1. NEC超級精讀班
Dennis Li
- 塵世間一個迷途工程師

2. Background of NEC Development of nec
I was one of the few people to tried the new science of project management in engineering construction projects… I found that the (traditional) contract is not just something which is indifferent to effectiveness of project management; it is positively hindering good project management.
Background of NEC
Martin Barnes – Author of NEC

3. Use of nec in hong kong Having been in the construction industry in
Hong Kong for over 30 years I am determined
to change the prevailing adversarial attitude. My message to fellow engineers in the Asia-Pacific is just one word: 'collaboration'. I think the construction industry, not only in Hong Kong, but also right across the world needs collaboration among all the parties involved, in particular as projects get more and more complex and increasingly difficult to deal with.

4. Future of NEC in Hong Kong

5. History of NEC
The 1st NEC – then known as the “New Engineering Contract” – published by ICE in It was a radical departure from existing building and engineering contracts, being written in plain language and designed to stimulate good management.
The 2nd edition, called the NEC Engineering and Construction Contract, or ECC, appeared two years later.

6. History of NEC
NEC Contract Suite (3rd Edition) was launched in 2005 which included:
Engineering and Construction Contract (ECC)
Term Services Contract
Framework Contract
Professional Services Contract
Supply Contract
Subcontract
etc

7. Characteristics of NEC - Clarity
Black & Veatch
8 November November 2018
Characteristics of NEC - Clarity
Plain English and present tense are used in the contract language, e.g.
Cl The Employer and the Consultant give an early warning by notifying the other as soon as either becomes aware of any matter ….
Key contract specific information is contained in Contract Data and written in italics in the Contract. Defined terms have capital initials.
Cross-referencing of different clauses is minimized.

8. GCC
(1) The Engineer shall order any variation to any part of the Works that is necessary for the completion of the Works and shall have the power to order any variation that for any other reason shall in his opinion be desirable for or to achieve the satisfactory completion and functioning of the Works. Such variations may include:
(a) additions, omissions, substitutions, alterations, changes in quality, form, character, kind, position, dimension, level or line;
(b) changes to any sequence, method or timing of construction specified in the Contract; and
(c) changes to the Site or entrance to and exit from the Site.
(2) No variation shall be made by the Contractor without an order in writing by the Engineer. No variation shall in any way vitiate or invalidate the Contract but the value of all such variations shall be taken into account in ascertaining the Final Contract Sum.

9. NEC
The Project Manager gives an instruction changing the Works Information except
a change made in order to accept a Defect or
a change to the Works Information provided by the Contractor for his design which is made either at his request or to comply with other Works Information provided by the Employer.

10. Characteristics of NEC - Flexibility
Black & Veatch
8 November November 2018
Characteristics of NEC - Flexibility
A number of main options with different payment mechanisms e.g. lump sum, re- measurement, reimbursable;
A number of pre-set secondary options for project proponents to “pick and mix”.

11. Characteristics Contract has formal requirements to enhance management
Black & Veatch
8 November November 2018
Characteristics
Contract has formal requirements to enhance management
Partnering – Parties are expected to work collaboratively as part of the contract requirement
Early warning mechanism – either party is required to raise the early warning to the other if they are aware of any contractual matter arising
Time control – There are defined period for reply to drive communication and problem solving

12. Characteristics Contract has formal requirements to enhance management
Black & Veatch
8 November November 2018
Characteristics
Contract has formal requirements to enhance management
Programme management – There are detailed requirements on programme. Employer shall respond with either acceptance or non- acceptance with reasons provided.
Change management – Change is valued based on what reasonably costs the Contractor to carry out the unexpected scope of work. Therefore, he will not get a windfall or suffer dramatically because of a change.

