Frequently Asked Questions

We are the project manager preparing an NEC4 Engineering and Construction Contract (ECC) Option A (priced contract with activity schedule). Our project includes a new lift. It is likely that the lift supplier will require a series of payments from the main contractor − deposit, materials, manufacture, installation. Is there any provision within the contract that allows the client to pay once manufacturing is complete and the lift car and components are ready for delivery?

That will depend upon what the activity schedule states. The activity schedule normally will be provided by the contractor, see the entry in contract data part two, ‘The activity schedule is...’. It will need an activity for each of payment stages the lift manufacturer wants paying.

However, most clients will only pay when it has been manufactured and ready for delivery, so you may insist at tender stage that there is only one activity in that case.

You will also need to look at clauses 70 and 71 of the contract as that sets out to try to protect the client by them claiming title to the goods involved. However, that can only work to the extent that the contractor has the right to title. In this case you may need to get some legal advice as to what to put in the scope as to how the contractor prepares the goods for marking (see clause 71.1). Once that has been done, the supervisor then marks the goods as for your contract. Again, you may need to get some legal advice on how that should be done.

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