NEC3 Engineering & Construction Contract Role of the Project Manager

Transcription

1 NEC3 Engineering & Construction Contract Role of the Project Manager Ian Hedley BSc (Hons) MRICS MACostE MAPM Wednesday 17 th September 2014 Ramada Encore, Haydock 1

2 Aims Background to NEC Contracts Identify what the Project Manager role involves Identify some key duties / actions Suggest ways to manage the process 2

3 Objectives To understand the key duties of the ECC Project Manager and what procedures can be put in place to ensure successful delivery 3

4 Who Am I? MRICS QS (Infrastructure) NEC2 / NEC3 Experience: 15 yrs+ ECC Project Manager Accreditation via NEC Employer & Contractor 4

5 A bit of background 5

6 History Construction pre nineties Claims culture No alternative procurement strategies Clients were demanding increased certainty NEC 1st edition: March 1993 Latham Report: Constructing The Team NEC ECC 2nd Edition: November 1995 NEC3: July 2005 (amended June 2006 & April 2013) 6

7 NEC Suite of Contracts Works Services Supply Other contracts Miscellaneous Documentation 7

8 NEC Philosophy Clear and simple Plain language Flexible Modular; multi-discipline; multi-sector Stimulus to good management Emphasis on procedures, communication and programme 8

9 NEC ECC Structure Core Clauses 1. General 2. The Contractor s main responsibilities 3. Time 4. Testing and Defects 5. Payment (Choose one of 6 options) 6. Compensation Events 7. Title 8. Risks and insurance 9. Termination 9

10 NEC3 ECC Key Players Italics therefore identified in the Contract Data Contracting Entities / Parties (Cl. 11.2(11)): Employer Contractor Participants (Cl. 14): Project Manager Supervisor Others (Cl (10)): Subcontractor(s) Supplier(s) Adjudicator Others (anyone except the above) 10

11 The Project Manager 11

12 The Project Manager Administers the contract (impartially) Generally, the Employer s Agent Can delegate any responsibility Employer has no contractual right to challenge the actions or decisions of the Project Manager 12

13 The Project Manager Only person who can issue instructions changing the Works Information Project Manager has a duty of impartiality Assessing the amount due Assessing compensation events Issuing the Termination Certificate 13

14 Project Manager Duties 14

15 Key Project Manager Duties Early Warnings Programme Compensation events 15

16 Key Project Manager Duties Early Warnings Programme Compensation events 16

17 Project Manager & Early Warnings Every construction project has an element of risk ECC acknowledges this tries to deal with this in a collaborative way (spot, discuss, mitigate/avoid) Early Warning Process (Clause 16) 4 stages: Notify Risk Reduction Meeting (if required) Identify outcome / action plan Update risk register 17

18 Project Manager & Early Warnings How to manage? 1. Ensure awareness of the Early Warning process at the outset joint training / briefing session chaired by PM 2. Agree a joint system to use proformas as a minimum 3. Update the register and circulate to all parties 4. Meet regularly to review the register 5. Be patient / lead the process 18

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21 Key Project Manager Duties Early Warnings Programme Compensation events 21

22 Project Manager & the Programme Fundamental to success of the project Have a plan or plan to fail ECC acknowledges this programme is the heart beat of the contract Section 3 of the contract: Defines what should be included in the programme (cl. 31) The process for updating the programme (cl. 32) The process for accepting the programme at regular intervals 22

23 NEC3 ECC Clause

24 Project Manager & the Programme How to manage? Spend a day together to jointly review the programme Collaborative way of working Agree together = Win-Win! Ensure correct submission and acceptance (cl. 13.1) If not follow the procedure (25% deduction from PWDD) Repeat the above on a regular basis Schedule in review meetings at the outset (min of monthly) 24

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26 Key Project Manager Duties Early Warnings Programme Compensation events 26

27 Project Manager & Comp Events Duty to notify the Contractor of variations! Light the touch paper and stand back is not an option ECC encourages collaborative working and the Comp Event process is at the heart of this Section 6 of the contract: Defines what constitutes a valid change (cl. 60) The process for notifying (cl. 61), quoting (cl. 62), assessing (cl. 63/64), and implementing (cl. 65) 27

28 Project Manager & Comp Events How to manage? Ensure awareness of the compensation event process at the outset joint training / briefing session chaired by PM Agree a joint system to use proformas as a minimum Create and maintain a register / circulate to all parties Meet regularly to review any contentious quotations 28

29 NEC3 ECC Compensation Events Process / Timescales 29

30 Project Manager & Comp Events Does the event arise from a fault of the Contractor? No Has the event happened? Yes Does the event have an affect on the Contractor s costs or Key Date / Completion? Yes Is the event one of the compensation events stated in this contract? Yes Has more than 8 weeks passed since the Contractor became aware of the event? No 30

31 Other Suggestions Employers only appoint competent people! Mad Billy no capacity for silence (Cl (9)) Be proactive! Only act in accordance with the contract Use the contract don t stick it in the drawer Ensure you have adequate support QS / Cost Engineer, planner, document controller 31

32 Other Suggestions Advocate use of online collaborative software solutions Less mistakes Ensures compliance Reduces risk Centralised Data Records / Audit trail Cost reductions (for all parties) 32

33 Recap Project Manager is key to success Main role: to administer the contract (impartially) Has many duties and actions Most likely will need some support Should only act in accordance with the contract Stick to timescales Read the contract! 33

34 End Any questions? Feel free to call, or contact us online at: Solomons Solomons-Europe 34