NEC4 ECC clause index
177 references from the NEC4 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 Client a guarantee from its ultimate holding company, in the form the Scope sets out Guide |
| X10.4 | (Option X10) The Contractor sends its Information Execution Plan for acceptance, and a revised one when instructed Guide |
| X13.1 | (Option X13) A performance bond is provided to the Client by the Contractor, from a bank or insurer the Project Manager has accepted Guide |
| X16.3 | (Option X16) The Contractor may give a retention bond, from a bank or insurer, in the form the Scope sets out Guide |
| X22.3 | (Option X22) The Contractor sends its design and priced proposals for Stage Two Guide |
| X22.5 | (Option X22) The Project Manager notifies whether the Contractor is to go ahead with Stage Two Guide |
| X29.4 | (Option X29) The Contractor sends its climate change plan for acceptance, and revised plans as the contract requires Guide |
| X29.11 | (Option X29) The Contractor may propose a change to the Scope that lessens the impact on climate change, with a quotation (not a compensation event) Guide |
| X29.12 | (Option X29) The Contractor reports how it is doing against each Performance Table target Guide |
| Y3.3 | (Option Y(UK)3) The Project Manager tells the Contractor the name of a beneficiary that the Contract Data describes only by type Guide |
Instructions
| Clause | In plain English |
|---|---|
| 14.3 | An instruction altering the Scope or a Key Date Guide |
| 15.2 | An instruction to attend an early warning meeting Guide |
| 16.2 | An instruction changing the Scope after accepting a proposal from the Contractor to reduce what the Client pays Guide |
| 17.1 | An instruction saying how an ambiguity or inconsistency between the documents is to be resolved Guide |
| 17.2 | An instruction changing the Scope 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 |
| 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 start, or that it is taken out of the Scope Guide |
| 36.1 | An instruction to quote for finishing early (acceleration) Guide |
| 40.3 | An instruction to put right a failure to follow the quality plan Guide |
| 43.1 | An instruction, with reasons, to search for a Defect Guide |
| 45.2 | An instruction accepting a Defect instead of having it corrected (for lower Prices, an earlier Completion Date or both) Guide |
| 60.6 | (Options B and D) An instruction correcting a mistake in the Bill of Quantities 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 |
| 92.2 | An instruction on termination to leave the Site, take away Equipment, Plant and Materials, and pass over the benefit of subcontracts Guide |
| X22.4 | (Option X22) An instruction about replacing a key person during Stage One Guide |
| X22.5 | (Option X22) An instruction taking the Stage Two work out of the Scope (not a compensation event) Guide |
Early warnings
| Clause | In plain English |
|---|---|
| 15.1 | A rise in the total of the Prices Guide |
| 15.1 | A delay to Completion Guide |
| 15.1 | A delay in meeting a Key Date Guide |
| 15.1 | Poorer performance of the works once in use Guide |
| 15.1 | A rise in the Contractor's own total cost (a warning the Contractor may give) Guide |
| 15.1 | 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. The Project Manager puts each one on the Early Warning Register. Guide |
| 15.3 | An early warning meeting looks for ways to avoid or reduce the registered matters, agrees who does what about them, and decides which have been dealt with or have passed and can come off the Register. Guide |
| 15.4 | After each early warning meeting the Project Manager updates the Early Warning Register with the decisions taken and sends it to the Contractor, with an instruction for any change to the Scope those decisions need. Guide |
| X29.3 | (Option X29) A matter that could harm meeting the Climate Change Requirements Guide |
Submissions for acceptance
| Clause | In plain English |
|---|---|
| 21.2 | The Contractor sends the details of its design that the Scope 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 Scope 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 Scope 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 documents it proposes for each of its subcontracts (pricing left out) for acceptance. This is not needed for an NEC form used without changes, or where the Project Manager has agreed to do without it. Guide |
| 26.3 | The documents would stop the Contractor providing the works Guide |
| 26.3 | The documents leave out a statement that the parties will work together in mutual trust and co-operation Guide |
| 40.2 | Within the period in the Contract Data, the Contractor gives the Project Manager its quality policy statement and quality plan for acceptance, and any changed quality plan later. Guide |
| 40.2 | The quality policy statement or quality plan would not let the Contractor provide the works Guide |
| 55.3 | (Option A) When the Contractor changes how it plans to work, or corrects the activity schedule to match the Scope, it sends a revised activity schedule for acceptance. Guide |
| 55.4 | (Option A) The revised schedule does not match the operations in the Accepted Programme Guide |
| 55.4 | (Option A) Changed Prices are not spread reasonably across the activities Guide |
| 55.4 | (Option A) The total of the Prices has changed Guide |
| 84.1 | Before the starting date and at each renewal, the Contractor sends certificates, signed by its insurer or broker, showing the insurance the contract requires is in force, for acceptance. Guide |
| 84.1 | The insurance does not meet what the contract requires Guide |
| X4.1 | (Option X4) The Contractor gives the Client its ultimate holding company's guarantee of its performance, worded as the Scope sets out Guide |
| X13.1 | (Option X13) A performance bond for the amount in the Contract Data, given to the Client 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 |
Key Dates
| Clause | In plain English |
|---|---|
| 25.3 | If a Key Date's Condition is not met in time and the Client 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 |
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 is in the form the Scope asks for and sets out, among other things: planned Completion; the Completion Date, Key Dates, starting date and access dates; the order and timing of the Contractor's work and of work by others; when each Key Date's Condition will be met; float, time risk allowances and health and safety needs; when the Contractor needs access, acceptances, things to be provided and information; and how each operation will be done. 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 Scope. Guide |
| 31.3 | If the Project Manager neither accepts nor rejects a programme in time, the Contractor may notify that failure. If there is still no answer in the further time the contract allows, the programme counts as accepted. Guide |
| 32.1 | A revised programme records progress and how it affects the remaining work, the effect of 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 |
|---|---|
| 41.1 | The Scope and the law set out which tests and inspections are done, and the Scope says who does each one. Guide |
