A problem has occurred on a NEC$3,$ ECC Option C contract for a sports stadium at the former Kai Tak airport. The Works Information stated that all works are to be designed by the Contractor except the steelwork which will be designed by the Employer. A debate has ensued over the detailed fixing drawings for the steel. The Contractor believes that these should be prepared by the Employer. The Employer states that these are always designed by the Contractor. The team have reached a deadlock.

$($a$)$As a newly appointed Project Manager you have just taken over the project? How should this be dealt with? Who is contractually responsible for producing the detailed fixing drawings? $(16\%)$

A few months later you spot an issue in the Works Information for the Contractor$$s design. This design includes an automatic sprinkler system for the pitch, to be provided by a Subcontractor. However, the Works Information provided by the Employer states that a manual sprinkler system should be provided.

$($b$)$As Project Manager, what process would you instigate in order to resolve this? The Employer wants the automatic system $$ who should pay for this? How does this scenario affect the Prices and Defined Cost? $(24\%)$

The Supervisor on the project is very particular about the type of coffee to be provided in the site office. They convince you that an expensive coffee machine should be provided by the Contractor together with an allowance of $300$ coffee pods per month to be used in the machine.

$($c$)$ How would you arrange for the Contractor to do this? How would the Contractor be reimbursed for the cost it incurs? $(24\%)$

$($d$)$You discover through inspecting the Contractor$$s accounts and records that the Contractor$$s planner has been charged full time to the project. However, $4$ out of $5$ days a week are spent by the planner at the Contractor$$s head office. How does the contract deal with this and what should be paid in respect of the planner$$s work? $(16\%)$

In Contract Data Part Two, the Contractor included a direct fee percentage of $11$ percent but left the subcontracted fee percentage blank. You speak to the Contractor about this and you are told that, based on the original Works Information, the Contractor did not intend to subcontract much work. However, based on subsequent compensation events there is now a need to subcontract a lot more work and the Contractor wants to negotiate a subcontracted fee percentage. You are told, verbally, that $$in a spirit of mutual trust and co$-$operation$$ you should agree something.

$($e$)$What does the contract state about such a scenario? Are you able, as Project Manager, to change the Contract Data? How might this be resolved and how should this be recorded? $(20\%)$