HIRE US

Specialist Project and Contract Advice and Assistance

Project Type

Our Client was a specialist international design and construction contractor employed in the UK under an NEC3 Option C contract for the design and construction (excluding civils) of a new water treatment works using technology new to the UK. Our Client was inexperienced in working in the UK and under NEC forms of contract.

Description of Issues

The contractor’s works were delayed and disrupted as a result of delays by the civils’ contractor and delays in provision of design information and other information by the Employer. In addition, as a result of numerous z clauses, there were a number of contractual interpretation issues that were in dispute, including the currency in which payments were to be made, how the Fee applied, and how key dates were dealt with.

Entitlements or Liabilities

It became apparent that key dates would be delayed and that significant painshare would arise, and the Employer had failed to be convinced of entitlement and was threatening damages.  In addition, there were issues with a significant subcontract.

How did TREO help?

We provided all-round support to our Client for 12 months and more, which included assistance and resolution of the following:

  1. Submissions leading to negotiated agreement on contractual interpretation issues.
  2. Delay analysis presented and stepped through with the Employer demonstrating where and how delay had been caused and leading to agreement of extensions of time and mitigating liability for damages.
  3. Assessment of prolongation and direct costs linked to events and CE’s leading to a negotiated change to the TotP.
  4. Assistance to negotiate a “line in the sand” DoV and convert to a cost-reimbursable model to accommodate an extended maintenance and commissioning period due to extensive Employer delay.
  5. Audit of Defined Costs under the main subcontract to ensure in accordance with NEC and to avoid exposure of disallowed costs upstream.

As a result of our work, we now support our Client in pre-contract risk assessment and negotiation of NEC terms and conditions for new projects for which they bid in the UK.

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enquiries@treo-consulting.com