For use by HK Development Bureau, Works Departments and ICAC only unless otherwise agreed by NEC, UK

FLOW CHARTS FOR THE

Alliance Contract
An NEC document
June 2018

The Government Construction Board, Cabinet Office UK

The Government Construction Board (formerly Construction Clients’ Board) recommends
that public sector organisations use the NEC contracts and in particular the NEC4 contracts
where appropriate, when procuring construction. Standardising use of this comprehensive
suite of contracts should help to deliver efficiencies across the public sector and promote
behaviours in line with the principles of the Government Construction Strategy.

The Development Bureau, HKSAR Government

The Development Bureau recommends the progressive transition from NEC3 to NEC4 in public
works projects in Hong Kong. With suitable amendments to adapt to the Hong Kong local
environment, NEC4 is expected to further enhance collaborative partnering, unlock innovations
and achieve better cost management and value for money in public works projects.

For use by HK Development Bureau, Works Departments and ICAC only unless otherwise agreed by NEC, UK
 NEC is a division of Thomas Telford Ltd, which is a wholly owned subsidiary of the Institution
of Civil Engineers (ICE), the owner and developer of the NEC.

The NEC is a suite of standard contracts, each of which has these characteristics:

• Its use stimulates good management of the relationship between the two parties to the
contract and, hence, of the work included in the contract.

• It can be used in a wide variety of commercial situations, for a wide variety of types of
work and in any location.

• It is a clear and simple document – using language and a structure which are
straightforward and easily understood.

These are the Flow Charts for the NEC4 Alliance Contract.

ISBN (this document) 978-0-7277-6276-4 (e-only)

ISBN (Alliance Contract) 978-0-7277-6220-7
ISBN (Establishing a Procurement and Contract Strategy) 978-0-7277-6223-8
ISBN (Preparing an Alliance Contract) 978-0-7277-6233-7
ISBN (Selecting a Supplier) 978-0-7277-6234-4
ISBN (Managing an Alliance Contract) 978-0-7277-6244-3

First edition June 2018

British Library Cataloguing in Publication Data for this publication is available from the
British Library.

© Copyright nec 2018

All rights, including translation, reserved. The owner of this document may reproduce the
Contract Data and forms for the purpose of obtaining tenders, awarding and administering
contracts. Except as permitted by the Copyright, Designs and Patents Act 1988, no part of
this publication may be otherwise reproduced, stored in a retrieval system or transmitted in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise,
without the prior written permission of the NEC Director, Thomas Telford Ltd, One Great
George Street, Westminster, London SW1P 3AA.

Typeset by Manila Typesetting Company

For use by HK Development Bureau, Works Departments and ICAC only unless otherwise agreed by NEC, UK
 Contents

Contents

The number of each flow chart is the same as the number of the clause in the
NEC4 Alliance Contract to which it primarily relates.

Foreword v

Preface vii

Acknowledgements ix

Abbreviations used in the flow chart boxes 1

Legend 2

Flow Charts 3
13 Communications Sheets 1 to 3 3
14 The Client 6
15 Early warning 7
16 Requirements for instructions Sheets 1 and 2 8
17 Corrupt Acts 10
18 Prevention 11
20 The Alliance 12
21 The Alliance Board 13
22 The Alliance Manager 14
23 The Alliance’s design Sheets 1 and 2 15
24 People 17
25 Working with Others 18
26 Subcontracting 19
27 Other responsibilities 20
28 Disclosure 21
30 Starting and Completion 22
31 Revising the Implementation Plan 23
32 The programme 24
33 Revising the programme 25
34 Access to and use of the Site 26
35 Instructions to stop or not to start work 27
36 Take over 28
40 Quality management system 29
41 Tests and inspections 30
42 Searching for and notifying Defects 31
43 Correcting Defects Sheets 1 and 2 32
44 Accepting Defects 34
50 Assessing the amount due Sheets 1 to 4 35
51 Payment Sheets 1 and 2 39
52 Defined Cost 41
53 Performance measurements 42
54 Final assessment 43

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 CONTENTS

60 Compensation events Sheets 1 to 3 44

61 Notifying compensation events Sheets 1 to 3 47
62 Quotations for compensation events 50
63 Assessing compensation events 51
64 Implementing compensation events 52
70 The Client’s title to Plant and Materials 53
71 Marking Equipment, Plant and Materials outside 54
the Working Areas
72 Objects and materials within the Site 55
73 The Partners’ use of material 56
80 Client’s liabilities Sheets 1 and 2 57
81 Partners’ liabilities 59
82 Other liabilities 60
83 Recovery of costs 61
84 Insurance cover 62
85 Insurance by the Client 63
86 Insurance by Partners 64
87 Insurance policies 65
90 Termination 66
91 Reasons for termination Sheets 1 to 4 67
92 Procedures on termination 71
93 Payment on termination 72
94 No claims 73
95 Resolving and avoiding disputes 74
96 Independent expert 75
97 Senior Representatives 76
X2 Changes in the law 77
X4 Performance guarantee 78
X9 Transfer of rights 79
X10 Information modelling 80
X18 Limitation of liability 81
X22 Early Alliance Involvement 82
X26 Programme of work 83
Y(UK)1 Project Bank Account Sheets 1 to 3 84
Y(UK)2 The Housing Grants, Construction and
Regeneration Act 1996 87
Y(UK)3 The Contracts (Rights of Third Parties) Act 1999 88

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 Foreword

Foreword
Continuous improvement in project delivery is required to build confidence in the UK
construction sector so that we can attract more investment. The Infrastructure and Projects
Authority (IPA) is the government’s centre of expertise for infrastructure and major projects.
We sit at the heart of government, reporting to the Cabinet Office and HM Treasury.

The application of the right contract is central to the success of the overall project delivery
system. The NEC suite of contracts has been in existence for over the 20 years and has linked
the projects, people and processes together to create the correct environment for successful
delivery.

This new and updated NEC4 contract embraces the digital changes that are happening in the
construction industry, especially around BIM, which I believe will be central to creating a step
change in performance. Whilst looking forward it also builds on the fundamentals required
for an effective contract.

The use of NEC4 on public sector projects will help to deliver the Government Construction
Strategy as we seek to improve central government’s capability as a construction client to
deliver further savings in the order of £1.7bn across the Government estate. The IPA looks
forward to collaborating with industry to make the delivery of projects more efficient and
effective.

Tony Meggs, Chief Executive, Infrastructure and Projects Authority

Reporting to Cabinet Office

and HM Treasury

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For use by HK Development Bureau, Works Departments and ICAC only unless otherwise agreed by NEC, UK
 Preface

Preface
NEC was first published as a new and innovative way of managing construction contracts in
1993 – some 24 years ago. It was designed to facilitate and encourage good management of
risks and uncertainties, using clear and simple language.

The NEC approach to managing contracts was endorsed in “Constructing the team – The
Latham Report”, which was a government/industry review of procurement and contractual
arrangements in the UK construction industry. This led to a second edition in 1995
incorporating the further recommendations of that review. This contract was used increasingly
in the UK and overseas, and a major revision was made with the third edition in 2005.

NEC has played a part in helping the industry do things differently and better. It has done
so by introducing effective project management procedures into the contract itself. These
require pro-active management of risk and change, and the day-to-day use of an up-to-date
programme. The range of pricing options has given Clients flexibility in the allocation of risk
and the ability to share risk and manage it, collaboratively.

The NEC suite has evolved over three decades, embedding consultation responses and user
feedback, and reflecting industry development, including new procurement approaches and
management techniques such as alliances, management of information (BIM) and supply
chain engagement. This feedback and the new procurement approaches formed the driver
for the development of the next generation contracts and the launch of NEC4.

There were three key objectives in drafting NEC4:

• provide greater stimulus to good management

• support new approaches to procurement which improve contract management and

• inspire increased use of NEC in new markets and sectors.

It was to be evolution, not revolution.

Some features of NEC4 include:

• a new design build and operate contract to allow flexibility between construction and
operational requirements in timing and extent

• a new multi-party alliance contract based upon an integrated risk and reward model

• new forms of subcontract to improve integration of the supply chain.

Further enhancements include:

• finalising cost elements during the contract

• incorporating a party-led dispute avoidance process into the adjudication process

• increasing standardisation between contracts and

• providing enhanced guidance to give greater practical advice to users.

NEC has always been known for its innovative approach to contract management, and this
revision continues that approach. No other contract suite has had such a transformative effect
on the built environment industry as NEC. It has put the collaborative sharing of risk and
reward at the heart of modern procurement. It is also unique in providing a complete, back-to-
back procurement solution for all works, services and supplies in any sector and any country.

NEC4 continues to set the benchmark for best practice procurement worldwide.

Peter Higgins BSc (Hons), CEng, FICE

Chair of NEC4 Contract Board

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 Acknowledgements

Acknowledgements
The original NEC was designed and drafted by Dr Martin Barnes then of Coopers and
Lybrand with the assistance of Professor J. G. Perry then of the University of Birmingham,
T. W. Weddell then of Travers Morgan Management, T. H. Nicholson, Consultant to the
Institution of Civil Engineers, A. Norman then of the University of Manchester Institute of
Science and Technology and P. A. Baird, then Corporate Contracts Consultant, Eskom, South
Africa.

This fourth edition of the NEC suite was produced by the Institution of Civil Engineers
through its NEC4 Contract Board.

