grouped by topic. These are our own plain words, not the contract's wording, so keep your own copy to hand.
General rules and communications
| Clause | In plain English |
|---|---|
| 13.1 | Every communication the contract calls for has to be something that can be read, copied and kept on record. Guide |
| 13.3 | Where the contract asks for an answer, it is given within the period for reply unless the contract says otherwise. Guide |
| 13.4 | The Project Manager answers anything sent for acceptance: it accepts it, or explains why not so the Contractor can send it again. Guide |
| 13.5 | The period for reply to a communication can be extended only if both agree before the reply is due. Guide |
| X4.1 | (Option X4) The Contractor gives the Employer a guarantee from its parent company, in the form the Works Information sets out Guide |
| X13.1 | (Option X13) A performance bond is provided to the Employer by the Contractor, from a bank or insurer the Project Manager has accepted Guide |
| X20.2 | (Option X20) The Contractor reports its performance against each Key Performance Indicator, at the intervals in the Contract Data Guide |
| X20.3 | (Option X20) The Contractor proposes how to improve where it forecasts missing a Key Performance Indicator target Guide |
| Y1.4 | (Option Y(UK)1) The Contractor sends details of how the Project Bank Account will be run, for acceptance Guide |
| Y1.6 | (Option Y(UK)1) The Contractor proposes a new Supplier to join the Named Suppliers, for acceptance Guide |
| Y3.1 | (Option Y(UK)3) Someone who is not a Party can enforce a term only if the Contract Data names both that person and the term Guide |
Submissions for acceptance
| Clause | In plain English |
|---|---|
| 13.4 | More information is needed to judge the submission fully Guide |
| 13.4 | (Options A and C) More information is needed to judge the submission fully Guide |
| 13.4 | (Option X13) More information is needed to judge the submission fully Guide |
| 13.4 | (Option X14) More information is needed to judge the submission fully Guide |
| 21.2 | The Contractor sends the details of its design that the Works Information calls for to the Project Manager for acceptance, and holds back the work it covers until it is accepted. Guide |
| 21.2 | The design does not meet the Works Information Guide |
| 21.2 | The design does not meet the applicable law Guide |
| 23.1 | When the Project Manager instructs it, the Contractor sends the design of an item of Equipment for acceptance. Guide |
| 23.1 | With the item as designed, the works could not be provided as the Works Information requires Guide |
| 23.1 | With the item as designed, the works could not be provided in line with the Contractor's accepted design Guide |
| 23.1 | With the item as designed, the works could not be provided within the applicable law Guide |
| 24.1 | The Contractor proposes someone to replace a key person named in the Contract Data, with their name, relevant qualifications and experience, for acceptance. Guide |
| 24.1 | The proposed person is less qualified or experienced for the job than the key person they replace Guide |
| 26.2 | The Contractor sends the name of each firm it proposes to subcontract work to, for acceptance before it appoints them. Guide |
| 26.2 | Appointing them would stop the Contractor providing the works Guide |
| 26.3 | The Contractor sends the conditions it proposes for each of its subcontracts for acceptance. This is not needed where an NEC form is used, or where the Project Manager has agreed to do without it. Guide |
| 26.3 | The conditions would stop the Contractor providing the works Guide |
| 26.3 | The conditions leave out a statement that the parties will work together in mutual trust and co-operation Guide |
| 26.4 | (Options C, D, E and F) The proposed contract data for one of its subcontracts, sent when instructed, would stop the Contractor providing the works Guide |
| 54.2 | (Options A and C) When the Contractor changes how it plans to work so that the Activity Schedule no longer matches the Accepted Programme, it sends a revised Activity Schedule for acceptance. Guide |
| 54.3 | (Options A and C) The revision does not match the Accepted Programme Guide |
| 54.3 | (Options A and C) Changed Prices are not spread reasonably across the activities Guide |
| 54.3 | (Options A and C) The total of the Prices has changed Guide |
| 85.1 | Before the starting date and at each renewal until the defects date, the Contractor sends certificates, signed by its insurer or broker, showing the insurance the contract requires is in force, for acceptance. Guide |
