Comparison of ECC with ICE Conditions of Contract While both the ECC and ICE Conditions of Contract are

produced by the Institution of Civil Engineers, they are like comparing chalk with cheese. There are some similarities but essentially they are fundamentally different contracts We start with some of the more basic questions asked by potential ECC users, following on in the next issue with some more advanced queries.

Type of project Question On what type of project could we use ECC? Answer The ICE Conditions are for use in connection with works of civil engineering construction , the ECC is for any work which could be defined as engineering and/or construction and thus embraces civil engineering, building, process and all allied industries.

Use of engineers Question Is it true that we do not have an engineer under the ECC? Answer Of course ECC uses engineers, their role being dependent on the type of project, but ECC does not name an engineer who takes design responsibility and also administers the contract. This is a principle difference from the ICE Conditions. On an ECC project the employer will appoint the following parties. Project manager appointed by the employer, either from its own staff, or from an outside body. The project manager s role is to manage the contract for the employer to achieve the employer s objectives for the completed project. The project manager may be an engineer, architect, quantity surveyor or any other discipline dependent on the type of project and the employer s preference, but in all cases it must be someone who has sufficient knowledge of the contract and the role of the project manager to be able properly to carry out that role. This is an important point as some project managers do not have that knowledge and subsequently have stated that they felt that ECC was not that different from other contracts and left the parties with the same problems as ICE contracts. Supervisor appointed by the employer for a particular contract. Again, the supervisor can be either from the employer s own staff, or from an outside body. Essentially, the supervisor s role is to check that the works are carried out in accordance with the contract. This role can be likened to that of a clerk of works or resident engineer in other contracts.

Design and construct Question Is there a design and construct version of the ECC? Answer Under the ICE Conditions of Contract the liability of the contractor is subject to the important qualification that it is generally not liable for the design or specification of the permanent works or of temporary works designed by the engineer. Therefore a division of responsibility is maintained such that the contractor undertakes to construct according to the engineer s design. Under the ECC any or all of the design responsibility, and ultimately the liability for that design, can be apportioned to the contractor through the works information; there is no separate contract document to cover design and construct contracts.

Programmes Question I have heard that the programme requirement is more onerous under an ECC contract? Answer I am not sure that onerous is the right word for something that is designed to help the parties to manage their projects better! The ICE Conditions state the works commencement date and the time for completion and, under clause 14, the Contractor shall submit to the Engineer for his acceptance a programme showing the order in which he proposes to carry out the Works , the submission of a programme is an express requirement with set time scales for submission and acceptance/rejection of the programme and revisions. The general position is that the contractor has an obligation to complete the works within the time stated in the contract, and it is up to the contractor to arrange its operations to achieve this result. Under the ECC, the preparation, submission and acceptance of the contractor s programme are key elements of managing the contract as well as reporting progress. Provision is made for a programme either to be identified by the contractor in the contract data part two at the contract date or to be submitted by the contractor within a period stated in the contract data part one. The programme is an important document for administering the contract. It enables progress to be monitored and the time effects of compensation events to be assessed, including changes to the completion date. Any programme submitted for acceptance is required to show: dates which are stated in the contract data or the works information (e.g. starting date, possession date and completion date) a method statement for each operation which identifies the equipment and other resources which the contractor plans to use order and timing of operations float and, separately, time risk allowances health and safety requirements dates when the contractor requires information, facilities, access and so on to be provided to it by the employer other information required in the works information. Within two weeks of the contractor submitting a programme, or a revised programme, the project manager either accepts it or notifies the contractor of reasons for not accepting it. The contractor is then required to submit revised programmes showing the actual progress achieved on each operation and its effect on remaining work, the reprogramming of future operations, the effect of implemented compensation events and early warning matters, and how the contractor intends to deal with any delays. If a compensation event affects the timing of future operations, a revised programme indicating the effects is to be submitted as part of the contractor's quotation (clause 62.2).

Claims Question Do you have fewer claims under the ECC than under the ICE Conditions? Answer Yes, in fact there are no claims at all in the normal sense under the ECC as it deals with changes and their effects on price and programme in a different way to more traditional contacts. Firstly most traditional contracts price variations on the following basis: where additional or substituted work is similar, executed under similar conditions and does not significantly change the quantity of work set out in the contract bills, the rates and prices in the bills apply where the additional or substituted work is of similar character but is not executed under similar conditions and/or significantly changes the quantity of the work set out, bill rates and prices shall be the basis for determining the valuation where the additional or substituted work is not of similar character to work set out in the contract bills, fair rates and prices shall apply if the work cannot be measured, or is specifically instructed, daywork can be used for valuing the variation. There are separate provisions for extensions of time and loss and expense. Under the ECC, variations such as changes to the works information are compensation events and are assessed based on the forecast effect on actual cost (plus fee percentage) and any delay to the completion date. Any extension of time and/or loss of expense are therefore assessed within the compensation event that caused the delay and/or cost. Compensation events are priced and submitted by the contractor within three weeks of being instructed to do so, and the project manager responds within two weeks. The final account and any claims issues (ECC does not use the words final account or claim) are thus dealt with in a formal manner as the work progresses.