The NEC4 Contract Board is:

P. Higgins, BSc (Hons), CEng, FICE (Chair)

P. T. Cousins, BEng (Tech), DipArb, CEng, MICE, FCIArb
I. Heaphy, BSc (Hons), FRICS, FCIArb, MCInstCES, MACostE
J. N. Hughes-D’Aeth, BA (Hons), MA (Cantab)
S. Rowsell, BSc, CEng, FCIHT, FICE, MCIPS

The NEC4 Alliance Contract drafting team consisted of:

M. Garratt, BSc (Hons), MRICS, FCIArb

R. Gerrard, BSc (Hons), FRICS, FCIArb, FCInstCES
R. Hayes, BSc (Hons), MEng, CEng, MICE, MAPM
T. Knee-Robinson, BEng (Hons), CEng, MICE, MAPM, MCIHT

The Institution of Civil Engineers acknowledges the help in preparing the fourth edition
given by the NEC4 Contract Board and NEC4 drafting team and the support of the following
organisations in releasing their staff:

Anthony Collins Solicitors LLP

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For use by HK Development Bureau, Works Departments and ICAC only unless otherwise agreed by NEC, UK
 Abbreviations used in the flow chart boxes

Abbreviations used in the

flow chart boxes
FC 61 Flow chart for clause 61
FC X4 Flow chart for secondary Option X4

AM Alliance Manager
SC Subcontractor

CD Contract Data
CE Compensation event
DCP defect correction period
P&M Plant and Materials
PWDD Price for Work Done to Date
SCC Schedule of Cost Components

© nec 2018 neccontract.com Flow Charts for the Alliance Contract 1

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 Legend

Legend
CHART START Start

HEADINGS
Headings in caps
provide guidance
HELPFUL HEADING

STATEMENTS
Statement 51.1
If a clause is explaining Statement using part or all of the NEC
referenced, text next step text in clause 51.1
is from the NEC

LOGIC LINKS
Links go to right
and/or downward
unless shown

QUESTION
Answer question Does
Option X9
to determine the apply?
route to follow YES

NO
SUBROUTINE
Include another FC X9
Transfer of rights
flow chart here

CONTINUATION
Link to matching A B
point(s) on other sheet sheet
chart sheets 2 2

CHART TITLE
Chart number, Flow chart 51 Sheet 1 of 2
title and sheet Payment

A B
CONTINUATION sheet sheet
1 1

CHART FINISH Finish

Flow chart 51 Sheet 2 of 2

CHART TITLE
Payment

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 A communication
Start
is to be made.

© nec 2018
COMMUNICATIONS REQUIRED
BY THE CONTRACT THE LANGUAGE OF THE CONTRACT
13.1
FORM OF Each communication which the contract 13.1 The language of the
COMMUNICATIONS requires is communicated in a form Writing is in the language contract is stated in
which can be read, copied and of the contract. the CD.
recorded.

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13.2
If the Scope does not specify a
communication system, a Does the
communication has effect when it is NO Scope specify
received at the last address notified by the use of a
the recipient for receiving communication
FLOW CHART

communications or, if none is notified, system?

RECEIPT OF
at the address of the recipient stated in
COMMUNICATIONS the CD. YES
13.2
If the Scope specifies the use of a
communication system, a communication has
effect when it is communicated through the
communication system specified in the Scope.

13.6
13.6
FLOW CHART 13 SHEET 1 OF 3: COMMUNICATIONS

Is this YES
CERTIFICATE? communication a The AM issues certificate to the Alliance.
certificate?

NO

13.7
Is this 13.7
YES A notification or certificate which the contract
NOTIFICATION communication a
notification or requires is communicated separately from
OR CERTIFICATE? certificate? other communications.

NO

A
sheet
2

Flow Charts for the Alliance Contract

3

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 4
A
sheet
1

13.3
REPLY TO A Does the
COMMUNICATION contract require the NO
REQUIRED BY AM, the Alliance Board or
any member of the
THE CONTRACT? Alliance to
reply?

YES
REPLY WITHIN PERIOD
PERIOD FOR REPLY
13.3

Flow Charts for the Alliance Contract

Unless otherwise stated in these
conditions of contract, the AM, The period for reply
the Alliance Board or any member is stated in the CD.
of the Alliance replies within the
period for reply.
FLOW CHART

C
RESUBMISSION sheet
3

EXTENSION INFORMED
13.5 13.5 13.5
EXTENSION The Alliance Board and AM may Does the Alliance The Alliance Board and AM may
YES 13.5
TO PERIOD extend the period for reply to a Board wish to extend the The Alliance Board informs the extend the period for reply to a
communication submitted to them period for reply to a AM of the extension. communication submitted to them
FOR REPLY communication?
before the reply is due. before the reply is due.

NO
FLOW CHART 13 SHEET 2 OF 3: COMMUNICATIONS

13.5 Does the

The AM informs the YES AM wish to extend
member of the Alliance the period for reply to a
of the extension. communication?

NO

13.4
Is this
communication a NO
submission or Finish
resubmission for
acceptance?

YES
SUBMISSION OR
RESUBMISSION

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FOR ACCEPTANCE? B
sheet
3

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 B
sheet
2

THE COMMUNICATION

© nec 2018
IS A SUBMISSION OR
RESUBMISSION FOR
ACCEPTANCE

Is this a reply to
NO YES
a communication to be
made by the Alliance
Board?

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13.4
FLOW CHART

13.4
Does the AM YES YES Does the Alliance
accept the Finish
Board accept the
submission? submission?

NO NO

13.4 13.4
FLOW CHART 13 SHEET 3 OF 3: COMMUNICATIONS

The AM states the reasons

The Alliance Board states the reasons
in sufficient detail to enable the
in sufficient detail to enable the AM to
member of the Alliance to correct
correct the matter.
the matter.

13.4 13.4
The communication is resubmitted RESUBMISSION The communication is resubmitted
within the period for reply taking within the period for reply taking
account of these reasons.
REQUIRED
account of these reasons.

C
sheet
2

Flow Charts for the Alliance Contract

5

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 6
What is the
Start issue involving
the Client ?
ALLIANCE RESPONSIBILITIES ALLIANCE PROVIDES
NOT CHANGED BY ACCEPTANCE THE WORKS
14.1
ACCEPTANCE Acceptance?
The Client’s acceptance of the work does FC 20
OF ALLIANCE’S not change the Alliance’s responsibilty Providing the Works
WORK to Provide the Works.

Flow Charts for the Alliance Contract

INSTRUCT ALLIANCE CHANGE?
MANAGER
FLOW CHART 14: THE CLIENT

11.2(8)
14.2 Client’s Requirements is Does the
Instruction? The Client may give an NO
FLOW CHART

INSTRUCTION information which forms part of FC 13 Sheet 1 Client change

instruction to the AM which the Scope and which may be Instruction the Client’s
CHANGING changes the Client’s changed in accordance with Requirements?
CLIENT’S Requirements. the contract.
REQUIREMENTS
YES

COMPENSATION FC 61
Notify CE 60.1(1)
EVENT

Finish

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 EARLY WARNING
REGISTER EARLY WARNING MATTERS

11.2(17) 15.1
A member of the Alliance and the AM give an
The Early Warning Register
early warning by notifying all other members of
is a register of matters which
MATTERS the Alliance as soon as either becomes aware
are

© nec 2018
15.2 of any matter which could
• listed in the CD for inclusion
• delay Completion, 15.1
and Matters in the Early The AM prepares a first Early • impair the performance of the works in use, Could such NO
Start • notified by a member of the Warning Register Warning Register and issues • increase the Budget or, a matter
Alliance as early warning are listed in the CD. it to the Alliance within one • increase the Alliance Cost. occur?
matters. week of the starting date. The AM enters early warning matters in the
It includes a description of
Early Warning Register and issues a copy of
the matter and the way in YES
the updated Early Warning Register to the
which the effects of the
Alliance. Early warning of a matter for which a
matter are to be avoided or
CE has previously been notified is not required.
reduced.

WARN

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OTHER LATER EARLY WARNING MEETINGS
FIRST EARLY MEETING TO BE HELD?
PARTY WARNING MEETING 15.2 15.2
Later early warning meetings are held 15.2 Later early warning
15.2 • if the AM or a member of the Alliance Does the AM meetings are held if 15.2
FC 13 Sheet 1 instructs an early warning meeting to or any member of YES the AM or a member Is an early NO
The AM holds a first early
Notification be held, and, in any case, the Alliance instructs of the Alliance warning meeting
warning meeting within two
• at no longer interval than the interval an early warning instructs an early to be held?
weeks of the starting date.
stated in the CD until Completion of meeting? warning meeting to
FLOW CHART

the whole of the works. be held.

YES
NO
FLOW CHART 15: EARLY WARNING

The early warning

meeting interval is
stated in the CD.

15.2
15.2 Later early warning meetings
NO YES are held at no longer interval
Has the interval than the interval stated in the
occurred? CD until Completion of the
whole of the works.
15.2
Later early warning meetings are held
• if the AM or a member of the Alliance instructs
an early warning meeting to be held, and, in any case,
• at no longer interval than the interval stated in the
CD until Completion of the whole of the works.
WHO ATTENDS AN 15.2 15.2
EARLY WARNING Does the AM YES
The AM agrees with the
MEETING? wish other people Alliance who attends an early
to attend? warning meeting.

NO

EARLY WARNING An early warning

MEETING IS HELD meeting is held.

15.3
At an early warning meeting, those who attend co-operate in
making and considering proposals for how the effects of
15.4
each matter in the Early Warning Register can be avoided
or reduced, The AM revises the Early Warning Register to
THE PARTIES record the decisions made at each early 15.4
CO-OPERATE TO AVOID seeking solutions that will bring advantage to all those who Does the
warning meeting and issues the revised Early NO
will be affected, decision need a
AND REDUCE RISKS Warning Register to the Alliance within one
deciding on the actions which will be taken and who, in week of the early warning meeting. If a decision change to the
accordance with the contract, needs a change to the Scope, the AM notifies Scope?
will take them, the Alliance Board at the same time as the
deciding which matters can be removed from the Early revised Early Warning Register is issued. YES
Warning Register and
reviewing actions recorded in the Early Warning Register DECISIONS RECORDED
and deciding if different actions need to be taken and who, FC 13 Sheet 1
in accordance with the contract, will take them. Instruction and Finish

Flow Charts for the Alliance Contract

possible CE 60.1(2)

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 8
NOTIFICATION OF
AMBIGUITY OR INCONSISTENCY
16.1
If a member of the Alliance becomes Does
aware of an ambiguity or inconsistency either become NO
Start in or between the documents which aware of such
are part of the contract, it notifies the a state?
matter to the Alliance Board who give
an instruction to the AM to resolve it. FLOW CHART:
YES

REFER TO FC 13
ALLIANCE Refer

Flow Charts for the Alliance Contract

BOARD
FLOW CHART

INSTRUCTION 16.1
RESOLVING The Alliance Board gives
AMBIGUITY OR an instruction to resolve it.
INCONSISTENCY

MEMBERS OF THE ALLIANCE

OBEYS AN INSTRUCTION
27.2
FC 13 The Alliance obeys an instruction which
Alliance Board is in accordance with the contract and is Finish
instruction given by the Client, the Alliance Board
or the AM.
CHART 16 SHEET 1 OF 2: REQUIREMENTS FOR INSTRUCTIONS

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 NOTIFICATION OF ILLEGAL
OR IMPOSSIBLE REQUIREMENT
16.2
If a member of the Alliance becomes aware

© nec 2018
that the Scope includes an illegal or
impossible requirement it notifies the AM. If
the Scope does include an illegal or Does the AM NO
Start impossible requirement, the AM submits a consider such
a state has
FLOW CHART:
proposal to change the Scope to the
Alliance Board. The Alliance Board either occurred?
gives an instruction to the AM to change the
Scope or instructs the AM to resubmit the YES
proposal.

