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Assignment on a condition where contractor company of JCT and NEC want to avoid any delay in the contract then it requires a claim for the contractual conditions,

Category: Management Paper Type: Assignment Writing Reference: APA Words: 2500

In a condition where contractor company of JCT and NEC want to avoid any delay in the contract then it requires a claim for the contractual conditions,

Management

1. Possible alternative conditions in the contract that are suitable for both companies.

2. The compensation programs to overcome the issues that arise for the completion of the project.

3. It is important to calculate the provisional sums and ground risk for both companies for such conditions that reduce contract timing and services.

4. Before dismissing the contract it is important to deliver the early warning notices to JCT and NEC.

The delivery of the project in the contract of just and NEC can face issues due to current lockdown issues in the UK government as a result of COVID-19. The availability of services can face a delay. It is important to find alternative processes (Albano, Calzolari, Dini, & Iossa, 2007; Andersen & Warner, 2016). There are different key differences between the JCT design & build 2015 form of building contract ('the contract'), and the JCT AND NEC engineering and construction contract option c form of contract ('the NEC contract'). The clauses are different in the contract for the supply of data. The time analysis and mechanics analysis provides information to alter the contract condition. Table 1 below provides an explanation of the relevant clauses to be followed to meet the requirements.

Delay event

Clause

Conducting the analysis dcuk identified that there are no possible conditions to get access fro the no. 6 pine tree. It will be closed with increasing the time for completion of task within four weeks. The contractor on the project has to inform the other team within week 17 about the work conditions and services of non-slip Altro flooring (Tan, Lian Kiang, Goh, Shao Hung, 2017).

In all standard construction contracts, there are standard conditions for the construction contract that deals with the risk-sharing and allocation. In certain circumstances, the contract conditions do not fit for the delivery of services therefore some variation in the contract is necessary. The contract of JCT is for executable events with NEC. The contract is required to be extended with time and to be completed in the timeframe. For the case of jct and NEC contract, there are the list of executable events that are listed below,

1. Ppc 2000 clause of 18.3

2. Nec3 limitation of 60

3. Fidic red book under clause 8.4

4. Jct standard contract of building 2.29

In the case, the Altro flooring will require a specified time of 16 weeks to be completed instead of 11 weeks. The time delay will be due to an extension in the contract. The extension in the plan will cost 50% as compared to the previous cost. In case if lockdown due to COVID-19 will extend to 5 weeks or more then it will cause non-slip Altro flooring.

Completing three delay events

1. In the contract, dcuk evaluated that it requires access to no. 6 pine tree close and the delivery services will face delay in time due to COVID-19 lockdown within the time taken by four weeks (Neccontract. com, 2020).

Early warning notification

Project number

Bnv6119

Project title

Contract practice (2019/2020)

Project manager

Dcuk

Location

Employer

Hometown council

Contractor

Dcuk construction uk ltd

Contract

Delivery of no. 6 pine tree

Early warning notification

Ew no.

123/dck/ew/01

Issued by

Project manager to the contractor

Contractor to project manager

Tick box as appropriate

Description of early warning

The main issue of the contract is that within 17 week the contractor of the project is required got information from no 6 pine tree that it would be difficult to access the work properly due to lockdown. The residents are not allowing them to deliver the services. The overall time delay in the services will be nearly 4 weeks.

Is the matter referred to above likely to

Yes

Increase the total of the prices

Delay completion

Impair the performance of the works in use

Is an early warning meeting required

Tick box as appropriate

Signed

(project manager/contractor*)

*delete as necessary

Date

2020.05.18

Issued to

Contractor

ü Project manager

Supervisor

File

Other

2. The alternative conditions are to use Altro flooring that will require 16 weeks instead of 11 weeks. Because of the time delay, the company may suffer from the higher cost and there will be a 50% increase in the cost. The JCT contract may face provisional sums and cost scrutiny via the contract sum analysis, the NEC contract requires negotiation as a key concept of defined cost and disallowed cost.

Early warning notification

Project number

< to be filled>

Project title

< to be filled>

Project manager

< to be filled>

Location

< to be filled>

Employer

Hometown council

Contractor

Duck construction uk ltd

Contract

< to be filled>

Early warning notification

Ew no.

123/dck/ew/02

Issued by

Project manager to the contractor

Contractor to project manager

Tick box as appropriate

Description of early warning

The work face delay in services and it is expected that the delay in the services will be from 11 weeks to 11 weeks. The delay will cost the company and it will be increased by 50%.