| 41.2 | The Client (and the Contractor, where the Scope says so) provides what tests and inspections need: the materials, facilities and samples the Scope sets out. Guide |
| 41.3 | 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 |
| 41.3 | Each side tells the other the results of each of its tests and inspections. Guide |
| 41.3 | The Supervisor may watch any test the Contractor does. Guide |
| 41.4 | If a test or inspection shows a Defect, the Contractor corrects it and the test or inspection is done again. Guide |
| 41.5 | The Supervisor carries out its tests and inspections without holding up the work, or a payment that depends on a test passing, more than it needs to. Guide |
| 41.6 | When a test or inspection has to be done again because it found a Defect, the Project Manager assesses what the repeat cost the Client, and the Contractor pays that. Guide |
| 42.1 | Plant and Materials that the Scope 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 |
|---|---|
| 43.1 | 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 Scope asks for. Guide |
Defects
| Clause | In plain English |
|---|---|
| 43.2 | Up to the defects date, each side tells the other of every Defect it finds, straight away. Guide |
| 44.2 | A notified Defect has to be put right by the Contractor before its defect correction period ends. Guide |
| 46.1 | 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 |
| 46.2 | 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 |
| X18.6 | (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 |
| 50.2 | Before each assessment date the Contractor sends the Project Manager an application for payment, setting out the amount it considers due and how it was worked out. Guide |
| 50.5 | If the Contract Data names no programme, the Project Manager holds back a quarter 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 |
| 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; 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 |
| 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 |
| X22.6 | (Option X22) The Project Manager assesses changes to the Budget Guide |
| X22.7 | (Option X22) The Project Manager assesses the budget incentive provisionally once the whole of the works is complete, and finally later 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 |
Final assessment
| Clause | In plain English |
|---|---|
| 53.1 | The Project Manager assesses the final amount due, and certifies any final payment, within the time the contract allows after the Defects Certificate (or a termination certificate). Guide |
| 53.2 | If the Project Manager does not make the final assessment in time, the Contractor may send its own assessment of the final amount due, with the details. Guide |
| 53.3 | The final assessment becomes conclusive unless a Party refers a dispute about it within the time the contract allows. Guide |
Termination
| Clause | In plain English |
|---|---|
| 53.1 | After a termination certificate the final amount due is assessed within the stated time, as the final assessment. Guide |
| 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 |
| 91.2 | If the Contractor does not put right in time a default the Project Manager notified, the Client may terminate. Guide |
| 91.3 | If the Contractor does not stop in time a default it was told of, the Client 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 Client 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 |
Compensation events
| Clause | In plain English |
|---|---|
| 60.1(1) | The Project Manager changes the Scope 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 Scope) 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 Client 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 Client or Others work outside the times on the Accepted Programme or the conditions in the Scope, or do Site work the Scope 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 the contract's conditions list among the Client's liabilities 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 Client fails to supply the materials, facilities or samples for testing that the Scope 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 Client 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 |
| 60.1(20) | The Project Manager turns down the Contractor's quotation for a proposed instruction Guide |
| 60.1(21) | An extra compensation event that the Contract Data lists happens 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 the Project Manager or the Supervisor causes an event with an instruction, a notification, a certificate or a changed decision, the Project Manager notifies it as a compensation event at that same time. Guide |
| 61.2 | 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, notification, certificate or changed decision of the Project Manager or the Supervisor. 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 was notified too late, 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 |
| Y2.5 | (Option Y(UK)2) The Contractor suspends performance as the Construction Act allows 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 done before the dividing date actually cost (Defined Cost), what the work after it is forecast to cost, and the resulting Fee. That date is the day of the instruction, notification, certificate or changed decision behind the event; for any other event, the day it was notified. Guide |
| 63.5 | The delay to the Completion Date, or to a Key Date, is how much later the event makes planned Completion (or the planned date for meeting that Key Date's Condition) than the Accepted Programme shows as it stood at the dividing date. 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 |
| 66.1 | A compensation event is implemented once the Project Manager accepts the quotation, notifies its own assessment, or a quotation counts as accepted. Guide |
| 66.3 | Once implemented, a compensation event's assessment stays as it is, except where the contract allows a change. 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, 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. Guide |
Proposed instructions
| Clause | In plain English |
|---|---|
| 65.1 | The Project Manager may ask for a quotation for an instruction it is only proposing, saying by when it may give it; the Contractor does not act on it unless it is given. Guide |
| 65.2 | The Project Manager answers the quotation by the date it may give the instruction: an instruction to send a revised quotation, the instruction itself with the quotation accepted, or notice that the quotation is not accepted (no answer in time counts as not accepted). Guide |
| 65.2 | The instruction is given, as a compensation event, and the quotation is accepted. Guide |
| 65.2 | A revised quotation is asked for, with the reasons. Guide |
| 65.2 | The quotation is not accepted. Guide |
Where next?
Work out a real date in the deadline calculator, look up any clause in the clause finder, or test yourself with a quiz.
General information in our own words, not legal advice. Your own contract, its Contract Data and any Z clauses decide.