13. NEC3 Contract

14. the Project Manager and Supervisor
Time
Project Manager’s
roles
Supervisor’s roles
Cost
Quality

15. NEC3 Contracts and Options
Engineering and Construction Contract (ECC)
6 main pricing option clauses are:
Option A: priced contract with activity schedule
Option B: priced contract with bill of quantities
Option C: target contract with activity schedule
Option D: target contract with bill of quantities
Option E: cost reimbursable contract
Option F: management contract

16. Secondary Option Clauses (optional)
Option X1 – Price adjustment for inflation
Option X2 – Changes in Law
Option X3 – Multiple currencies
Option X4 – Parent company guarantee
Option X5 – Sectional Completion
Option X6 – Bonus for early Completion
Option X7 – Delay Damages
Option X12 – Partnering
Option X13 – Performance Bond
Option X14 – Advanced payment to the Contractor
Option X15 – Limitation of Contractor’s liability for his design
Option X16 – Retention
Option X17 – Low Performance damages
Option X18 – Limitation of liability
Option X20 – Key Performance Indicators (not used with X12)
Usually Adopted in HKSAR Government NEC Contract
Usually not used in HKSAR Government NEC Contract but there is an ACC with similar effect

17. Option Z (The Z Clauses)
Used to incorporate bespoke clauses, i.e. security, Health and Safety etc; or
To amend the core and main option clauses.

18. Contract Data Part 1 Employer, Part 2 Contractor
Important that contract data fully completed , affects operation of the contract
Defines the details of the contract, identified by italics

19. Engineering Construction Contract
Main Options
Option A - Priced contract with activity schedule
Option B - Priced contract with Bills of Quantities
Option C – Target contract with activity schedule
Option D – Target contract with Bills of Quantities
Option E – Cost Reimbursable contract
Option F – Management contract

20. Example of Milestone Schedule of Payment in GCC

21. What’s the difference between NEC’s AS and GCC’s Cost Centre?

22. Example of Activity Schedule
Activities
Price ($)
Duration
Commencement
Activity 1
700,000
Activity 2
200,000
Activity 3
500,000
Activity 4
600,000
Activity 5
400,000
Completion Date
Float … …
Critical path leads to completion

23. BQ, SMM, GP & PP

24. Example of BQ – Water Mains Laying Works
Item
Description
Qty.
Unit
Rate (HK$)
Total Amount (HK$) 1
Excavation 50 m3
100
5,000 2
3 inch Galvanized Iron Pipe
1,000 m
300
300,000 3
5 inch Galvanized Iron Pipe
200
500
100,000 4
Trenchless Construction of 5 inch GIP 10 M
10,000 5
Connections Nr 6
Concrete 30
1000
30,000 7
Reinstatement m2
15,000
Total Sum
650,000

25. Example – Building Water Mains for Villagers
Item
Description
Qty.
Unit
Rate (HK$)
Total Amount (HK$) 1
Excavation 50 m3
100
5,000 2
3 inch Galvanized Iron Pipe
1,000 m
300
300,000 3
5 inch Galvanized Iron Pipe
200
500
100,000 4
Trenchless Construction of 5 inch GIP 10 M
10,000 5
Connections Nr 6
Concrete 30
1000
30,000 7
Reinstatement m2
15,000
Total Sum
650,000
Actual
47.5
1,220
140
8.5 4 50

26. Option C&D : PWDD – Clause 11.2 (23), (25), (29)
+ Other Amounts:
Release of Retention, PFSPMS, etc
PWDD
Defined Cost
+Payment to S/C
+ Cost Components in SoCC
- Disallowed Cost
Not justified by the accounts & records
Should not have been paid to S/C
Incur b/c C did not follow WI
Incur b/c C did not give an E/W
Correct Defects after Completion
Correct Defects b/c C does not comply with a constraint
Resources/ Plants/ Equip. not used to Provide the Works
Preparation for and conduct of an adjudication
Fee
(exclude MPF & expense on people)
Amount Due
- Other Amounts:
Retention, indemnity, delay damages, etc
- Interim assessment of pain share

27. Understanding Target Cost

28. Understanding Target Cost

29. How about this?

30. Understanding Target Cost
100% C’s share
For case of a share range of 50/50 share up to 110% of the Total of the Prices

