The revisals to NEC3 required as a result of the Local Democracy, Economic Development and Construction Act 2009 have been issued.
These are available for free download from the NEC here.
The revisals should be used in contracts entered into after 1 October 2011 in England and after 1 November 2011 in Scotland.
Summary of the key changes
In the Engineering and Construction Contract, Engineering and Construction Subcontract, Professional Services Contract and Term Service Contract, changes to adjudication are made to Option W2 and changes to payment to Option Y(UK)2.
In relation to payment, in the Engineering and Construction Contract, the Project Manager's certificate is the notice of payment to the Contractor specifying the amount due at the payment due date (the notified sum) and is to state the basis on which the amount was calculated.
In the Subcontract, the due date for payment is 14 days after the assessment date, and the final date for payment a further 14 days after that (or such other period specified in Subcontract Data). The Contractor's certificate is the notice of payment.
In both, if there is any intention to pay less than the notified sum, a pay less notice is required 7 days before the final date for payment. This notice is to specify the amount considered to be due (note, not the amount being withheld as before) and the basis on which it is calculated.
In the Engineering and Construction Short Contract, Engineering and Construction Short Subcontract and Term Service Short Contract, the revisals are made by way of additional clauses. In these, the Contractor's/Subcontractor's application for payment is the payment notice, because there is no certification procedure.
In relation to adjudication, the Adjudicator may, within 5 days of his decision, correct the decision to remove clerical or typographical errors. Also, if the Adjudicator's decision changes the amount notified as being due, payment of the new amount is due no later than 7 days from the date of the decision or final date for payment of the notified amount, whichever is later. The adjudicator is given power to allocate his fees and expenses between the parties.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