Is the matter referred to above likely to

Yes

Increase the total of the prices

Delay completion

Impair the performance of the works in use

Is an early warning meeting required

Tick box as appropriate

Signed

(project manager/contractor*)

*delete as necessary

Date

2020.05.18

Issued to

Contractor

ü Project manager

Supervisor

File

Other

3. According to the contractor, this lockdown will mean an extra time of 5 weeks is required for the delivery of non-slip Altro flooring (from Italy).

Early warning notification

Project number

< to be filled>

Project title

< to be filled>

Project manager

< to be filled>

Location

< to be filled>

Employer

Hometown council

Contractor

Duck construction uk ltd

Contract

< to be filled>

Early warning notification

Ew no.

123/dck/ew/03

Issued by

Project manager to the contractor

Contractor to project manager

Tick box as appropriate

Description of early warning

The main delay in the contract will be due to the new announcement of the UK government about enforcing lockdown in the region due to COVID-19. The implementation of lockdown will induce an impact on the availability of materials that are required for the project. In such conditions, it will require more than 5 weeks in the delivery of non-slip Altro flooring services from Italy.

Is the matter referred to above likely to

Yes

Increase the total of the prices

Delay completion

Impair the performance of the works in use

Is an early warning meeting required

Tick box as appropriate

Signed

(project manager/contractor*)

*delete as necessary

Date

2020.05.18

Issued to

Contractor

ü Project manager

Supervisor

File

Other

Answer for b

Considering the issues in the contract it requires proper management of time and deliverables. The additional time and cost for the project are required to be mentioned in the contract. The time estimation could go wrong if the government of the UK extend the lockdown for the coming days. The delay will cause a higher cost of the project (Neccontract. com, 2020).

Based on the nec3 clause 60.1, it explains the possible compensation conditions.

The employer actions (working capabilities, employer's failure, allowed work conditions);
Efforts and working conditions by the project manager
Work is done by the supervisor
Deliverables of the workers and others
Working conditions inside and outside the control of management.

Notification of compensation events:

In the case of compensation and extending the time frame for the delivery of services, it requires to complete the contract with the maximum efficient delivery of services. The contracts will be assessed and notified properly. Both JCT and NEC companies will join hands together to cope with the issue. In case of time delay issues of the project, it is important to consider the cost of compensation as well as the cost of delay. Based on the given conditions there are only three possible alternatives for the compensation of events and for the claim.

1. Compensation event for six pine tree close event

Notification of a compensation event - contractor

Project number

< to be filled>

Project title

< to be filled>

Project manager

< to be filled>

Location

< to be filled>

Employer

Hometown council

Contractor

Duck construction uk ltd

Contract

< to be filled>

Notification of a compensation event from the contractor

Nce no.

Nec/dck/001

To the project manager

The following event is likely to occur on

Date

2020 May 15

ü The following event occurred on

Time

10:00 am

Tick box as appropriate

Compensation event

Ecc clause 60.1 ( )

Ecc clauses

60.

Details of the event

The contractor on week 17 is informed about the delay of services. The contract completion date is extending and it will cause issues to the company. The delay will also cost both parties because both parties are legally bound to each other. Instead of every condition in the company, it is important to fulfil the contract and work accordingly.

The compensation event is likely to have/affects on:

Yes

The prices

The completion date

We first became aware of the event on

Date

2020 May 14

Time

10:00 am

(tick box as appropriate)

Was early warning given

ü Yes

Signed

(contractor)

Date

2020.05.18

To the contractor

Yes

Reasons attached

The above is a compensation event

Quotation required

Signed

(contractor)

Date

2020.05.18

Issued to

Contractor

Project manager

ü D

Supervisor

File

Other

2. Compensation event for alto flooring

Notification of a compensation event - contractor

Project number

< to be filled>

Project title

< to be filled>

Project manager

< to be filled>

Location

< to be filled>

Employer

Hometown council

Contractor

Duck construction uk ltd

Contract

< to be filled>

Notification of a compensation event from the contractor

Nce no.

Nec/dck/002

To the project manager

The following event is likely to occur on

Date

2020 May 14

ü The following event occurred on

Time

10:00 am

Tick box as appropriate

Compensation event

Ecc clause 60.1 ( )

Ecc clauses

60.

Details of the event

The project manager was informed about the issues in services delivered for non-slip Altro flooring that has been extended.

