Financial Claims under NEC3 Contracts: an overview

Christopher Ennis

December 2010

A paper presented to the Society of Construction Law Annual Conference (held in partnership with the Royal Institution of Chartered Surveyors and Leeds Metropolitan University) in Leeds on 5th March 2010

This paper is concerned with financial claims under NEC3 contracts (rather than claims for additional time). Christopher Ennis begins by setting the scene, looking at the salient differences between NEC3 and other forms of contracts and describing the various options. He goes on to consider particular features of NEC3 relevant to claims for additional reimbursement (Defined Cost and Disallowable Cost; Early Warning Notices, Risk Review Meetings and Risk Registers; Compensation Events; and the pain/gain share mechanisms in the Target Options). He goes on to look at some common areas where disputes tend to arise (namely the evaluation of Compensation Events; the importance of Early Warning Notices; the interpretation of the definition of Disallowed Costs; and notice periods) before concluding with some 'war stories'.

Scope - Salient differences between NEC3 and other forms of contract - Outline of particular features of NEC3 relevant to claims for additional reimbursement - Some common areas where disputes tend to arise - War stories.

The author: Christopher Ennis MSc FRICS FCIArb is director of Legal Support at Davis Langdon, an AECOM company.

Text 19 pages.