Fennick Elliott Webinar: NEC Accepted Programs

Speaker: Jeremy Glover Panelists: Scott Jardine, Claire King, Mark Pantry

Introduction

• Purpose: Discuss how to avoid common disputes and pitfalls in NEC accepted programs
• Panelists:
  • Scott Jardine: Chartered Civil Engineer, Senior Managing Director at Ankura, recognized as a Global Leader in 2022
  • Claire King: Partner at Fennick Elliott, part of the Adjudication Society Committee
  • Mark Pantry: Senior Associate at Fennick Elliott, specialist knowledge in contracts
• Audience Interaction: Everyone is on mute, but questions can be submitted, and slides will be available on the website

Overview of NEC Accepted Programs

• Purpose: To provide a practical guide from both legal and programming perspectives
• Accepted Program: Definition and Importance
• Contractual Framework: Focus on the ethos of the NEC contract
• Topics Covered:
  • Purpose of Accepted Programs
  • Setup requirements
  • Amendments and subcontractor flow-down
  • Keeping the program updated
  • Addressing breakdowns in the system

Key Points on Accepted Programs

Purpose and Fit into NEC Contracts

• NEC Philosophy: Mutual trust and cooperation, collaborative working, early problem identification, proactive resolution
• Issues Resolution: Resolve issues as work progresses, prospective assessment rather than retrospective
• Project Management Tool: To show timelines, required actions, and consequences of non-adherence
• Specific Examples: Client access, non-provision issues, critical path delays, etc.
• Importance of Accurate and Up-to-Date Programs: Simplifies the assessment of compensation events and avoids end-of-job disputes

Accepted Programs Requirements

• NEC Procedures: Collaboration and clear language
• Typical Amendments: Changes based on project requirements, software usage, and subcontractor compliance
• Importance of First Program: Sets a baseline for future assessments, must be realistic
• Accepted Program Submission: Due within a specified period or identified in contract data
• Assessment Process: Smooth integration of activities and responsibilities
• Time Risk Allowance: Must be clearly defined
• Calendar Descriptions: Important for planning and time risk adjustments

Practical Aspects and Common Issues

Setting it Up

• Statement of Work: Explaining program details, resources, risks, and calendars
• Key Dates: Start date, planned and project completion dates, interim milestones
• Revisions: Monthly updates typically required, capturing progress, and reflecting changes
• Subcontractors: Ensure they understand and comply with NEC processes, provide complete information
• Dealing with Issues: Address them early, maintain records and progress updates
• Avoid Rejections: Keep submitting accurate programs even if repeatedly rejected
• Escalation: Use contractual mechanisms and potentially adjudication if necessary

Overcoming Breakdown and Disputes

• Maintaining Trust: Accurate updates, detailed records, and confronting time risk allowances
• Handling Delays: Whether they impact critical paths, compensation events, dealing with concurrent delays, and project manager assessments
• Erroneous Rejections: Be persistent but practical, realistic timelines
• Legal Recourse: Escalate when necessary

End of Job Processes

• Prospective vs. Retrospective Analysis: Balance theoretical and actual outcomes
• Necessity of Accurate Records: They support claims and aid in legal standings
• Resolution and Settlement: Push for dispute resolutions during the job to avoid end-of-job issues
• Client Communication: Essential for smooth program execution

Summary and Questions

• Adherence to Deadlines: Avoid slippage, ensure everyone is aligned
• Program Accuracy: Continual updates, diligent record-keeping
• Dealing with Issues: Early identification and resolution
• Collaborative Approach: Regular meetings, communication, process adherence

Next Webinar: Thursday, 23rd June - Focus on Expert Evidence