| 85.1 | The certificates do not meet what the contract requires Guide |
| X4.1 | (Option X4) The Contractor gives the Employer its parent company's guarantee of its performance, worded as the Works Information sets out Guide |
| X13.1 | (Option X13) A performance bond for the amount in the Contract Data, given to the Employer by the Contractor from a bank or insurer the Project Manager has accepted Guide |
| X13.1 | (Option X13) The bank or insurer is not financially strong enough to back the bond Guide |
| X14.2 | (Option X14) Where the Contract Data asks for an advanced payment bond, the Contractor provides it from a bank or insurer the Project Manager has accepted Guide |
| X14.2 | (Option X14) The bank or insurer is not financially strong enough to back the bond Guide |
Instructions
| Clause | In plain English |
|---|---|
| 14.3 | An instruction altering a Key Date or the Works Information Guide |
| 16.2 | An instruction to attend a risk reduction meeting Guide |
| 17.1 | An instruction settling an ambiguity or inconsistency between the documents Guide |
| 18.1 | An instruction changing the Works Information because it asks for something illegal or impossible Guide |
| 19.1 | An instruction on how to handle an event that prevents the work (prevention) Guide |
| 23.1 | An instruction to send the design of an item of Equipment for acceptance Guide |
| 24.2 | An instruction, with reasons, to remove a person from the work Guide |
| 26.4 | (Options C, D, E and F) An instruction to send the proposed contract data for one of the Contractor's subcontracts for acceptance Guide |
| 32.2 | An instruction to send a revised programme Guide |
| 34.1 | An instruction to stop work or not to start it Guide |
| 34.1 | An instruction that stopped work may restart, or that work may start Guide |
| 36.1 | An instruction to quote for finishing early (acceleration) Guide |
| 42.1 | An instruction, with reasons, to search for a Defect Guide |
| 44.2 | An instruction accepting a Defect instead of having it corrected (for lower Prices, an earlier Completion Date or both) Guide |
| 62.1 | An instruction to send alternative quotations for a compensation event Guide |
| 73.1 | An instruction on what to do with a valuable or historic object found on the Site Guide |
| 82.1 | An instruction not to make good a loss or damage Guide |
| 92.2 | An instruction on termination to leave the Site, take away Equipment, Plant and Materials, and pass over the benefit of subcontracts Guide |
| X12.3(5) | (Option X12) An instruction carrying out a decision of the Core Group Guide |
Early warnings
| Clause | In plain English |
|---|---|
| 16.1 | A rise in the total of the Prices Guide |
| 16.1 | A delay to Completion Guide |
| 16.1 | A delay in meeting a Key Date Guide |
| 16.1 | Poorer performance of the works once in use Guide |
| 16.1 | (Contractor only) A rise in the Contractor's own total cost Guide |
| 16.1 | Either side warns the other as soon as it knows of something that could push up the total of the Prices, or delay Completion or a Key Date, or harm how the works perform in use. Guide |
| 16.3 | A risk reduction meeting looks for ways to avoid or reduce the registered risks, agrees who does what about them, and decides which risks are no longer live. Guide |
| 16.4 | After each risk reduction meeting the Project Manager updates the Risk Register with the decisions taken and sends it to the Contractor, along with an instruction for any change to the Works Information those decisions need. Guide |
| X12.3(3) | (Option X12) A matter that could stop another Partner meeting its objectives (warn the other Partners) Guide |
Key Dates
| Clause | In plain English |
|---|---|
| 25.3 | If a Key Date's Condition is not met in time and the Employer has to pay more as a result, the Contractor pays that extra cost, as assessed by the Project Manager. Guide |
| 30.3 | Each Key Date's Condition has to be met by that Key Date; that is the Contractor's responsibility. Guide |
| X5.1 | (Option X5) Completion and the Completion Date can apply to a section of the works as well as to the whole Guide |
Programme
| Clause | In plain English |
|---|---|
| 31.1 | Unless the Contract Data already names a programme, the Contractor sends its first programme for the Project Manager to accept, within the period the Contract Data sets. Guide |