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SUBMIT FC 13
PROPOSED Submission
CHANGE
FLOW CHART

16.2
16.2
The Alliance Board either gives
The AM submits a proposed an instruction to the AM to
change to the Scope to the change the Scope or instructs the
Alliance Board. INSTRUCTION TO AM to resubmit the proposal.
CHANGE SCOPE

16.2 Does the

The Alliance Board instructs NO Alliance Board give an
the AM to resubmit the instruction to the AM to
proposal. change the
Scope?

YES

27.2
CHART 16 SHEET 2 OF 2: REQUIREMENTS FOR INSTRUCTIONS

MEMBERS OF The Alliance obeys an instruction

THE ALLIANCE which is in accordance with the
OBEYS THE contract and is given by the
INSTRUCTION Client, the Alliance Board or the
AM.

COMPENSATION FC 61
Possible CE 60.1(2) Finish
EVENT

Flow Charts for the Alliance Contract

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 10
17.2
17.1 17.2 Does the
Start A member of the Alliance A member of the Alliance takes Alliance take action to
NO
does not do a Corrupt Act. action to stop a Corrupt Act of a stop a Corrupt Act of a SC or
SC or supplier of which it is, or supplier of which they are,
should be, aware. or should be,
aware?

YES
11.2(12)
A Corrupt Act is DOES A POSSIBLE
YES TERMINATION
FLOW CHART:
the offering, promising, giving, accepting CORRUPT ACT
or soliciting of an advantage as an OCCUR?
inducement for an action which is illegal, Does a FC 91
A CORRUPT unethical or a breach of trust or Corrupt Act Possible termination
abusing any entrusted power for private gain occur? (R7)
ACT
in connection with this contract or any other
contract with the Client. This includes any
commission paid as an inducement which NO
was not declared to the Client before the

Flow Charts for the Alliance Contract

Contract Date.

11.2(31)
FLOW CHART

A SC is a person or organisation who has a contract with

CHART 17: CORRUPT ACTS

a member or members of the Alliance to

• contruct or install part of the works,
• design all or part of the works, except the design of P&M
SUBCONTRACTOR carried out by the supplier or
• provide a service in the Working Areas which is necessary
to Provide the Works, except for the
• hire of Equipment or
• supply of people paid for by a Partner according to the
time they work.

11.2(26) Finish
PLANT AND
MATERIALS P&M are items intended to be included in the works.

11.2(32)
WORKING The Working Areas are the Site and areas provided
by a member of the Alliance which are
AREAS
• necessary for Providing the Works and
• used only for work in the contract.

11.2(1)
The Alliance is the Client and the Partners. A
ALLIANCE reference to a member of the Alliance is a reference 17.3
to the Client or one of the Partners.
The members of the Alliance include
equivalent provisions to these in
subcontracts and contracts for the
supply of P&M and Equipment.
11.2(24)
The Partners are partners unless later changed in
PARTNERS
accordance with the contract.

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YES

Are there
11.2(18)
subcontracts
Equipment is items provided and used by the Alliance NO
and contracts for the
EQUIPMENT to Provide the Works and which the Scope does not supply of P&M and
require the Alliance to include in the works. Equipment?

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 EVENT PREVENTS ALLIANCE FROM COMPLETING
THE WHOLE OF THE WORKS
18.1
THE ALLIANCE If an event occurs which
ISSUED PROGRAMME • stops the Alliance completing the whole of the works or

© nec 2018
CONTRACT DATE • stops the Alliance completing the whole of the works by the date
11.2(1) for planned Completion shown on the Issued Programme,
11.2(22)
The Alliance is the Client 11.2(11) The Issued Programme is the programme and which
and the Partners. A The Contract Date is the date identified in the CD or is the latest • the Alliance could not prevent and
Start reference to a member of when the contract came into programme issued by the AM. The latest • people or organisations experienced in works similar to the
FLOW CHART:
the Alliance is a reference existence. programme issued by the AM supersedes works would have judged at the Contract Date to have such a
to the Client or one of the previous Issued Programmes. small chance of occurring that it would have been unreasonable
Partners. to have allowed for it,
the AM submits a proposal to the Alliance Board for how the event
can be dealt with. The Alliance Board gives an instruction to the AM
stating how the event is to be dealt with.

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ALLIANCE MANAGER
SUBMITS PROPOSAL

FC 13 YES Does NO
CHART 18: PREVENTION

Proposal such an event

occur?
FLOW CHART

18.1
The AM submits a proposal to the
Alliance Board for how the event
can be dealt with.

18.1
The Alliance Board gives an ALLIANCE BOARD
instruction to the AM stating how INSTRUCTS
the event is to be dealt with.

FC 13 ALLIANCE
Instruction BOARD
INSTRUCTS

FC 61
Possible CE 60.1(7) Finish

POSSIBLE COMPENSATION EVENT

Flow Charts for the Alliance Contract

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 12
PERFORMANCE TABLE
ALLIANCE OBJECTIVES
THE ALLIANCE 11.2(25)
11.2(5) The Performance Table includes the targets for PARTNERS
11.2(1)
An Alliance Objective is an performance stated for the Alliance Objectives, 11.2(24)
The Alliance is the Client and sets out the adjustment to payment if a measured
aspect of performance by the The Partners are partners
Start the Partners. A reference to a performance is higher or lower than the target and
Alliance which is in the document unless later changed in
member of the Alliance is a sets out how the adjustments are shared between
stated in the CD and for which a accordance with the contract.
reference to the Client or one the Partners. The Performance Table is the
performance target is stated in
of the Partners. performance table unless later changed in
the Performance Table.
accordance with the contract. FLOW CHART

WHAT THE ALLIANCE MEMBERS DO

IMPLEMENTATION PLAN
20.1
The members of the Alliance 11.2(20)
SCOPE
• collaborate with each other to achieve the Alliance The Implementation Plan is information
Objectives and the partner objectives of every which describes

Flow Charts for the Alliance Contract

11.2(29)
Partner, • the management structure of the Alliance,
Scope is information which
• work collectively to support the delivery of the • the roles and responsibilities of the
• specifies and describes the works or
contract on a best for project basis, The Client, performance members of the Alliance, 11.2(2)
• states any constraints on how the Alliance
• develop and use common systems and processes table, partners, partner • delegation by the Alliance Board, The Alliance Board comprises
Provides the Works
as set out in the Implementation Plan, • the use of common systems and
CHART: 20: THE ALLIANCE
FLOW CHART

objectives, alliance board and is either the alliance board representatives

• give advice, information and opinion to the Alliance representatives are stated processes and unless later changed in
• in the documents which the CD states it is
Board and to the other members of the Alliance in the CD. • other information which the Alliance accordance with the contract.
in or
when asked to do so by the Alliance Board; this Board requires to be included
• in an instruction given in accordance with
advice, information and opinion is given fully, and is either ALLIANCE BOARD
the contract.
openly and objectively and • in the documents which the CD states it
• establish an integrated alliance delivery team is in or
based on a best for project basis and supporting • in an instruction given in accordance with
the sharing of knowledge, information, and best the contract.
practice.

20.2
The Alliance Provides the Works
in accordance with the ALLIANCE PROVIDES
• Scope,
• Alliance Objectives and
THE WORKS
• Implementation Plan.

Finish

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 Start

11.2(1)
THE The Alliance is the Client and the Partners. A

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ALLIANCE reference to a member of the Alliance is a
reference to the Client or one of the Partners.

MEETING
FLOW CHART:
11.2(2) 21.1
ALLIANCE The Alliance Board comprises the alliance board Does a A member of the Alliance may
21.2
BOARD representatives unless later changed in member of the Alliance YES replace its alliance board 21.2
Does an Alliance YES
accordance with the contract. wish to replace their alliance representative after notifying The Alliance Board
the other members of the member require a
board representative? meets.
Alliance of the name of the meeting?
replacement.

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11.2(5)
An Alliance Objective is an aspect of performance NO
ALLIANCE NO
by the Alliance which is in the document stated
OBJECTIVES in the CD and for which a performance target
is stated in the Performance Table. 21.2
The Alliance Board meets at no longer interval than
the interval stated in the CD from the starting date
until Completion of the whole of the works.
The alliance board representatives,
FLOW CHART

starting date, works and partner

objectives are stated in the CD. MEETING
OTHER PEOPLE
ATTEND MEETING 21.5
21.3 21.3 The Alliance Board acts in accordance with the
Agreement to an action of the Alliance Board is made 21.6 contract and 21.4
Unless otherwise stated in these
CHART 21: THE ALLIANCE BOARD

• at a meeting of the Alliance Board if all members are conditions of contract an action or The Alliance Board may • sets the strategy for the achievement of the Alliance The Alliance Board
present or decision of the Alliance Board is taken instruct other people to Objectives and all partner objectives, appoints a person to
• by a communication from each member of the following agreement of all members of attend an Alliance Board • agrees the allocation of work within the Alliance, lead each Alliance
Alliance Board confirming their agreement. the Alliance Board. meeting. • makes decisions as stated in the contract, Board meeting.
• appoints and instructs the AM, and
• resolves disputes between members of the Alliance. LEAD PERSON
ACTS OF ALLIANCE BOARD
11.2(29)
21.7 Scope is information which
The Alliance Board may give an • specifies and describes the works or
instruction to the AM which changes • states any constraints on how the Alliance Provides the Works SCOPE
the Scope, Performance Table, and is either
21.8
Budget and Completion Date. • in the documents which the CD states it is in or
The Alliance Board may add
• in an instruction given in accordance with the contract.
Does the a Partner to the Alliance. The
Alliance Board wish YES Alliance Board adds the
to add a Partner to additional Partner’s data to the
11.2(8) the Alliance? CD and instructs the AM to
Client’s Requirements is information which forms part of the CLIENT change the Performance
Scope and which may be changed in accordance with the REQUIREMENTS Table accordingly.
contract. NO

11.2(25)
The Performance Table includes the targets for performance Finish
stated for the Alliance Objectives, sets out the adjustment to 21.7
PERFORMANCE
payment if a measured performance is higher or lower than the The Alliance Board adds the
target and sets out how the adjustments are shared between
TABLE additional Partner’s data to
the Partners. The Performance Table is the performance table the CD and instructs the AM
unless later changed in accordance with the contract. to change the Performance
Table accordingly.

