Assignment Task

Here are some example questions from the Online Multiple Choice Test:

1. The Project Manager acts in a spirit of mutual trust and co-operation?

• TRUE
• FALSE

2. What is the connection between the defects date and the defect correction period?

• The defects date is at the end of the defect correction period
• The defect date is at the start of the defect correction period
• There is no direct connection between the defects date and the defect correction period

3. The latest Programme accepted by the Project Manager supersedes the previous Accepted Programmes

• TRUE
• FALSE

4. An inconsistency within the Employer`s Works Information has been identified by the Contractor. What should the Contractor do?

• Proceed with whatever solution suits the Contractor best
• Notify the Project Manager of the apparent inconsistency
• Stop that part of the works

5. The Contractor has submitted a design for acceptance to the Project Manager but three weeks later has still not received acceptance. If the period for reply in the contract is two weeks, what should the Contractor do?

• Proceed with the relevant work
• Notify an early warning that the lack of acceptance may delay Completion and also increase the total of the Prices
• Notify a compensation event

On an NEC3 Engineering and Construction Contract (ECC) Option A recently awarded contract, incorporating secondary Options X16 and Y(UK)2, the Project Manager has an unfortunate accident and is likely to be off work for a number of months. The starting date had just passed but work was not to start on Site for a few weeks. Two external consultancies were appointed to act in the roles of Project Manager and Supervisor . The consultancy wrote to the Employer saying that Mr James would be taking the role with immediate effect.

a. As Employer , what would you do here?

b. What should the foreman do?

c. As Supervisor , what action would you take here?

d. What would you advise the Project Manager to do here?

Question a

The external consultant does not have the right to unilaterally replace the Project Manager

here. It is only the Employer that may replace either the Project Manager or the Supervisor . This is stated in clause 14.4. First of all though, the Employer must notify the Contractor of the name of the replacement. Before this happens, the Employer needs to be sure that the proposed replacement is both suitable and competent to undertake the role of the Project Manager . This could be a combination of seeing his CV, meeting/interviewing him.

Question b

We do not know in what capacity of the Contractor the foreman is able to act, can he receive valid instructions from the Project Manager and/or Supervisor ? Whatever that capacity, the Supervisor does not have the power to instruct the Contractor to stop/start/re-start any work. This right is given only to the Project Manager , as stated in clause 34.1. The Supervisor therefore does not have the power under the contract to instruct the Contractor to stop any work, unless this has been delegated to him by the Project Manager . The foreman should of course be aware of the requirements of the Works Information. It may be that the Supervisor was actually entitled to inspect the sub-surface because this was a requirement of the Works Information. The foreman should discuss the issue with the Supervisor and, if the inspection was not part of the Works Information, then suggest this matter is immediately dealt with by the Project Manager and a representative of the Contractor . This may be best dealt with as an early warning/risk reduction meeting under clause 16.

Question c

The inspection was clearly considered important enough to put a holding point in the Works Information and the Contractor is in breach by not providing the Works in accordance with the Works Information, clause 20.1. The Supervisor has the right to instruct the Contractor to search for a Defect. If the Supervisor considers it necessary to uncover the particular works, he should instruct the search and give reasons for the search, in accordance with clause

42.1. Normally, where no Defect is found as a result of the search, then a compensation event arises under clause 60.1(10). There is an exception in clause 60.1(10), which covers the situation where the search is needed only because the Contractor gave insufficient notice of doing work obstructing a required test or inspection. It is most likely here therefore that if the search did not expose a Defect, the Employer would not pay the Contractor any additional monies for the uncovering/re-covering of the work. If there was a Defect then the Contractor would correct this at his cost.

Question d

Clause 50.1 requires the Project Manager to assess the amount due at each assessment date. In doing this, he should consider any application for payment the Contractor has submitted on or before the assessment date. This is stated in clause 50.4. This clause goes on to require the Project Manager to give the Contractor details of how the amount due has been assessed. There are a few matters to sort out here with the Contractor . First of all, he will need to establish who gave the verbal instructions, when and for what. Such instructions are not permissible under the contract, ECC clause 13.1 requiring communications which the contract requires to be communicated in a form which can be read, copied and recorded. If

there was to be a valid instruction to change the Works Information, this must be carried out by the Project Manager . If this occurred, then a compensation event would arise under clause 60.1(1). In terms of payment, clause 50.2 states that the ‘amount due is…the Price for Work Done to Date…’ and in turn this is defined in clause 11.2(27) as the total of the Prices for ‘…each completed activity which is not in a group…’. The ‘additional works’ therefore will need to get onto the Activity Schedule in order to be paid when they are completed. This would most likely happen in this case if there was an implemented compensation event under clause 65.1.