| 31.2 | A programme sent for acceptance has to set out, among other things: planned Completion; the Completion Date, Key Dates, starting date and access dates; the sequence of the Contractor's operations and of work by others; when each Key Date's Condition will be met; float, time risk allowances and health and safety; when the Contractor will need access, acceptances, things to be provided and information; and a method statement for each operation. Guide |
| 31.3 | The Project Manager answers a programme sent for acceptance within the period allowed, either accepting it or explaining why not. Guide |
| 31.3 | The Project Manager accepts the programme. Guide |
| 31.3 | The Project Manager rejects the programme for one of the reasons the contract allows: its plans are impractical, it leaves out required information, it is unrealistic about the Contractor's plans, or it conflicts with the Works Information. Guide |
| 32.1 | A revised programme records progress and how it affects the remaining work, the effect of implemented compensation events, the plan for delays and notified Defects, and any other changes the Contractor wants to make. Guide |
| 32.2 | The Contractor sends a revised programme for acceptance when instructed (within the period for reply), whenever it chooses, and at least as often as the Contract Data requires. Guide |
Tests and inspections
| Clause | In plain English |
|---|---|
| 40.1 | The Works Information and the law set out which tests and inspections are done, and the Works Information says who does each one. Guide |
| 40.2 | Each side provides what the Works Information says it will for tests and inspections: materials, facilities and samples. Guide |
| 40.3 | Each side tells the other before it starts each of its tests or inspections. The Contractor warns early enough for the test or inspection to be set up and carried out before any work that would cover it up. Guide |
| 40.3 | Each side tells the other the results of each of its tests and inspections. Guide |
| 40.3 | The Supervisor may watch any test the Contractor does. Guide |
| 40.4 | If a test or inspection shows a Defect, the Contractor corrects it and the test or inspection is done again. Guide |
| 40.5 | The Supervisor does its tests and inspections without holding up the work, or a payment that depends on a test passing, more than it needs to. Guide |
| 40.6 | When a test or inspection has to be done again because it found a Defect, the Project Manager assesses what the repeat cost the Employer, and the Contractor pays that. Guide |
| 41.1 | Plant and Materials that the Works Information says are tested or inspected before delivery are not brought to the Working Areas until the Contractor has been told that they passed. Guide |
Searching for Defects
| Clause | In plain English |
|---|---|
| 42.1 | A search may mean opening up work and putting it back (uncovering and re-covering, taking apart and re-erecting), supplying what tests and inspections need, and carrying out tests and inspections beyond those the Works Information asks for. Guide |
Defects
| Clause | In plain English |
|---|---|
| 42.2 | Up to the defects date, each side tells the other about each Defect as soon as it finds it. Guide |
| 43.2 | A notified Defect has to be put right by the Contractor before its defect correction period ends. Guide |
| 45.1 | If the Contractor had access but left a notified Defect uncorrected in time, the Project Manager assesses what it costs to have others correct it, and the Contractor pays that. Guide |
| 45.2 | Where the Contractor is not given access to put right a notified Defect by the defects date, it pays the Project Manager's assessment of what the repair would have cost it. Guide |
| X15.1 | (Option X15) A Defect from the Contractor's own design is not its liability where it proves reasonable skill and care were used Guide |
| X17.1 | (Option X17) A Defect on the Defects Certificate that shows low performance against a stated level makes the Contractor pay low performance damages Guide |
| X18.3 | (Option X18) The Contractor's liability for design Defects not listed on the Defects Certificate is capped at the amount in the Contract Data Guide |
| X18.5 | (Option X18) The Contractor is liable for a matter only if it was notified before the end of liability date Guide |
Payment
| Clause | In plain English |
|---|---|
| 50.1 | The amount due is assessed by the Project Manager on each assessment date, which comes round at the interval set in the Contract Data. Guide |
| 50.3 | If the Contract Data names no programme, the Project Manager holds back 25% of each assessment's Price for Work Done to Date until the Contractor sends a first programme with all the information the contract requires. Guide |