11.2(10)
The Completion Date is the completion date unless later COMPLETION
changed in accordance with the contract. DATE

11.2(6) The performance table,

BUDGET completion date, and budget
Budget is the items and amounts stated in the budget
information is stated in the

Flow Charts for the Alliance Contract

information unless later changed in accordance with the contract.
CD.

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 14
SCOPE
ALLIANCE MANAGER
ALLIANCE MANAGER 11.2(29)
COMPLIES Scope is information which
11.2(4) 11.2(2) MAINTAINS RECORD • specifies and describes the
22.1
The AM is the person The Alliance Board works or
The AM acts in accordance appointed by the comprises the alliance 22.2 • states any constraints on how The alliance board
Start with the Implementation Alliance Board to board representatives The AM maintains a record the Alliance Provides the Works representatives and the
Plan and complies with any manage the work on unless later changed in of changes to the Scope. and is either works are stated in the CD.
instructions given in behalf of the Alliance accordance with the • in the documents which the CD
accordance with the contract. Board. contract. states it is in or
• in an instruction given in
accordance with the contract.

PWDD
FEE DISALLOWED COST 22.3
DEFINED COST The AM prepares a report that contains
11.2(27) ALLIANCE COST
11.2(19) • forecasts of the Alliance Cost with an explanation of
11.2(16) 11.2(15) The PWDD is the total
The Fee is the amount 11.2(3) any changes made since the previous forecast,
Defined Cost which the

Flow Charts for the Alliance Contract

calculated by applying Disallowed Cost is cost Defined Cost is the cost • details of the Alliance’s performance against the
AM forecasts will have The Alliance Cost is the sum of
each Partner’s fee which is not justified by of the components in the Alliance Objectives including a forecast of the final
been paid by the the PWDD and the Client’s
percentage to that a Partner’s accounts SCC less Disallowed measurement against each objective,
Partners before the Costs.
amount of the Partner’s and records. Cost. • forecast of the date of Completion and
next assessment date
Defined Cost. • any other Information the Alliance Board instructs the
plus the Fee.
AM to report upon and submits it to the Alliance Board
FLOW CHART

at the intervals stated in the CD from the starting date

PERFORMANCE TABLE until Completion of the whole of works.

11.2(25) COMPLETION
11.2(7) The Performance Table
Client’s Costs are the following includes the targets for 11.2(9)
components of cost incurred 11.2(5) performance stated for the Completion is when the Alliance has
by the Client as a member of Alliance Objectives, sets out • done all the work which the Scope states is to be done
FLOW CHART 22: THE ALLIANCE MANAGER

An Alliance Objective is an
the Alliance. the adjustment to payment if a by the Completion Date and
aspect of performance by the
• Amounts calculated using the measured performance is • corrected notified Defects which would have prevented The Client’s cost schedule, fee
Alliance which is in the
rates and prices contained in higher or lower than the target the Client from using the works or Others from doing percentage and performance
document stated in the CD and
the Client’s cost schedule, and sets out how the their work. table are stated in the CD.
for which a performance target
• amounts paid to other people adjustments are shared If the work which the Alliance is to do by the Completion
is stated in the Performance
for correcting Defects, between the Partners. The Date is not stated in the Scope, Completion is when the
Table.
• costs and charges identified Performance Table is the Alliance has done all the work necessary for the Client
as payable by the Client in the performance table unless later to use the works and for Others to do their work.
Client’s cost schedule, ALLIANCE OBJECTIVE changed in accordance with
• less any amount recovered the contract.
by the Client from insurers.
Does the
CLIENT’S COST AM forecast the final
YES measurement against an
Finish
Alliance Objective will achieve
the performance
level stated?

NO

22.4
If the AM’s forecast final measurement 22.4
against an Alliance Objective will not The AM resubmits the
achieve the performance level stated, the communication within the
AM submits to the Alliance Board for period for reply taking
acceptance the Alliance’s proposals for account of these reasons.
improving performance.

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22.4
YES Does the NO The Alliance Board states that they
Alliance Board accept will not provide the improvement in
the proposals? performance needed to achieve the
Alliance Objectives.

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 PROVIDE THE WORKS
ALLIANCE DESIGNS DESIGN ACCEPTANCE SUBMIT DESIGN
11.2(28)
To Provide the Works means to do 23.2
23.1
the work necessary to complete The AM submits the particulars of
The Alliance carries out the The works are FC 13
Start the works in accordance with the the Alliance’s design as the Scope

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design necessary to Provide the stated in the CD. Submission for acceptance
contract and all incidental work, requires to the Alliance Board for
Works. acceptance.
services and actions which the
contract requires. FLOW CHART:

SUBMISSION IN PARTS

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21.2 23.3
DESIGN TO BE Does the Scope YES The AM may submit the Alliance’s
SUBMITTED? require the Alliance design for acceptance in parts if
to submit its the design of each part can be
design? assessed fully.

NO
FLOW CHART

REVISE DESIGN

SUBMIT FC 13
Submission for acceptance The Alliance revises its design.
DESIGN

Does the 23.2

ALLIANCE YES Alliance Board NO The Alliance does not proceed
FC 22
PROVIDES THE accept the Alliance’s with the relevant work until the
Providing the Works
Alliance Board has accepted
CHART 23 SHEET 1 OF 2: THE ALLIANCE’S DESIGN

WORKS submission?
the Alliance’s design.

DESIGN ACCEPTED? AWAIT ACCEPTANCE

A
sheet
2

Flow Charts for the Alliance Contract

15

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 16
Client wishes to use and copy
the Alliance’s design?
What is the
issue?

23.6
The Client may use and copy the Alliance’s design for any
A purpose connected with construction, use, alteration or USE FOR FLOW CHART
sheet demolition of the works unless otherwise stated in the Alliance CONSTRUCTION, ETC.
1 Objectives and for other purposes as stated in the contract.

Is this Is this
YES otherwise stated in NO

Flow Charts for the Alliance Contract

the purpose of the
Client ’s use? the Alliance
Objectives?

NO YES
FLOW CHART

23.6
The Client may use and copy USE STATED
the Alliance’s design for other IN THE
purposes as stated in the contract. CONTRACT

EQUIVALENT RIGHTS
23.6
23.6 Are there other 23.6 The Partners obtain from
NO YES
The Client may not use or purposes as stated in The Client may use and SCs equivalent rights for
copy the Alliance’s design. the contract? copy the Alliance’s design. the Client to use material
prepared by the SC.
CHART: 23 SHEET 2 OF 2: THE ALLIANCE’S DESIGN

Finish

23.4
The Partners may use the material 23.4
Has the The Partners may use the
Use material? provided by them under the contract Is it
ownership of the NO NO material provided by them
for other work unless otherwise stated
material been given under the contract for other
• the ownership of the material has in the Scope?
to the Client? work.
been given to the Client or
• it is stated otherwise in the Scope.
YES YES
23.4
The Partners may not use
the material provided by
them under the contract for
other work.

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23.5
The members of the Alliance 23.5
Retain copies? retain copies of drawings, The copies are retained in
The period for retention is
specifications, reports and stated in the CD. the form stated in the
other documents which Scope.
record their design for the
period for retention.

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 KEY PERSON JOBS
24.1 Does
The Alliance provides each key the Alliance
person to do the job stated in the Key people are stated YES
Start provide each key person

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CD, or provides a replacement in the CD. named to do the job
person who has been accepted by stated in the
the AM. CD?
FLOW CHART:
NO

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24.1
The Alliance submits the name,
PROPOSED
CHART 24: PEOPLE

relevant qualifications and

experience of a proposed REPLACEMENT
replacement person to the AM PERSON
for acceptance.
FLOW CHART

24.1
NO Does the AM YES The Alliance provides the
accept the Alliance’s Finish
replacement person who has
submission?
been accepted by the AM.

Flow Charts for the Alliance Contract

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 18
WHAT IS
NEEDED? PROVISION OF INFORMATION
CO-OPERATION WITH OTHERS
Alliance
25.1 25.1
co-operates 11.2(23)
Do Others need The Alliance co-operates with Others
with Others? Others are people or organisations who are not YES
Start information about including in obtaining and providing
the Client, the AM, a Partner or any employee, information which they need in
SC or supplier of a member of the Alliance. the works?
connection with the works.

NO
FLOW CHART:

The works are

stated in the CD.

Flow Charts for the Alliance Contract

SHARING WORKING AREAS
25.1
Do Others YES 25.1
need to share the The Alliance shares the Working Areas
FLOW CHART

Working with Others as stated in the Scope.

Areas?

NO

SERVICES AND OTHER

CHART 25: WORKING WITH OTHERS

THINGS
Alliance
provides Does the 25.2
support? Scope state the Alliance YES
The members of the Alliance
is to provide services provides services and other
and other things as stated in the Scope.
things?

NO 11.2(29)
Scope is information which
• specifies and describes the works or
• states any constraints on how the
Alliance Provides the Works
SCOPE
and is either
• in the documents which the CD states
it is in or
• in an instruction given in accordance
with the contract.

Finish

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 ALLIANCE
ALLIANCE RESPONSIBLE PARTNERS
11.2(1)
26.2 The Alliance is the Client and 11.2(24)
The members of the Alliance the Partners. A reference to a The Partners are partners
Start are responsible for participating member of the Alliance is a unless later changed in
in Providing the Works as if

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reference to the Client or one accordance with the contract.
they had not subcontracted. of the Partners.
PROVIDING THE WORKS
11.2(28) SUBCONTRACTORS
FLOW CHART:
To Provide the Works means
to do the work necessary to 26.2
complete the works in The partners and works The contract applies as if a SC’s
accordance with the contract are stated in the CD. employees and equipment were
and all incidental work, services the members of the Alliance’s.
and actions which the contract

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requires.

26.1
If a member of the Alliance intends to
appoint a subcontractor it provides
FLOW CHART

26.1 Does a
YES • details of the work to be undertaken by
A member of the Alliance Does the AM YES member of the Alliance
the SC,
does not appoint a proposed accept this? intend to subcontract
• the name and details of the proposed
CHART 26: SUBCONTRACTING

SC until the AM has accepted work?

SC,
it.
• the proposed subcontract documents,
including any pricing information
NO to the AM for acceptance. NO

Has the Partner

appointed a SC for NO
substantial work before the
AM has accepted
the SC?

YES
FC 91
Termination Finish
Possible termination
(R4)

Flow Charts for the Alliance Contract

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 20
OTHERS
APPROVAL NEEDED
Alliance needs 11.2(23)
design approval Others are people or organisations who are
Approval of the Alliance’s design is
Start not the Client, the AM, a Partner or any
necessary from Others.
employee, SC or supplier of a member of the
Alliance.