31. Understanding Target Cost
Employer’s Share % 0%
50%

32. ECC – Option Analysis Option Payment Risk Allocation Remarks
A – Priced contract with Activity Schedule
Completed activity / group of completed
Price-based
Certainty of price depends on accuracy of design
B – Priced contract with Bill of Quantities
Actual work done based on quantity x rate
C – Target contract with Activity Schedule
Reimbursable of Defined Cost plus fee
Cost-based
Parties incentivized to drive down cost
D – Target contract with Bill of Quantities
E – Cost reimbursable contract
Profit is guaranteed
F – Management Contract
Hybrid of Cost and Price based.
Additional Quantity Risk
Similar to GCC
Additional Quantity Risk/ Overall project risk shared to a certain extent
Overall project risk shared to a certain extent
All risk borne by the Employer
Risks of the works borne by Employer

33. ECC – Option Analysis E, F - Reimbursable D – Target BoQ
Client’s risk and Flexibility
C – Target with Activity Schedule
B Priced with BoQ
A Priced with Activity Schedule
Contractor’s incentive and Risk

34. NEC – Options Analysis
Activity Schedule Type – Less effort at Design Stage because no BQ is needed
Target Cost Type – Risks are being shared between the Employer and Contractor incentivize the two to work together towards the target cost
Price-based Contract – More cost certainty and risks are transferred to the Contractor
But in all case, compensation events are supposed to be based on market prices, not tender prices, unless there is agreement!

35. EARLY WARNINGS (Clause 16)
Why give them?
Increase the total of the Prices
Delay Completion
Impair the performance of the works in use
Promotes proactive management and minimises risk
Who gives them?
Either the Contractor or PM, depending upon who becomes aware of the matter first.

36. EARLY WARNINGS (Clause 16)
What to do after the EWN?
Risk is entered into the Risk Register
Either the Project Manager or the Contractor may instruct the other to attend the risk reduction meeting
Discussion will be held and decision made to resolve the risks
Actions will be recorded in the risk register
If a decision involves change to the Works Information, the Project Manager instructs the change and issue a compensation event if necessary

37. SANCTIONS – early warnings
What if the Contractor did not give an early warning which an experienced Contractor could have given?
Effect on the Prices (Target) & on Completion
Clause 63.4
Assess the CE ‘as if an EW had been given’
Amounts (money and time) that could have been avoided or reduced will not be included in the assessment of the compensation event.

38. SANCTIONS – early warnings
Effect on Actual Cost
Clause 11.2 (30) – Disallowed Cost (Option C)
Cost is disallowed if the PM decides
Was incurred only because the Contractor did not give an early warning which he could have given.
Q: As no EWN is necessary for matters that could increase cost, which cost could be disallowed?
A: Cost unnecessarily incurred which could have been avoided. i.e. For ONLY those matters which an early warning is required to be given.

39. What if the PM did not give an early warning which he could have given?

40. 1st Exercise– early warnings Are early warning notices required is the following situations, and if so who should issue it, why should it be given and what steps / actions should follow Q
Scenario
EWN
Y/N
Issue By
Why
Next Step 1
PM is aware that the WI contains an error and that a PMI is needed to change the WI 2
An item of the Contractor’s owned Equipment intended for use on the project is unavailable and alternative Equipment will need to be hired in at a premium rate – so increasing the overall cost. 3
Contractor has knowingly installed Plant which does not meet the Specification in the WI 4
Contractor is experiencing major financial difficulties and is considering voluntary administration.