| 50.4 | The Project Manager takes account of any payment application received by the assessment date and explains how it arrived at the amount due. Guide |
| 51.1 | Payment certificates are issued by the Project Manager within the time allowed after each assessment date. Guide |
| 51.2 | Each certified sum is paid within the time allowed after the assessment date; any late payment, including one late because no certificate was issued, carries interest. Guide |
| 51.3 | An amount corrected in a later certificate carries interest. Guide |
| X1.4 | (Option X1, main Options A and B) Each amount due includes a price adjustment worked out with the Price Adjustment Factor Guide |
| X1.5 | (Option X1, main Options C and D) A price adjustment worked out at each assessment raises the total of the Prices Guide |
| X3.1 | (Option X3) Items listed in the Contract Data are paid in other currencies, converted at the stated exchange rates Guide |
| X6.1 | (Option X6) The Contractor earns the daily bonus in the Contract Data for finishing ahead of the Completion Date Guide |
| X7.1 | (Option X7) The Contractor pays the daily delay damages in the Contract Data for each day Completion is later than the Completion Date Guide |
| X7.2 | (Option X7) If the Completion Date moves later after delay damages were paid, the Employer pays back the excess with interest Guide |
| X7.3 | (Option X7) When the Employer takes over part of the works early, the Project Manager assesses how much the delay damages fall Guide |
| X12.4(1) | (Option X12) A Partner that meets or beats a Key Performance Indicator target is paid the amount in the Schedule of Partners Guide |
| X14.1 | (Option X14) The Employer pays the Contractor the advanced payment stated in the Contract Data Guide |
| X14.3 | (Option X14) The Contractor repays the advanced payment in instalments taken from later amounts due Guide |
| X16.1 | (Option X16) Once the Price for Work Done to Date passes the retention free amount, the retention percentage is held back from each amount due Guide |
| X16.2 | (Option X16) Retention drops to half once the whole of the works is completed or taken over, and none is held after the Defects Certificate Guide |
| X20.4 | (Option X20) The Contractor is paid the Incentive Schedule amount for meeting or beating a Key Performance Indicator target Guide |
| Y1.9 | (Option Y(UK)1) The Contractor prepares and signs the Authorisation setting out what the project bank pays the Named Suppliers and the Contractor Guide |
| Y2.2 | (Option Y(UK)2) The contract fixes when each payment falls due and its final date for payment; the Project Manager's certificate is the payment notice, giving the sum due and how it was worked out Guide |
| Y2.3 | (Option Y(UK)2) To pay less than the notified sum, a Party gives notice of the sum it considers due, and the basis for it, no later than the prescribed period (seven days) ahead of the final date for payment. Guide |
Compensation events
| Clause | In plain English |
|---|---|
| 60.1(1) | The Project Manager changes the Works Information by instruction (except one made to accept a Defect, or one altering the Contractor's own design at the Contractor's request or to fit other Works Information) Guide |
| 60.1(2) | Access to part of the Site comes late: after both its access date and the date on the Accepted Programme Guide |
| 60.1(3) | Something the Employer has to provide arrives later than the Accepted Programme shows Guide |
| 60.1(4) | The Project Manager instructs that work stops or does not start, or changes a Key Date Guide |
| 60.1(5) | The Employer or Others work outside the times on the Accepted Programme or the conditions in the Works Information, or do Site work the Works Information leaves out Guide |
| 60.1(6) | A communication from the Contractor gets no reply from the Project Manager or the Supervisor in the time the contract sets Guide |
| 60.1(7) | The Project Manager instructs what to do with a valuable or historic object found on the Site Guide |
| 60.1(8) | The Project Manager or the Supervisor goes back on a decision already given to the Contractor Guide |
| 60.1(9) | The Project Manager withholds an acceptance for a reason the contract does not give (acceptance of an acceleration quotation, or of a quotation for leaving a Defect, excepted) Guide |
| 60.1(10) | A search for a Defect is instructed and finds none (unless it was needed only because the Contractor gave too little notice of work that would block a required test or inspection) Guide |