FLOW CHART:
27.1
The Alliance obtains approval DESIGN
of its design from Others APPROVAL
where necessary.

Flow Charts for the Alliance Contract

EARLY APPROVAL
WARNING? OBTAINED?
15.1 Is the
FLOW CHART

Does failure Alliance

YES NO YES
to get approval successful in obtaining
warrant early design approval from
warning? Others?

NO
CHART 27: OTHER RESPONSIBILITIES

The Alliance revises its

EARLY FC 15 design (with the Alliance REVISE DESIGN
WARNING Early warning Board’s acceptance) and AND RESUBMIT
resubmits.

OBEY INSTRUCTION
Members of the
Alliance obey an 27.2
instruction The Alliance obeys an instruction which
is in accordance with the contract and is
given by the Client, the Alliance Board
or the AM.

Alliance acts in HEALTH AND SAFETY

accordance with
health and safety 27.3
requirements The Alliance acts in accordance with
Finish
the health and safety requirements
stated in the Scope.

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 Start

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28.1 28.1
In order to carry A member of the Alliance
Disclose does not disclose
out their duties under the
FLOW CHART:
information? YES information obtained in
contract is it necessary for a The works are stated
member of the Alliance to disclose in the CD. connection with the works
information obtained in except when necessary
connection with the to carry out its duties
works? under the contract.

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NO
CHART 28: DISCLOSURE
FLOW CHART

Finish

NO

28.2
Publicise 28.2
the works? Does the
Alliance Board agree YES The works are stated The Alliance may publicise
the Alliance may publicise in the CD. the works only with the
the works? agreement of the Alliance
Board.

Flow Charts for the Alliance Contract

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 22
Start What is the
issue?

SITE ACCESS TO SITE

STARTING DATE
11.2(30)
30.1 The Site is the area within the FC 34
Starting? The access date and
The Alliance does not start boundaries of the site and the boundaries of the site Access to and use FLOW CHART:
work on the Site until the first volumes above and below it are stated in the CD. of the Site
access date. which are affected by work
included in the contract.

STARTING AND
COMPLETION
COMPLETION
11.2(9)

Flow Charts for the Alliance Contract

Completion is when the Alliance has COMPLETION DATE
• done all the work which the Scope states is to be
COMPLETION DATE
done by the Completion Date and
• corrected notified Defects which would have 30.1 11.2(10)
Completion? The Alliance does the work
prevented the Client from using the works or The Completion Date is the
FLOW CHART

Others from doing their work. so that Completion is on or completion date unless later changed
If the work which the Alliance is to do by the before the Completion Date. in accordance with the contract.
Completion Date is not stated in the Scope,
Completion is when the Alliance has done all the
work necessary for the Client to use the works and
for Others to do their work.

The completion date is

stated in the CD.
CHART 30: STARTING AND COMPLETION

COMPLETION CERTIFICATE

30.2 30.2
The AM decides the date of The AM certifies Completion
Completion. within one week of the date.

COMPLETION

30.2
FC 15 NO Does the AM
Early warning certify Completion
within one
week?

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YES

Finish

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 11.2(20)
The Implementation Plan is information
which describes
• the management structure of the
Alliance,

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• the roles and responsibilities of the
members of the Alliance, Does the
• delegation by the Alliance Board, AM or a member
NO
Start • the use of common systems and of the Alliance propose
processes and a change to the
FLOW CHART:
• other information which the Alliance Implementation
Board requires to be included Plan?
and is either
• in the documents which the CD states it YES
is in or
• in an instruction given in accordance

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with the contract.

IMPLEMENTATION PLAN
FLOW CHART

31.1
31.2
The AM or a member of the
The AM submits a Alliance may propose a change
revised proposal. to the Implementation Plan.

31.2
The AM consults the Alliance on a
change to the Implementation Plan
and submits the proposed change to
the Alliance Board.
CHART 31: REVISING THE IMPLEMENTATION PLAN

31.2
The Alliance Board includes in
Does the Alliance YES
the notification an instruction
Board notify the AM of
the acceptance of changing the Implementation
the change? Plan.

NO

31.2
The Alliance Board notifies the
AM of the reasons for not
accepting it.

Does the 31.2

NO AM agree with YES The AM agrees with the
the Alliance that no Finish
Alliance that no change is
change is required.

Flow Charts for the Alliance Contract

required?

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 24
PROGRAMME IN CONTRACT ISSUED PROGRAMME
DATA PART TWO?
11.2(22)
32.1 The Issued Programme is the
programme identified in the CD The partner objectives,
Is a YES
Start or is the latest programme issued Finish starting date and
programme identified
by the AM. The latest programme access dates are stated
in the CD?
issued by the AM supersedes in the CD.
previous Issued Programmes. FLOW CHART:
NO

32.3
The AM shows on each programme issued to the Alliance
• how the work is to be carried out to achieve the Alliance

Flow Charts for the Alliance Contract

Objectives and the partner objectives,
• the starting date, access dates and Completion Date,
• planned Completion,
• the order and timing of the operations which the Alliance
plans to do in order to Provide the Works,
FLOW CHART

• the order and timing of the work of Others as last agreed

with them by the Alliance or, if not so agreed, as stated in
32.2 the Scope,
CHART 32: THE PROGRAMME

The members of the Alliance coordinate • the dates when the Alliance plans to complete other work
32.1 their work for the benefit of the works and needed to allow the Others to do their work,
FIRST The AM prepares a first programme to support the creation and updating of the • provisions for
PROGRAMME and issues it to the Alliance within programme by the AM. The members of – float,
the period stated in the CD. the Alliance provide information and make – time risk allowances,
changes to their work programmes as – health and safety requirements and
PERIOD FOR ISSUE required by the AM. – the procedures set out in the contract,
• the dates when, in order to Provide the Works in
OF A FIRST PROGRAMME accordance with the programme, the Alliance will need
– access to a part of the Site if later than its access date,
– acceptances and
– information from Others,
• for each operation, a statement of how the Alliance plans
to do the work identifying the principal Equipment and
other resources which will be used and
• other information which the Scope requires the Alliance to
show on a programme submitted for acceptance.
A programme issued to the Alliance is in the form stated in
the Scope.

INFORMATION TO BE SHOWN ON
A PROGRAMME ISSUED

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 REVISED PROGRAMME

A revised programme is to
Start
be issued.

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FLOW CHART:

33.2 33.2
ANY MEMBER OF THE Does any The AM revises the programme and
ALLIANCE REQUESTS member of the Alliance YES issues it to the Alliance when a member of
THAT THE PROGRAMME request that the the Alliance requests that the programme

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programme is is changed and the AM in consultation with
IS CHANGED changed? the Alliance decides to change it.

NO
FLOW CHART

ALLIANCE MANAGER 33.2 33.2

Does the AM YES
CHOOSES TO ISSUE The AM revises the programme and
choose to issue
A REVISED a revised issues it to the Alliance when the AM
PROGRAMME? programme? chooses to.

NO
CHART 33: REVISING THE PROGRAMME

33.1
The AM shows on each revised programme
33.2 • the actual progress achieved on each
IN ANY CASE, IS A 33.2 INFORMATION
The AM revises the programme and operation and its effect upon the timing of
In any case, is YES
REGULAR REVISED issues it to the Alliance at no longer the remaining work, TO BE SHOWN
a revised programme
PROGRAMME DUE interval than the interval stated in the • how the Alliance plans to deal with any ON A REVISED
due to be
TO BE ISSUED? CD from the starting date until delays and to correct notified Defects and PROGRAMME
issued?
Completion of the whole of the works. • any other changes which the AM proposes
to make to the Issued Programme.
NO

11.2(22)
The Issued Programme is the programme
identified in the CD or is the latest programme ISSUED
issued by the AM. The latest programme PROGRAMME
issued by the AM supersedes previous Issued
Programmes.

Finish

Flow Charts for the Alliance Contract

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 26
THE SITE
ACCESS NEEDED
11.2(30)
The Site is the area within the boundaries The boundaries of the site and
The Alliance needs access to
Start of the site and the volumes above and access dates are stated in
and use of part of the Site.
below it which are affected by work the CD.
included in the contract.

FLOW CHART:

34.1
The Client allows access to and use of
each part of the Site to the Alliance which

Flow Charts for the Alliance Contract

SITE is necessary for the work included in the
ACCESS contract. Access and use is allowed on or
before the later of its access date and the
date for access shown on the Issued
Programme.
FLOW CHART

ALLIANCE WARNS
34.1
TIMELY Does the Client allow NO FC 15
the Alliance access by Early warning and
ACCESS?
the relevant date? possible CE 60.1(3)
CHART 34: ACCESS TO AND USE OF THE SITE

YES

Finish

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 35.1
The Client may instruct the
Start
Alliance to stop or not to start
any work.

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INSTRUCTION TO STOP
OR NOT START WORK COMPENSATION EVENT OBEY INSTRUCTION

35.1 27.2
FLOW CHART:
Does the Client YES FC 13 FC 61 The Alliance obeys an instruction which
issue such an Instruction Notify CE 60.1(4) is in accordance with the contract and is
instruction? given by the Client, the Alliance Board
or the AM.

NO

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FLOW CHART

INSTRUCTION TO RE-START
OR TO START WORK
OBEY INSTRUCTION
OR REMOVE
35.1 27.2
35.1
The Client subsequently gives an YES The Alliance obeys an instruction which
Does the Client FC 13
instruction to the Alliance to re-start or is in accordance with the contract and is
issue such an Instruction
start the work unless the Scope is given by the Client, the Alliance Board
instruction? or the AM.
changed to remove work.

NO
RE-START OR START WORK
OR REMOVE
REASON FOR
TERMINATION? TERMINATION

91.2 Have 13
YES weeks elapsed YES FC 90
Is substantial
work or all work since the instruction Possible termination
affected? stopping work? (R10)

NO NO
CHART 35: INSTRUCTIONS TO STOP OR NOT TO START WORK

Finish

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 28
36.1
YES The Client takes over the
Has Completion
occurred? works not later than two
weeks after Completion.

NO

The completion 36.3

date is stated in The AM certifies the date FLOW CHART
COMPLETION the CD. upon which the Client
takes over any part of
11.2(9) DEFECT the works and its extent
Completion is when the Alliance has COMPLETION DATE within one week of the
11.2(13) date.
• done all the work which the Scope
states is to be done by the Completion A Defect is
11.2(10) Does the
Date and • a part of the works which is not in
Alliance Board agree
• corrected notified Defects which would The Completion Date is the accordance with the Scope or NO
Start the Client may use a part
• a part of the works designed by the

Flow Charts for the Alliance Contract

have prevented the Client from using the completion date unless later of the works before
works or Others from doing their work. changed in accordance with the Alliance which is not in accordance
Completion has been
If the work which the Alliance is to do by contract. with the applicable law or the
certified?
Alliance’s design which the Alliance
CHART: 36: TAKE OVER

the Completion Date is not stated in the

Scope, Completion is when the Alliance Board has accepted.
has done all the work necessary for the YES
FLOW CHART

Client to use the works and for Others to

do their work.