41. EXERCISE 1 – early warnings Are early warning notices required is the following situations, and if so who should issue it, why should it be given and what steps / actions should follow Q
Scenario
EWN
Y/N
Issue By
Why
Next Step 1
PM is aware that the WI contains an error and that a PMI is needed to change the WI
Yes PM
Could increase Prices or delay Completion etc
Issue PMI and CEN and request Quotation 2
An item of the Contractor’s owned Equipment intended for use on the project is unavailable and alternative Equipment will need to be hired in at a premium rate – so increasing the overall cost.
No *
n/a - * unless this could delay Completion 3
Contractor has knowingly installed Plant which does not meet the Specification in the WI C
May impair the performance of the works & delay Completion
Also a Defect – C to correct (Cl.43.1) 4
Contractor is experiencing major financial difficulties and is considering voluntary administration.
Delay Completion
Consider alternative Contractors & termination (Cl.94.2)

42. 4th Question– early warnings (10 marks)
LSP Builders place concrete to a new ground slab which on completion of the final pour it realises that the laboratory did not carry out the testing according to the contract standards.
The ground slab sits on the critical path of the approved programme. When cured, LSP continues to build blockwork walls off of the concrete slab.
The PM then becomes aware of the incorrect testing results and instructs the Contractor to take down the walls , break up the slab, and undertake the work to the correct specification.

43. 4th Questions – early warnings
Under Option C, what is the position with regards to:-
The Prices & the Completion Date
Will the Prices .....
increase
decrease
not change
Will the rectification work cause a delay
yes no
Is LSP entitled to an extension of time
Does the rectification work constitute a CE
Actual Cost
Should LSP be paid for:-
the initial concrete slab
yes no
the initial block walls
The demolition of the block walls
The demolition of the concrete slab
The rectification work in replacing the slab
The rectification work in replacing the walls

44. 4th Questions – early warnings (10 marks)
Under Option C, what is the position with regards to:-
The Prices & the Completion Date
Answer
Reason
Will the Prices .....
Will the rectification work cause a delay
Is LSP entitled to an extension of time
Does the rectification work constitute a CE
no change
Not a compensation event
yes
As it is on the critical path no
Not a compensation event no
Not a compensation event
Actual Cost
Answer
Reason
Should LSP be paid for:-
the initial concrete slab
the initial block walls
The demolition of the block walls
The demolition of the concrete slab
The rectification work in replacing the slab
The rectification work in replacing the walls
yes
Albeit defective, the work was done before completion, and before knowledge of the Defect no
If an EWN had been served the cost could have been avoided no
If an EWN had been served the cost could have been avoided
yes
Risk of Defects prior to Completion are shared. Thus Prices unchanged but paid as AC
yes
As above
yes
The walls will need to paid for once, as always envisaged.

45. Risk Register
11.2(14) The Risk Register is a register of the risks which are listed in the Contract Data and the risks which the Project Manager or the Contractor has notified as an early warning matter. It includes a description of the risk and a description of the actions which are to be taken to avoid or reduce the risks.

46. Risk Register - Example

47. Compensation Events (CE)
NEC Compensation Events are like traditional variations and claims in traditional GCC
The fundamental difference is that CE is valued based on the principle that the Contractor will not better or worse off due to the compensation event.

48. Compensation Events (CE)
One regime for claims for time and money Examples of Clause 60.1 CE’s
PM’s instruction to change to Work Information
Failure to give possession
Failure to work within times (Others)
Weather events
Clause 61: PM or Contractor to notify (note NEC3 8 week period)
Clause 62: Quotations
Clause 63: Assessment

49. QUOTATIONS FOR COMPENSATION EVENTS
27 January 2011
B&V
QUOTATIONS FOR COMPENSATION EVENTS
The Project Manager has to instruct the Contractor to submit quotations for all compensation events
Quotation for compensation events proposes changes to the Prices and Completion Date assessed by the Contractor

50. NOTIFICATION PROCESS The PM The Contractor Notes
Instruction issued (Cl. 61.1)
CE Notified (Cl. 61.3)
CE must be notified before the defects date (Cl.61.7)
CE Notified
C notify CE within 8 weeks of the event. (Cl.61.3)
Quotation Requested (Cl or 61.4)
PM replies within 1 week and may instructs C to submit quotation unless the event is the C’s fault … etc (Cl.61.4)
Gives notice if no EWN was issued (Cl.61.5)
3 weeks
Quotation(s) Submitted
(Cl. 62.3)
PM may make assumptions (Cl.61.6)
Quotation accepted, or revision instructed or PM assesses (Cl.62.3)
PM must give reasons for requesting a revised quotation
(Cl.62.4)
2 weeks
See Notes on Assessing CEs

