Q&As

In NEC4 Option A, if a contractor terminated the contract by clause 91.6 due to a default by the client (R19), the contractor is entitled to amount A1 in the Termination Table of clause 90.2. By clause 93.1, amount A1 includes ‘other defined cost reasonably incurred in expectation of completing the whole of the works’. Does this third bullet point apply only to work in the Activity Schedule or does this also entitle the contractor to payment for ANY work reasonably carried out (ie including additional work carried out outside of the scope for which no CE was raised)?

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Produced in partnership with Ryan Turner of Atkin Chambers

Published on: 20 June 2024

Under the NEC4 conditions, as set out in the LexisNexis Manual of Construction Agreements, defined cost is composed of two elements:

•
the cost of components in the Short Schedule of Cost Components, the rates for which are stated in Part 2 of the Contract Data. These are rates for categories of personnel, equipment, labour employed in off-site manufacture or off-site fabrication and design staff (see clause 11.2(23) of NEC4 Option A)
•
other amounts at open market

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Ryan Turner

Atkin Chambers

Called to the Bar in 2016, Ryan previously worked as a paralegal at regional and global law firms in corporate and private client departments. He has also acted as an advocate for the Communities Empowerment Network, representing secondary school pupils at risk of permanent exclusion.

Ryan presently takes instructions in all of Chambers' practice areas, including commercial, property and personal injury disputes. He regularly appears in the County Court in trials and interlocutory applications and has an active court-based practice.

Ryan has been involved in several disputes arising out of large national and international infrastructure projects. He is familiar with a broad range of standard form and bespoke contracts used for such projects, including the JCT, NEC and FIDIC forms. Ryan also has experience in claims brought by or against the National House Building Council, the market-leading insurer and warranty provider for new-build and refurbished properties in the UK.