36.2
If the Alliance Board agrees the
Client may use any part of the
works before Completion has
been certified.

36.2
The Client takes over the part
of the works when it begins to
use it.

36.3
The AM certifies the date upon
which the Client takes over any Finish
part of the works and its extent
within one week of the date.

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 SCOPE
11.2(29)
Scope is information which
• specifies and describes the works or
Is there a

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• states any constraints on how the Alliance
Provides the Works quality management NO
Start
and is either system stated in
• in the documents which the CD states it is in the Scope?
or
FLOW CHART:
• in an instruction given in accordance with the
contract. YES

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40.1
Each member of the Alliance
operates a quality management
system which complies with the
requirements stated in the
Scope.
FLOW CHART

40.2
Within the period stated in the
CD, the AM produces a quality
plan and issues it to the
Alliance.
CHART 40: QUALITY MANAGEMENT SYSTEM

40.3
The members of the Alliance
support the creation and
updating of the quality plan by Finish
the AM. The members of the
Alliance comply with the
Alliance quality plan.

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 30
DOES THIS CLAUSE APPLY?
TEST TO BE DONE ALLIANCE TESTS DEFECT
41.1 41.1
Is this test or 41.1 11.2(13)
Is this test or NO NO
A test or inspection is to inspection required by This clause The test or inspection A Defect is
Start inspection required by
be done. the applicable does not apply. is done by the Alliance. • a part of the works which is
the Scope?
law? not in accordance with the
Scope or
• a part of the works designed FLOW CHART:
YES YES
by the Alliance which is not
in accordance with the
applicable law or the
Alliance’s design which the
Alliance Board has accepted.

ANY

Flow Charts for the Alliance Contract

41.1 41.2 DEFECT? 41.3
This clause only applies The AM informs the Client in If a test or inspection
to tests and inspections time for a test or inspection to FC 13 Does the test shows that any work
YES
required by the Scope or be arranged and done before Notification or inspection reveal has a Defect, the
the applicable law. doing work which would a Defect? Alliance corrects the
FLOW CHART

obstruct the test or Defect and the test or

inspection. inspection is repeated.
NO

41.2 41.2
CHART 41: TESTS AND INSPECTIONS

The AM informs the Client of The Client informs the AM 41.2

INFORM each test and inspection carried of each of the tests and The Client may watch any
EACH TEST OR out by the Alliance before the inspections it will carry out test done by the Alliance.
INSPECTION test or inspection starts and before the test or inspection
afterwards informs the Client of starts and afterwards informs
the results. the AM of the results. CLIENT MAY WATCH
TEST Finish

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 DEFECT SCOPE SEARCHING
11.2(29)
11.2(13) 42.1
A Defect is Scope is information which
Searching may include
• a part of the works which is not in • specifies and describes the works or uncovering, dismantling, re-covering

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accordance with the Scope or • states any constraints on how the and re-erecting work,
• a part of the works designed by the Alliance Provides the Works providing facilities, materials and The defects date is stated in
Start
and is either the CD.
Alliance which is not in accordance samples for tests and inspections
with the applicable law or the • in the documents which the CD states it done by the AM and
is in or
FLOW CHART:
Alliance’s design which the Alliance doing tests and inspections which
Board has accepted. • in an instruction given in accordance the Scope does not require.
with the contract.

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SEARCH? DEFECT?
REASON
FLOW CHART

SEARCH 42.1 42.1 42.1

Does the 42.1 Is a
Has the NO Until the defects date, the YES NO
UNTIL AM may instruct the AM instruct the Alliance The AM gives reasons for Defect
DEFECTS defects date the search with the
Alliance to search for a to search for a found?
occurred? instruction.
DATE Defect. Defect?

YES NO YES

DEFECTS
NOTIFIED 42.2
Until the defects date
UNTIL • a member of the Alliance
Is a YES
DEFECTS Defect notifies the AM and other
DATE found? members of the Alliance, and
• the AM notifies the Alliance
as soon as they become aware
of a Defect.
CHART 42: SEARCHING FOR AND NOTIFYING DEFECTS

NO

DEFECT FC 13
Notification
NOTIFIED

DEFECT FC 43
CORRECTED Correcting Defects

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 32
COMPLETION
11.2(9)
DEFECT Completion is when the Alliance has ALLIANCE OBJECTIVE DEFECT
DEFECT FOUND? • done all the work which the Scope
11.2(13) states is to be done by the 11.2(5)
NOTIFIED?
A Defect is Completion Date and An Alliance Objective is an
• a part of the works which is not in • corrected notified Defects which aspect of performance by Is the
Has a YES accordance with the Scope or would have prevented the Client YES
the Alliance which is in the Defect a failure to
Start Defect been • a part of the works designed by from using the works or Others from document stated in the CD achieve an Alliance FLOW CHART:
found? the Alliance which is not in doing their work. and for which a Objective?
accordance with the applicable If the work which the Alliance is to do performance target is stated
law or the Alliance’s design which by the Completion Date is not stated in the Performance Table.
NO the Alliance Board has accepted. in the Scope, Completion is when the NO
Alliance has done all the work
necessary for the Client to use the
works and for Others to do their work.
42.2

Flow Charts for the Alliance Contract

YES
Has the Defect
been notified?
START DATE FOR DEFECT
CORRECTION PERIOD
NOTIFIED NO
FLOW CHART

43.2
DEFECT 43.2 DEFECT
Was the Defect YES
TO BE The DCP begins at CORRECTION PERIOD
notified before
Completion.
CORRECTED Completion?
43.1
The DCP and specific DCPs
are stated in the CD. For other Defects, the
NO CORRECT Alliance corrects a Defect
43.2
DEFECT whether or not the AM has
The DCP begins when the notified it.
Defect is notified.

ACCESS TO WORKS ALLIANCE’S 43.1

EARLY WARNING The Alliance does not
ACCESS TO AND correct the Defect.
CHART 43 SHEET 1 OF 2: CORRECTING DEFECTS

43.4 43.4
USE OF WORKS Has the Client The Client allows the Alliance access to Does the NO
YES FC 15
REQUIRED? taken over any and use of a part of the works which Client arrange suitable
part of the access and Early warning
has been taken over if it is needed for
works? correcting a Defect. use?

NO YES

NOTIFIED DEFECT
IS CORRECTED
43.2
A If the Alliance is required to correct a
DEFECTS sheet Finish
Defect it corrects it before the end of the
CERTIFICATE 2 defect correction period.

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 A DEFECTS
sheet
1 CERTIFICATE

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DEFECTS CERTIFICATE
11.2(14)
Has the AM NO
issued the Defects The Defects Certificate is a
FLOW CHART:
Certificate? statement that there are no
notified Defects.

YES

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The defects date is DEFECTS
stated in the CD. DATE

ISSUE DEFECTS CERTIFICATE

FLOW CHART

43.3 43.3
43.3 43.3
YES YES The AM issues the Defects Certificate If the Alliance Board does not
Has the Has the last to the Alliance Board at the defects accept the certificate, the AM
defects date DCP date if there are no notified Defects, or submits a revised Defects
occurred? expired? otherwise at the date when all notified Certificate when the Defects
Defects have been corrected. have been corrected.
NO NO

YES

Are there Does the

DEFECTS any Defects listed YES Alliance Board notify
the AM that there are
CHART 43 SHEET 2 OF 2: CORRECTING DEFECTS

LISTED? on the Defects

Certificate? uncorrected
Defects?

NO
NO

43.3
The Alliance Board notifies
the AM of the acceptance
of the certificate.

43.3
The Client’s rights in respect
of a Defect which the AM has
not found or notified are not
affected by the issue of the
Defects Certificate.

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 34
PROPOSAL TO ACCEPT
DEFECT A DEFECT
CONSIDER?
11.2(13) 44.1
A Defect is The Alliance Board may change the 44.1
• a part of the works which is not in Scope so that a Defect does not have Does the
accordance with the Scope or to be corrected. If the Alliance Board Alliance Board change NO
Start • a part of the works designed by the does change the Scope so that a the Scope so that a Defect
Alliance which is not in accordance Defect does not have to be corrected it does not have to be
with the applicable law or the gives an instruction to the AM to corrected?
FLOW CHART:
Alliance’s design which the Alliance change the Scope, Performance Table,
Board has accepted. Budget and Completion Date
accordingly. The change is not a CE. YES

Flow Charts for the Alliance Contract

21.8
SCOPE
The Alliance Board gives an instruction
CHANGED to the AM which changes the Scope.
FLOW CHART

27.2
CHART 44: ACCEPTING DEFECTS

OBEY The Alliance obeys an instruction which

INSTRUCTION is in accordance with the contract and is
given by the Client, the Alliance Board
or the AM.

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 ASSESSMENT ASSESSMENT DATE?
ASSESSMENT DATES
50.1
The AM, in consultation with the
Is today NO
Partners, assesses the amount Assessment dates
Start an assessment

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due and submits an application (See procedure on sheet 2)
date?
for payment to the Client before
each assessment date.
YES
FLOW CHART:

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PWDD
CALCULATIONS (See procedure on sheet 3)
FLOW CHART

50.2
The AM’s application for payment
includes the amount due to each of
the Partners, details of how the Finish
amount has been assessed and is in
the form stated in the Scope.
CHART 50 SHEET 1 OF 4: ASSESSING THE AMOUNT DUE

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 36
FIRST ASSESSMENT DATE FIRST DATE?

Called from sheet 1

50.1 50.1
The starting date and Is this the YES Is today the NO
Begin The first assessment date is decided by the first assessment date
assessment interval first assessment date for AM and is not later than the assessment for the contract?
are stated in th CD. the contract? interval after the starting date.

NO YES
FLOW CHART:
LATER ASSESSMENT DATES LATER DATE?

50.1 50.1
YES Is today YES
Is this the final Later assessment dates occur at the end of an assessment date
DETERMINE each assessment interval until the final Not assessment date
ASSESSMENT assessment? for the contract?
assessment.