51. CE - QUOTATION & ASSESSMENT
The Assessment
Changes to Prices - consider the effect of the CE upon
The actual Defined Cost of the work already done
The forecast Defined Cost of the work not yet done
The resulting Fee
Delay to Completion Date
the delay on planned Completion caused by the CE.
Contractor’s cost and time risks included
that have a significant chance of occurring are included.
Basis of Assessment
Contractor reacts competently and promptly to the CE; additional cost and time that are reasonably incurred & the Accepted Programme can be changed.
Assessed as if Contractor had given an EWN
The PM assesses a CE in certain circumstances (Cl & 2)
PM implements the CE and notifies the Contractor of the changes to the Prices and the Completion Date.

52. Compensation Events - Sanctions
Time Bar
Contractor notification tests – 8 week time bar
Default Acceptances
61.4 Default acceptance of compensation event if no response from the Project Manager within the correct timescales (1 week + 2 weeks)
62.6 Default acceptance of quotation if no response from the Project Manger within the correct timescales (2 weeks + 2 weeks)

53. What if the C does not provide the quotation/ revised quotations within 3 weeks?

54. PM’s assessments (Cl. 64.1) The PM assesses a compensation event
If the C has not submitted a quotation … within the time allowed
If the PM decides that the C has not assessed the compensation event correctly …
If C submits the quotation without a programme which this contract requires him to submit; or
If, when the C submits the quotations, the PM has not accepted the C’s latest programme

55. DEFINED COST (52.1) Principle – Defined Cost includes only
27 January 2011
B&V
DEFINED COST (52.1)
Principle – Defined Cost includes only
amounts calculated using rates and percentages stated in the Contract Data and
other amounts at open market or competitively tendered prices with
deductions for all discounts, rebates and taxes which can be recovered

56. Quotation for CE: Build-up from People, Equipment, Plant and Materials …? Or by quotations of Subcontractors?

57. DEFINED COST Defined Cost under Options A & B is (Cl. 1.2(22)):
27 January 2011
B&V
DEFINED COST
Defined Cost under Options A & B is (Cl. 1.2(22)):
The cost of the components in the Shorter Schedule of Cost Components whether work is subcontracted or not excluding the cost of preparing quotations for CEs
Less Disallowed Cost.
But in some HK NEC Contract, S/C’s quotations can also be used.
Defined Cost under Options C & D is the same as what used for Payment. If PM and C agree, the SSCC can be used for assessment.

58. Assessing compensation events
Assessment of the effect of a compensation events includes risk allowance for cost and time for matters which have a significant chance of occurring and are at the C’s risk under the contract (Cl. 63.6)
The assessment of a compensation event is not revised if a forecast upon which it is based is shown by later recorded information to have been wrong (Cl. 65.2)

59. Discussion – Addition of Works
Can the price stated under the Activity Schedule/ BQ be adopted as a basis for valuing additional works?

60. Discussion – Addition of Works
The valuation should be based upon what it will cost the Contractor to do, called Defined Cost (Cl ). 
The amount added is not based upon what the Contractor has in the Activity Schedule for the additional works.
However, if the PM and the C agree, rates and lump sums may be used to assess a compensation event. (Cl ) 

61. Discussion – Review of Project Manager’s Assessment
For a instruction issued by the Project Manager which is considered as a compensation event, the Project Manager has provided his own assessment after rejecting the Contractor’s quotation.
Can the Contractor reject the Project Manager’s assessment and provide a revised quotation? Or can the Contractor refuse to carry out the instruction unless the price is agreed?