| 60.1(11) | The Supervisor holds work up unnecessarily with a test or inspection Guide |
| 60.1(12) | The Contractor finds physical conditions on the Site, other than weather, so unlikely, as seen at the Contract Date, that an experienced contractor could not reasonably have allowed for them (only the part beyond a reasonable allowance counts) Guide |
| 60.1(13) | A month's weather, recorded before the Completion Date at the place the Contract Data names, that the weather data shows to happen, on average, less often than once in ten years (only the excess counts) Guide |
| 60.1(14) | An event that falls among the Employer's risks in the contract Guide |
| 60.1(15) | Part of the works is taken over (and certified) while Completion and the Completion Date are both still to come Guide |
| 60.1(16) | The Employer fails to supply the materials, facilities or samples for testing that the Works Information says it will Guide |
| 60.1(17) | The Project Manager corrects an assumption it gave about a compensation event Guide |
| 60.1(18) | Any other breach of contract by the Employer that no other compensation event covers Guide |
| 60.1(19) | An event neither Party could prevent, so unlikely, as seen at the Contract Date, that an experienced contractor could not reasonably have allowed for it, which stops the Contractor finishing the works (or finishing by the Accepted Programme date) and is not another compensation event Guide |
| 60.4 | (Options B and D) The final quantity of an item differs from the Bill of Quantities, in the cases the contract sets out Guide |
| 60.5 | (Options B and D) A quantity difference against the Bill of Quantities delays Completion or a Key Date Guide |
| 60.6 | (Options B and D) A mistake in the Bill of Quantities is corrected Guide |
| 61.1 | When an event comes from an instruction, certificate, changed decision or corrected assumption that the Project Manager or the Supervisor gave, the Project Manager notifies the compensation event at the same time. Guide |
| 61.1 | Along with the notification, the Project Manager asks the Contractor for quotations, unless the event is the Contractor's fault or quotations are already in. Guide |
| 61.3 | The Contractor notifies an event it believes is a compensation event that the Project Manager has not notified. If it is late (outside the time the contract allows), the Prices and dates do not change, unless the event came from an instruction, certificate, changed decision or corrected assumption. Guide |
| 61.4 | The Project Manager answers a compensation event the Contractor has notified within the time allowed: either nothing changes, or the Contractor is to send quotations. Guide |
| 61.4 | This is a compensation event, and the Contractor is to send quotations. Guide |
| 61.4 | The Prices and dates stay as they are: the event is the Contractor's fault, or it has not occurred and is not expected to, or it does not affect Defined Cost, Completion or a Key Date, or the contract does not list it as a compensation event. Guide |
| 61.4 | If the Project Manager gives no answer, the Contractor may notify that failure. If there is still no answer in the time the contract allows, the event counts as a compensation event and quotations count as instructed. Guide |
| X2.1 | (Option X2) A change in the law of the Site's country that takes effect after the Contract Date Guide |
| X12.3(6) | (Option X12) The Core Group changes the Partnering Information by instruction Guide |
| X12.3(7) | (Option X12) The Contractor changes its programme to follow the Core Group's revised timetable Guide |
| X14.2 | (Option X14) The advanced payment is made late Guide |
| X15.2 | (Option X15) The Contractor corrects a Defect it is not liable for Guide |
| Y2.4 | (Option Y(UK)2) The Contractor suspends performance as the Construction Act allows Guide |
Proposed instructions
| Clause | In plain English |
|---|---|
| 61.2 | The Project Manager may ask for quotations for an instruction or changed decision it is only proposing; the Contractor does not act on it until it is given. Guide |
| 62.3 | The Project Manager answers the quotation within the time allowed: an instruction to send a revised quotation, acceptance with the instruction, or notice that the instruction will not be given. Guide |
| 62.3 | The instruction is given and the quotation is accepted. Guide |
| 62.3 | A revised quotation is asked for, with the reasons. Guide |
| 62.3 | The proposed instruction will not be given. Guide |
Replies and assessments