Flow Charts for the Alliance Contract

DATES
NO NO
FLOW CHART

Assessment date

Not assessment date Return

Return to sheet 1
CHART 50 SHEET 2 OF 4: ASSESSING THE AMOUNT DUE

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 AMOUNT DUE PRICE FOR WORK
DONE TO DATE
50.3 DEFINED COST DISALLOWED COST
Called from sheet 1 The amount due at the
11.2(27)
assessment date is the total of 11.2(15) 11.2(16)
The PWDD is the total Defined

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the
Cost which the AM forecasts Defined Cost is the cost of the Disallowed Cost is cost which is
Begin • PWDD,
will have been paid by the components in the SCC less not justified by a Partner’s
• plus other amounts to be paid
Partners before the next Disallowed Cost. accounts and records.
to the Partners,
• less amounts to be paid by or assessment date plus the Fee.
FLOW CHART:
retained from the Partners.

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CURRENCY

50.5
Payments of Defined Cost made by a Partner in
a currency other than the currency of the 11.2(19)
contract are included in the amount due as The fee percentage is The Fee is the amount calculated
payments to be made to it in the same currency. stated in the CD. by applying each Partner’s fee
FLOW CHART

Such payments are converted to the currency of percentage to that amount of the
the contract in order to calculate the Fee using Partner’s Defined Cost.
the exchange rates.
FEE

Return to sheet 1
The currency of the contract
and exchange rates are Return
stated in the CD.
CHART 50 SHEET 3 OF 4: ASSESSING THE AMOUNT DUE

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 38
DETERMINE
OTHER
AMOUNTS ERROR IN AMOUNT DUE INTEREST
Called from sheet 1 50.4 50.4
Did a previous The Client informs the AM of the error FC 51
YES
Begin assessment contain an within one week of the date of issue of the Interest on correcting
incorrectly assessed application and the AM corrects the amount due
amount due? amount due. FLOW CHART:
NO

Flow Charts for the Alliance Contract

LATE PAYMENT INTEREST

Were previous 51.2 FC 51

NO
payments paid within If a payment is late, interest is paid on the Interest on late
the periods stated in late payment.
FLOW CHART

payment
the contract?

YES

Return

Return to sheet 1
CHART 50 SHEET 4 OF 4: ASSESSING THE AMOUNT DUE

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 AMOUNT DUE

YES FC 50
Making
Start a payment? Assessing the
amount due

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NO
FLOW CHART:

51.1
51.1 YES 51.1
MAKING Payment is made by
Is this the The first payment is the
the Client to the

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A PAYMENT first payment? amount due.
Partners.

NO PAYMENT AMOUNTS PAYMENT BY WHOM

NO

51.1 51.1 51.1

Other payments are the Does the
FLOW CHART

YES Payment is made by

change in the amount change reduce the the Partner to the
due since the previous amount due? Client.
assessment.
CHART 51 SHEET 1 OF 2: PAYMENT

PAYMENT CURRENCY

51.1
A Payments are in the
sheet The currency of the contract currency of the contract Finish
2 is stated in the CD. unless otherwise stated
in the contract.

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39

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 40
ALLIANCE MANAGER’S
ACTION
PAYMENT
51.1
A YES Does NO Payment is made within three weeks
Making A payment is made on or before
sheet Option Y(UK)2 of each assessment date or, if a
a payment? the latest date for payment.
1 apply? different period is stated in the CD,
within the period stated.
MAKING A NO YES FLOW CHART:
PAYMENT
PERIOD FOR PAYMENT

FC Y(UK)2.2
Dates for payment

Flow Charts for the Alliance Contract

INTEREST AMOUNT

LATE PAYMENT? 51.2

INTEREST RATE INTEREST CALCULATION If a payment is late, interest is
FLOW CHART

paid on the late payment. Interest

51.2 51.3 is assessed from the date by
Calculating YES YES
Is a The interest rate Interest is calculated on a daily which the late payment should
interest on a late
payment is stated in the CD. basis at the interest rate and have been made until the date
payment?
late? is compounded annually. when the late payment is made,
and is included in the first
CALCULATING assessment after the late
CHART 51 SHEET 2 OF 2: PAYMENT

NO NO
INTEREST ON A payment is made.
LATE PAYMENT

TAX DUE
51.4
Does the
YES Any tax which the law requires a
law require a member
TAX of the Alliance to member of the Alliance to pay is
pay any tax? added to any payment made
under the contract.

NO

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 DEFINED COST
COSTS NOT INCLUDED IN
FEE
DEFINED COST ARE IN FEE 52.1
11.2(19) Defined Cost includes only amounts
52.1 The Fee is the amount calculated using rates and

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All the Partners’ costs which are calculated by applying each The fee percentage percentages stated in the CD and
Start other amounts at open market or
not included in the Defined Cost Partner’s fee percentage to is stated in the CD.
are treated as included in the Fee. that amount of the Partner’s competitively tendered prices with
Defined Cost. deductions for all discounts, rebates
FLOW CHART:
and taxes which can be recovered.

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52.2
The Partners keep these records
accounts of payments of Defined
PARTNER’S Cost,
ACCOUNTS proof that the payments have
AND RECORDS been made,
communications about and
FLOW CHART

CHART 52: DEFINED COST

assessments of CEs for SCs and

other records stated in the Scope.

52.3
The Partners allow the AM and the
Client to inspect at any time within
INSPECTION working hours the accounts and
records which they are required to
keep.

Finish

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 42
Start

11.2(25)
The Performance Table includes the targets for performance
stated for the Alliance Objectives, sets out the adjustment to
PERFORMANCE payment if a measured performance is higher or lower than
FLOW CHART
TABLE the target and sets out how the adjustments are shared
between the Partners. The Performance Table is the
performance table unless later changed in accordance with
the contract. 53.2
At the dates stated in the
BUDGET Performance Table and
ALLIANCE COST when the final amount due
53.1 11.2(6) is assessed, the AM

Flow Charts for the Alliance Contract

The performance At the dates stated in the Budget is the items and 11.2(3) assesses the difference
table and budget Performance Table, the AM amounts stated in the The Alliance Cost is the between the Alliance Cost
information are assesses the Alliance’s budget information unless sum of the PWDD and the and the proportion of the
stated in the CD. performance in accordance later changed in accordance Client’s Costs. Budget for the work which
with the Performance Table. with the contract. has been completed.
FLOW CHART

ALLIANCE’S
PERFORMANCE
OVERSPEND
53.3 53.3
A Budget overspend has NO Is the Budget
been created and the greater than the
Partners pay the amount Alliance Cost?
stated in the Performance
Table.
YES
CHART: 53: PERFORMANCE MEASUREMENTS

53.3
A Budget saving has been
SAVINGS created and the Partners
are paid the amount stated
in the Performance Table.

53.1
Other than a Budget
NO saving or overspend, does a
part of the works achieve or
exceed a target stated
for an Alliance
Objective?

YES

53.3 53.1
The Partners pay the amount The Partners are paid the
stated in the Performance amount stated in the
Table assessed by the AM. Performance Table assessed

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by the AM.

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Assessing the Finish
amount due

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 Start

ALLIANCE MANAGER FINAL

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ASSESS FINAL AMOUNT DUE GIVES DETAILS PAYMENT MADE
Has the AM 54.1
issued a termination 54.1 54.1
Four weeks after the acceptance 54.1 Is a different
certificate terminating the NO The AM gives the Alliance NO
by the AB of the Defects The AM submits an payment period The final payment is
FLOW CHART:
obligation of all the Partners Board details of how the
Certificate, the AM makes a final application for payment to 3 weeks stated made within three weeks
to participate in Providing amount due has been
assessment of the amount due to to the Client. in the CD? of the assessment.
the Works? assessed.
each Partner.
YES
YES

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54.1
Thirteen weeks after the AM issues a
termination certificate terminating the FINAL 54.1
obligation of all the Partners to The final payment is made
PAYMENT within the period stated in
participate in Providing the Works, the
AM makes a final assessment of the
MADE the CD.
amount due to each Partner.
FLOW CHART

54.2
If the AM has issued a termination certificate
terminating the obligation of a Partner to
CHART 54: FINAL ASSESSMENT

participate in Providing the Works, the AM Has the AM

makes a final assessment of the amount due issued a termination
YES certificate terminating the
to the Partner within thirteen weeks after
issuing the termination certificate. The AM obligation of a Partner to
gives the Partner and the Alliance Board participate in Providing
details of how the amount due has been the Works?
assessed.

NO
PAYMENT MADE PAYMENT MADE

54.2 Is a different 54.2

The final payment is made YES NO The final payment is made
payment period to 3
within the period stated in weeks stated in within three weeks of the
the CD. the CD? assessment.

Is a dispute
on the amount referred
YES to the Alliance Board for
final resolution within 4 weeks
of the date of the
assessment?

NO

54.3
54.3 A final assessment is conclusive
No conclusive evidence. evidence of the final amount due
under or in connection with the
contract.

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 44
POSSIBLE
A possible CE has been
Start COMPENSATION
identified.
EVENT

FLOW CHART:
What type
of event?

CHANGE TO
CLIENT’S REQUIREMENTS

11.2(8)

Flow Charts for the Alliance Contract

60.1(1) 60.1(1)
Client’s Requirements is
The Client or the Alliance Board gives information which forms part
an instruction changing the Client’s of the Scope and which may
Requirements. be changed in accordance
with the contracts.
FLOW CHART

60.1(2)
60.1(2) Y OTHER
The Alliance Board give an instruction sheet
changing the Scope in order to avoid
COMPENSATION
3
or reduce the effects of a CE. EVENTS

NO ACCESS AND USE OF SITE

60.1(3)
The Client does not allow access to
CHART 60 SHEET 1 OF 3: COMPENSATION EVENTS

60.1(3)
and use of each part of the Site by the
later of its access date and the date for
access shown on the Issued
Programme.

STOP OR NOT START WORK

COMPENSATION EVENTS ARISING
60.1(4)
FROM THE ALLIANCE MANAGER,
60.1(4) X
The Client gives an instruction to sheet ALLIANCE BOARD OR CLIENT
stop or not to start any work. 3 GIVING AN INSTRUCTION
OR NOTIFICATION OR ISSUING
A CERTIFICATE

A
sheet

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 A TYPE OF COMPENSATION EVENT
sheet
(CONTINUED)
1

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CLIENT’S LIABILITY EVENT FLOW CHART:

60.1(5) 60.1(5)
An event which is a Client’s liability
stated in these conditions of contract.