The compensation event is likely to have/affects on:

Yes

The prices

The completion date

We first became aware of the event on

Date

2020 May 14

Time

10:00 am

(tick box as appropriate)

Was early warning given

ü Yes

Signed

(contractor)

Date

2020.05.18

To the contractor

Yes

Reasons attached

The above is a compensation event

Quotation required

Signed

(contractor)

Date

2020.05.18

Issued to

Contractor

Project manager

ü D

Supervisor

File

Other

3. Compensation event for COVID 19 pandemic

Notification of a compensation event - contractor

Project number

< to be filled>

Project title

< to be filled>

Project manager

< to be filled>

Location

< to be filled>

Employer

Hometown council

Contractor

Duck construction uk ltd

Contract

< to be filled>

Notification of a compensation event from the contractor

Nce no.

Nec/dck/003

To the project manager

The following event is likely to occur on

Date

2020 Feb 10

ü The following event occurred on

Time

10:00 am

Tick box as appropriate

Compensation event

Ecc clause 60.1 ( )

Ecc clauses

60.

Details of the event

Current conditions of lockdown imposed by the UK government due to COVID-19 can largely affect the contract and project between both parties.

The compensation event is likely to have/affects on:

Yes

The prices

The completion date

We first became aware of the event on

Date

2020 May 14

Time

10:00 am

(tick box as appropriate)

Was early warning given

ü Yes

Signed

(contractor)

Date

2020.02.18

To the contractor

Yes

Reasons attached

The above is a compensation event

Quotation required

Signed

(contractor)

Date

2020.05.18

Issued to

Contractor

Project manager

ü D

Supervisor

File

Other

Answer for c

There are different issues faced by construction projects and sometimes, the projects suffer from the delays due to variety of reasons. The impact of delay could be on the cost of services and the working condition of the project. Based on the present analysis of the case study that is dealing with the contract between JCT and NEC the possible delay in the services is because the government of the UK imposed lockdown conditions. The analysis identified that lockdown will induce financial impact on the project (Hughjames. com, 2020).

Excusable and non-excusable delays

There are two possible types of delay in the project including excusable delays and non-excusable delays. In the case of a contract between jct and NEC, the delay is not due to the fault of the contractor. In actual it is due to an unforeseen issue that could not forecast before binding the contract. Covid-19 spread suddenly and induced impact on the delivery of services. The time extension is still owed by the management and contractor company. The contract's terms and conditions mentioned in the contract are critical but delay issues can be tackled properly (Albano, Calzolari, Dini, & Iossa, 2007).

Compensable and non-compensable delays

The issue of delay is increasing therefore, the management is required to reconsider the possible services and how it could be delivered to the client company. The compensable delays could result as loss in terms of finances. The non-compensable delays are due to the time extension and it will not ruin the product and services (Albano, Calzolari, Dini, & Iossa, 2007). In the present condition, the delay will cost a company as loss and it could be covered in the next coming years by increasing delivery services. There are less possible chances to reduce the delay from 5 weeks to less. The time extension could be granted by the company bound in the contract. Still, there is no possible compensation rather than financial cost issues (Ziaconsulting. com, 2019).

References of Contract Management

Albano, G. L., Calzolari, G., Dini, F., & Iossa, E. (2007). Procurement Contracting Strategies. Procurement Contracting Strategies, 01(10), 01-10.

Andersen, M., & Warner, M. (2016). Drafting and Negotiating Commercial Contract. Bloomsbury Additional texts.

Hugh James. com. (2020). JCT vs. NEC - 10 Key Differences. Retrieved from www.hughjames.com: https://www.hughjames.com/blog/jct-vs-nec-10-key-differences

Neccontract. com. (2020). A COMPARISON OF NEC AND JCT. Retrieved from www.neccontract.com: https://www.neccontract.com/getmedia/3d1b7c3f-097d-4504-8b1f-5a944dbc19dc/A-comparison-of-NEC-and-JCT.pdf.aspx

Tan, Lian Kiang, Goh, Shao Hung. (2017). A Price Review Framework for Maintenance, Repair and Operations Procurement Contracts in the Public Sector. In Global Public Procurement Theories and Practices (pp. 173-198). Springer International Publishing.

Ziaconsulting. com. (2019). CONTRACTS MANAGEMENT FOR CORPORATE LEGAL. Retrieved from www.ziaconsulting.com: https://www.ziaconsulting.com/contracts-management-case-study/