62. Discussion – Review of Project Manager’s Assessment
The Contractor is obliged to put that instruction into effect and cannot “consent” to anything other than that (Cl. 14.3, 27.3 and 61.1).  In other words the Contractor cannot refuse to do the work until the price has been agreed.   
Once the Project Manager has notified the Contractor of his assessment then the compensation event is implemented (Cl. 65.1) and that is the end of the matter (Cl. 65.2).  If the Contractor is not happy he can only go to the Adjudicator. 

63. Discussion – Staff Cost in Compensation Event
The C employs a number of full time management staff (QS, construction manager, etc) on site on fixed salary without OT. On preparing the quotation of a compensation event, the C includes 1) the costs of these staff on preparing the quotation and 2) management the new workload. Can he do that?
Can PM argue that these costs shall not be included in the quotation because the staff are there anyway regardless of the CE?

64. Discussion – Staff Cost in Compensation Event
The Defined Cost is the cost of the components in the (Shorter) Schedule of Cost Components whether work is subcontracted or not excluding the cost of preparing quotations for CE.
Since, because of the CE, there is extra management work to be carried out by the staff and their costs falls within the definition of “People” in SSCC, the C is entitled to include their costs in the quotation.

65. Discussion – Determine the likely effect of variations
Can the PM do anything to determine the likely effect on the Prices and Completion Date of a change to the WI which he is considering but has not yet instructed. If so, what?

66. Discussion – Determine the likely effect of variations
Yes. The PM may instruct the Contractor to submit quotations for a proposed instruction pursuant to clause 61.2.

67. Discussion – CE Quotation Preparation and Assessment
There is a CE notified by the PM on the road re- construction work where design is changed due to latest comments from the DC members. It is a major part of the works and the C agrees that works will be proceeded during quotation preparation and assessment to avoid lengthening contract duration.
As works progresses, some of the risk allowance such as number of TTAs that was originally allowed in the quotation has been clarified, i.e. C allows for 4 TTA schemes in the original quotation, turns out the Police was lenient and allowed 3 longer TTA schemes.
Should the quotation be revised to include the price of 3 TTA schemes only?

68. Discussion – CE Quotation Preparation and Assessment
Cl The changes to the Prices are assessed as the effect of the compensation event upon
The actual Defined Cost of the work already done,
The forecast Defined Cost of the work not yet done and
The resulting Fee
(Cont’d) If the CE arose from the PM or the S giving an instruction, …., the date which divides the work already done from the work not yet done is the date of that communication. In all other cases, the date is the date of the notification of the CE.
However, in reality it is very difficult to resist the temptation of using actual cost.

69. 5th Questions – CEs & Assessments (5 marks + 5 marks)
In an Option C Contract, the Contractor has stated a price for 8 Nr specific DI couplings in the Activity Schedule as $800, i.e. $100 each . The Fee stated in the Contract Data Pt1 is 25%. The true market price to purchase such a coupling is currently $500. A PMI is issued which changes the type of couplings to ones which costs $600 each. Assuming this does not delay planned Completion, how is the CE assessed, and what is the change in the Prices? No work has started yet.
$1,000 to be added to the Price
$5,000 to be added to the Price
$6,000 to be added to the Price

70. 5th Questions – CEs & Assessments (5 marks + 5 marks)
Changes to the Prices are assessed as the effect of the CE upon the forecast Actual Cost. Therefore, the tender /AS prices etc are of no relevance. The FAC of the original couplings at the time of the CE = $500 x 8. The CE alters this to $600 x 8, being an additional $800 in total. Plus a Fee of 25% and the Prices are increased by $1,000.

71. 6th Question (5 marks + 5 marks)
What would be the valuation of variation order if this is under GCC?
The Contractor will gain extra $160 due to this change
The Contractor will gain extra $800 due to this change
The Contractor will gain extra $4,800 due to this change

72. GCC Clause 61
(1) The Engineer shall determine the sum which … shall be added to or deducted from the Contract Sum as a result of an order given … in accordance with the following principles:
(a) Any item of work omitted shall be valued at the rate set out in the Contract ….
(b) Any work … which is the same as or similar in character to … any item of work priced in the Contract shall be valued at the rate set out in the Contract …
(c) Any work carried out which is not the same as or similar in character to any item of work priced in the Contract shall be valued at a rate based on the rates in the Contract so far as may be reasonable, failing which, at a rate agreed between the Engineer and the Contractor.

