What does NEC4 clause 60.1(5) mean?
It is a compensation event when your main contractor or others on site miss their programme times, break the Scope's conditions, or do unmentioned work there.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
The answer
The clause protects you from people you do not control. It has three separate limbs. The first is not working within the times shown on the Accepted Programme. The second is not working within the conditions the Scope states. The third is doing work on the Site that the Scope does not mention. In the NEC4 main contract the people are the Client or Others. Others means anyone who is not a party, the Project Manager, the Supervisor, the Adjudicator, or one of your own suppliers or subcontractors. On a subcontract, read the Client as your main contractor. Others then includes its other trades, a utility company or the end client's own fit-out firm. The first limb needs an Accepted Programme showing when those others were to work. So your programme must plot their activities, not just yours. The second needs the Scope to state their conditions, such as working hours, sequence or areas. The third needs evidence of the work done, and that the Scope did not mention it. Notify under clause 61.3 within 8 weeks of becoming aware of the interference. The change to the Prices, your contract price, is assessed under clause 63.1. It is the effect on actual Defined Cost up to the notification and forecast Defined Cost after it, plus the Fee. That is most often disruption, return visits, protection and standing time. Two things go wrong most. The programme shows the others' work as a note, not as dated activities. Or the interference goes in the site diary but is not notified until the next application, by when the 8 weeks have gone. Any delay to the Completion Date is assessed separately under clause 63, and that is a job for your planner.
Example
Illustrative example. The scenario and figures are invented.
The facts
A flooring subcontractor is to lay resin flooring on the second floor in the period on the Accepted Programme. The programme shows the end client's furniture installer clearing the floor before the resin gang arrives. The installer is still working there 6 days into the resin period.
What happens
- The gang lays what it can, comes back to finish, and grinds and re-primes a strip spoiled by the installer's fixings.
- The subcontractor notifies the event under clause 61.3 on the first day of the overlap, and records the installer's presence with dated photographs.
- The quotation assesses the return visit and standing time at £3,660, and the extra grinding plant and materials at £720. That is a change in Defined Cost of £4,380, under clause 63.1.
- A fee percentage of 15 per cent gives a Fee of £657.
The quotation in figures
| Item | Amount |
|---|---|
| Additional labour for the return visit and standing time | £3,660 |
| Extra grinding plant and materials | £720 |
| Change in Defined Cost | £4,380 |
| Fee at 15 per cent | £657 |
| Proposed change to the Prices | £5,037 |
The outcome
The proposed change to the Prices is £5,037: the £4,380 change in Defined Cost plus the £657 Fee.
To have events like this logged the day they land and notified inside their period, see our Compensation Event Loss Prevention service.