| Clause | In plain English |
|---|---|
| 61.6 | Where the effects are too uncertain to forecast, the Project Manager sets assumptions for the quotations, and notifies a correction if one turns out wrong. Guide |
| 63.1 | The change to the Prices is worked out from the effect on what the work already done actually cost (Defined Cost), what the work still to do is forecast to cost, and the resulting Fee. Guide |
| 63.3 | The delay to the Completion Date, or to a Key Date, is how much later than shown on the Accepted Programme the event makes planned Completion (or the planned date for meeting that Key Date's Condition). Guide |
| 64.1 | The Project Manager makes its own assessment if the Contractor has not quoted in time, has assessed the event wrongly and no revised quotation is asked for, has not sent a programme the contract requires, or its latest programme has not been accepted for a reason the contract gives. Guide |
| 64.2 | With no Accepted Programme, or no programme from the Contractor as required, the Project Manager assesses the event against its own view of the programme for the remaining work. Guide |
| 64.3 | The Project Manager gives its assessment, with the details, within the time the Contractor would have had to quote, counted from when the need for it became clear. Guide |
| 64.4 | If the Project Manager does not assess in time, the Contractor may notify that failure. If there is still no answer in the time the contract allows, the Contractor's quotation counts as accepted. Guide |
| 65.1 | A compensation event is implemented once the Project Manager accepts the quotation, gives its own assessment, or a quotation counts as accepted. Guide |
| 65.2 | An implemented assessment stands even if a forecast it relied on later proves wrong. Guide |
| X1.3 | (Option X1) Defined Cost for a compensation event is taken back to base date levels with the Price Adjustment Factor Guide |
Quotations
| Clause | In plain English |
|---|---|
| 62.2 | Each quotation sets out how much the Prices should change and any delay the event causes to Key Dates and the Completion Date, with the working behind it and any changes the Accepted Programme needs. Guide |
| 62.3 | The Contractor sends quotations within the time allowed after being asked for them. Guide |
| 62.3 | The Project Manager answers a quotation within the time allowed: an instruction to send a revised quotation, an acceptance, notice that a proposed instruction or changed decision will not go ahead, or notice that it will make its own assessment. Guide |
| 62.3 | The quotation is accepted. Guide |
| 62.3 | The Contractor is to send a revised quotation. Guide |
| 62.3 | The Project Manager will make its own assessment. Guide |
| 62.4 | A revised quotation can be asked for only once the reasons have been explained; the Contractor sends it within the time allowed. Guide |
| 62.5 | The time to send a quotation, or to answer one, can be extended only if both agree before it runs out. Guide |
| 62.6 | If the Project Manager does not answer a quotation in time, the Contractor may notify that failure. If there is still no answer in the time the contract allows, the quotation counts as accepted (not for a proposed instruction). Guide |
Termination
| Clause | In plain English |
|---|---|
| 90.1 | To terminate, a Party tells the other Party and the Project Manager, giving its reason. Guide |
| 90.1 | The Project Manager certifies termination to both Parties promptly when the reason given is one the contract allows. Guide |
| 90.4 | Within the stated weeks of termination, the Project Manager certifies what is finally due (the amount due on termination less what was paid before); payment follows within the stated time. Guide |
| 91.2 | If the Contractor does not put right in time a default the Project Manager notified, the Employer may terminate. Guide |
| 91.3 | If the Contractor does not stop in time a default it was told of, the Employer may terminate. Guide |
| 91.4 | An amount due left unpaid for the stated weeks after it should have been paid lets the Contractor terminate. Guide |
| 92.1 | What happens on termination: the Employer may finish the works, and the other procedures the Termination Table names for the reason. Guide |
| 93.1 | What the amount due on termination is made up of, with the items the Termination Table adds or takes off for the reason. Guide |
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General information in our own words, not legal advice. Your own contract, its Contract Data and any Z clauses decide.