73. 6th Question (5 marks + 5 marks)
What would be the valuation of variation order if this is under GCC?
Answer is A
The BQ rate is $100/nr. BQ rate is supposed to include overhead and profit already
The difference in market price of the item is ( )/500 = 20%. So the BQ rate should increase by 20% = $120/nr.
For 8 couplings, the additional gain = $20 x 8 =$160.

74. 7th Question (5 + 5 marks)
In Option B contract, the works include the construction of 10 manholes but the drawings only show 8. The Project Manager gives an instruction revising the construction drawings to add the 2 manholes back. These 2 manholes should be paid based on:
BQ rates upon re-measurement
Defined Cost
Depends on whether same or similar BQ rate is available in the Contract

75. 7th Question (5 + 5 marks)
In Option B contract, the works include the construction of 10 manholes but the drawings only show 8. The Project Manager gives an instruction revising the construction drawings to add the 2 manholes back. These 2 manholes should be paid based on B) Defined Cost
Drawing is part of the Works Information. To add 2 missing manholes in the drawing is a change of Works Information so it is a compensation event and its valuation should be based on Defined Cost.

76. 8th Question (5 + 5 marks)
In Option A Contract, if the Contractor mistakenly entered an activity in the Activity Schedule that is not related to the works, what should he do?
He cannot revise the Activity Schedule for this genuine mistake and will not be paid for the amount of that activity.
Revise the Activity Schedule by deleting the irrelevant activity, re-distribute the amount to other relevant activities and submit for Project Manager’s acceptance.
Apply for payment for that amount anyway at the time of completing all the works.

77. 8th Question (5 + 5 marks)
In Option A Contract, if the Contractor mistakenly entered an activity in the Activity Schedule that is not related to the works, what should he do?
He cannot revise the Activity Schedule for this genuine mistake and will not be paid for the amount of that activity.

78. Option A – Lump sum with Activity Schedule
Clause 11.2 (27) The Price for Work Done to Date is the total of the Prices for
Each group of completed activities and
Each completed activity which is not in a group
A completed activity is one which is without Defects which would either delay or be covered by immediately following work.

79. 9th Question (5 + 5 marks)
Which of the following situations will not change the Target Prices?
Project Manager instruct a change to the Works Information
Re-measurement of quantity in Option D
The Contractor proposes an alternative design to the construction of foundation and later accepted by the Project Manager.

80. 9th Question (5 + 5 marks)
Which of the following situations will not change the Target Prices?
The Contractor proposes an alternative design to the construction of foundation and later accepted by the Project Manager.
Cl The following are compensation events.
The Project Manager gives an instruction changing the Works Information except
a change made in order to accept a Defect or
a change to the Works Information provided by the Contractor for his design which is made either at his request or to comply with other Works Information provided by the Employer.

81. 10th Question (10 marks)
In a construction contract, the C has completed the works and the PM has certified completion. The works are handed over to the Government. The works are later found to be defective. Is the C liable for the defect?
Yes No
Depends on whether the defect liability period is over yet.

82. 10th Question (10 marks)
In a construction contract, the C has completed the works and the PM has certified completion. The works are handed over to the Government. The works are later found to be defective. Is the C liable for the defect?
Yes
Based on common law, C is always liable for the defect of the works. Nevertheless, it would be difficult to prove C’s liability upon commissioning. There is also a general limitation of 12 years to raise civil proceedings under the law.

83. 識玩Contract, 未唔會成日覺得比Contract玩 lor, 好似係…
Conclusion
識玩Contract, 未唔會成日覺得比Contract玩 lor, 好似係…
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