Please notice that this is NEC 4 Contract question, not NEC 3 contract,

Please give long answer to the following each question (a, b, c, d, e) including more relevant clause references and detailed explanation.

Question

The ECC Option A is being used for a new office building and associated car park. Secondary Options X7, X16 and X18 incorporated. Any response referring to dispute resolution should identify whether Option W1, W2 or W3 applies as an assumption.

The design for the office building has been submitted by theContractorand accepted by theProject Manager. TheContractorhas not proceeded with the relevant work yet. However, the design does not comply with the building legislation current at the Contract Date. TheContractoris stating that, as the design has been accepted by theProject Manager, that changing the design would be a compensation event.

a. Who is liable for this and how should it be dealt with?

[7 marks]

Part of the newly installed car park is flooding and theSupervisorsuspects that the drainage has been incorrectly installed. TheContractoris insistent that the work was undertaken in accordance with theClient'sdesign.

b. What powers does theSupervisorhave in this situation and can theContractorrefuse to respond?

[3 marks]

It is subsequently found that the drainage pipes are too narrow and larger drains should have been installed. TheContractorhad undertaken the work in accordance with theClient'sdesign.

c. How should the additional work be instructed and is this a compensation event?

[6 marks]

Assume instead that the drainage problem was actually a Defect caused by theContractor. TheClient'schief executive attends a routine progress meeting on Site and discovers the car park problem. As theClient'sstaff will use this part of the car park infrequently theClientis willing to allow the drainage to remain as it is and for the Defect to remain.

d. What is the process that needs to be followed and how should it be assessed?

[4 marks]

Towards the end of the project relationships become strained. TheClientis late in making payments and compensation events are not being processed by theProject Manager. A further Defect is found in the fire alarm systems. This is notified to theContractorby theSupervisor1 week after Completion, but theContractoris refusing to correct it.

e. Is theContractorright to ignore this notification? If the Defect is not corrected within itsdefect correction period,what should theProject Managerdo?

[5 marks]