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CORRECTION TO AN ASSUMPTION COMPENSATION EVENTS
ARISING FROM THE
60.1(6) ALLIANCE MANAGER,
60.1(6) X
The AM notifies the Alliance of a
sheet ALLIANCE BOARD OR CLIENT
correction to an assumption which the
FLOW CHART

3 GIVING AN INSTRUCTION OR
AM stated about a CE.
NOTIFICATION OR ISSUING A
CERTIFICATE
PREVENTION EVENT
60.1(7)
An event which
• stops the Alliance completing the whole of the works or
• stops the Alliance completing the whole of the works by the date
for planned Completion shown on the Issued Programme,
60.1(7) and which
• the Alliance could not prevent,
• people or organisations experienced in works similar to the
works would have judged at the Contract Date to have such a
small chance of occurring that it would have been unreasonable
to have allowed for it and
CHART 60 SHEET 2 OF 3: COMPENSATION EVENTS

• is not one of the other CEs stated in the contract.

60.1(8)
60.1(8)
Additional CEs stated in the CD.

B Y OTHER
sheet sheet COMPENSATION
3 3 EVENTS

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 46
B Y OTHER
sheet
TYPE OF COMPENSATION EVENT sheets COMPENSATION
2 (CONTINUED) 1–2 EVENTS
X2.1
A change in the law of the country in
X2.1 Does YES which the Site is located is a CE if it
Option X2 occurs after the Contract Date. If the
apply? effect of a CE which is a change in
the law is to reduce the total Defined
Cost, the Budget is reduced. FLOW CHART:
NO

RIGHT TO SUSPEND
Y(UK)2 HOUSING, CONSTRUCTION FOR NON-PAYMENT
AND REGENERATION ACT 1996
Y2.5
If a Partner exercises its right under

Flow Charts for the Alliance Contract

Y2.5 Does YES the Housing Grants, Construction and
Option Y(UK)2 Regeneration Act 1996 as amended
apply? by the Local Democracy, Economic
Development and Construction Act
2009 to suspend performance, it is a
FLOW CHART

NO CE.

61.1
Does the CE
arise from the AM, Alliance NO
Board or Client giving an instruction
or notification or issuing
a certificate?

YES
CHART 60 SHEET 3 OF 3: COMPENSATION EVENTS

COMPENSATION EVENTS ARISING FROM 61.1

THE ALLIANCE MANAGER, ALLIANCE BOARD 61.1 The CE does not arise from the AM,
X The CE arises from the AM, Alliance
OR CLIENT GIVING AN INSTRUCTION OR sheets Alliance Board or Client giving an
Board or Client giving an instruction
NOTIFICATION OR ISSUING 1–2 instruction or notification or issuing
or notification or issuing a certificate.
a certificate?
A CERTIFICATE?

FC 61
Notifying CEs

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The event is
Finish
not a CE.

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 COMPENSATION EVENT COMPENSATION EVENT
TO BE NOTIFIED? IDENTIFICATION
Has
FC 60 the event been NO
Start A CE is to be notified. Identifying CE

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identified as a
CE?

YES
FLOW CHART:

ALLIANCE MANAGER MAY COMPENSATION EVENT

STATE ASSUMPTIONS IS NOT NOTIFIED AFTER
DEFECTS DATE
61.4

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If the effects of a CE are too uncertain to be 61.5
NO Has YES A CE is not notified by the
forecast reasonably, the AM states assumptions
the defects date AM or Alliance after the
about the CE in the quotation. Assessment of
occurred? issue of the Defects
the event is based on these assumptions. If any
of them is later found to have been wrong, the Certificate.
AM notifies a correction.
FLOW CHART

NO COMPENSATION
EVENT
Does 61.4
PREVIOUS this event Is any of
concern a correction YES the AM’s stated NO
ASSUMPTIONS No CE is notified. Finish
to the AM’s stated assumptions later
WRONG? assumptions found to be
for a CE? wrong?
CORRECTION IS A COMPENSATION EVENT
NO YES

61.4 FC 13
The AM notifies a Notification of CE
correction. 60.1(6)

ALLIANCE MANAGER
STATES ASSUMPTIONS
CHART 61 SHEET 1 OF 3: NOTIFYING COMPENSATION EVENTS

61.4
61.4
Does the AM YES
FORECAST EFFECT decide the effects of the The AM states assumptions about the CE in
OF COMPENSATION CE cannot be forecast the quotation. Assessment of the event is
EVENT REASONABLY? reasonably? based on these assumptions.

NO

A B
sheet sheet
2 2

Flow Charts for the Alliance Contract

47

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 48
A B
sheet sheet
1 1

ALLIANCE MANAGER’S NOTIFICATION

INSTRUCTION OR 61.1 FLOW CHART:
NOTIFICATION OR Does the CE arise
from the AM, Alliance YES 61.1 FC 13
ISSUING A
Board or Client giving an The AM notifies the Alliance of the Notification of CE
CERTIFICATE instruction or notification or CE at the time of the communication.
issuing a
certificate?

Flow Charts for the Alliance Contract

NO
NO
EFFECT?
ALLIANCE’S QUOTATION PRODUCED
FLOW CHART

FAULT? 61.1
61.1 Does the event 61.1
Does the event NO have an effect upon the YES The AM notifies the Alliance
arise from a fault Budget, an Alliance of the CE at the time of the
of the Alliance? Objective or communication and produces
Completion? a quotation.
61.2
NOTIFICATION Has the AM YES NO
YES
ALREADY already notified the
GIVEN? event to the
Alliance?
QUOTATION FOR FC 62
NO COMPENSATION Quotations for CEs
EVENT
NOT A
COMPENSATION
EVENT
61.2
ALLIANCE Does a member NO
BELIEVES EVENT of the Alliance believe No CE is notified.
IS COMPENSATION that the event
EVENT? is a CE?

YES Finish
CHART 61 SHEET 2 OF 3: NOTIFYING COMPENSATION EVENTS

61.2
A member of the Alliance notifies
the AM of an event which has
happened or which is expected to
happen as a CE.

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C
sheet
3

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 ALLIANCE MANAGER NOTIFIES
ALLIANCE NOTIFIES
COMPENSATION EVENT 61.3 NOTIFICATION
The AM notifies the Alliance of that
the Budget, Performance Table and 61.3
C

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FC 13 the Completion Date are not to be The AM replies to the notification
sheet changed or
2 Notification of CE of a CE within one week.
the Budget, Performance Table and
the Completion Date are to be
changed.
FLOW CHART:

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61.3
Does the event arise NO
from a fault
of the Alliance?
FLOW CHART

61.3
YES Has the event
YES not happened and NO
is not expected
to happen?

61.3
Does the event have
YES NO
no effect upon the Budget,
an Alliance Objective
or Completion?

61.3
YES Is the event
not one of the CEs
stated in the
contract?
61.3
The AM notifies the Alliance that
NO
the Budget, Performance Table
and the Completion Date are not NOTIFICATION
to be changed and states the
reasons in the notification.
CHART 61 SHEET 3 OF 3: NOTIFYING COMPENSATION EVENTS

61.3
The AM notifies the Alliance that
NOTIFICATION the event is a CE and that it will
FC 13 produce a quotation.
Notification

SUBMIT QUOTES

FC 62
Finish
Quotations for CE

Flow Charts for the Alliance Contract

49

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 50
Start

ALTERATIONS TO
FORM OF QUOTATION
PROGRAMME
DETAILS PROVIDED
62.1
62.1
Quotations for a CE comprise proposed 62.1
62.2 If the programme for remaining
Is tha AM YES changes to the Budget, the Performance
The AM issues the quotation The AM provides details of work is altered by the CE, the FLOW CHART:
to produce a Table and any delay to the Completion
to the Alliance within three the assessment with each AM includes the alterations
quotation? Date assessed by the AM in consultation
weeks of the notification. quotation. to the Issued Programme in the
with the members of the Alliance
quotation.
affected by the CE.
NO

62.3

Flow Charts for the Alliance Contract

62.5 If a member of the Alliance
The AM issues a revised believes that the AM’s quotation
quotation to the Alliance within is incorrect it notifies the AM and
a time agreed with the Alliance the Alliance Board within two
Board. weeks of the date of issue of the
FLOW CHART

quotation.

62.5 62.4 Does a

62.4
Does the member of the
If the Alliance Board instructs The Alliance Board instructs YES YES
Alliance Board instruct Alliance believe that the
the AM to issue a revised the AM to issue a revised
the AM to issue a revised AM’s quotation is
quotation it explains the quotation within one week of
quotation? incorrect?
reasons for doing so. the notification.

NO NO

62.4 62.4
The Alliance Board The Alliance Board notifies
notifies the Alliance the AM that the quotation is
of its decision. correct within one week of
the notification.
CHART 62: QUOTATIONS FOR COMPENSATION EVENTS

DECISION NOTIFIED

62.4
The Alliance Board
notifies the Alliance
of its decision.

Finish

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 COMPENSATION EVENT BUDGET REDUCTIONS ONLY RIGHTS RISK ALLOWANCES
IS TO BE ASSESSED
63.3 63.4 63.7 63.8
If the effect of a CE is to reduce the If the effect of a CE is to reduce the The rights of the Alliance to changes The assessment of the effect of a CE
A CE is to be total Defined Cost, the Budget is not total Defined Cost and the event is a to the Budget, the Performance Table includes risk allowances for cost and
Start
assessed. change to the Client’s Requirements time for matters which have a

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reduced unless otherwise stated in and the Completion Date are their
these conditions of contract. instructed by the Client or Alliance only rights in respect of a CE. significant chance of occurring and
Board the Budget is reduced. are not CEs.
FLOW CHART:

RATES OR LUMP SUMS BUDGET

DIVIDING DATE
63.2 11.2(6)
63.1 63.1
The Client’s cost The AM may use Budget is the items and amounts
The change to the Budget is assessed
schedule is stated The dividing date is the date rates or lump sums stated in the budget information

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as the effect of the CE upon
in the CD. of the notification of the CE. to assess the change unless later changed in
CHANGE • the actual Defined Cost of the work
to the Budget. accordance with the contract.
TO THE done by the dividing date,
• the forecast Defined Cost of the
BUDGET work not done by the dividing date and
• the resulting Fee
and
• the Client’s Costs. The budget
FLOW CHART

information is
11.2(7)
stated in the CD.
FEE Client’s Costs are the following components of
cost incurred by the Client as a member of the
11.2(15) 11.2(19) Alliance
Defined Cost is the cost The Fee is the amount • Amounts calculated using the rates and
of the components in the calculated by applying each prices contained in the Client’s cost schedule, 63.9
SCC less Disallowed Partner’s fee percentage to • amounts paid to other people for correcting The assessment of the effect a CE is based
Cost. that amount of the Partner’s Defects, upon the assumptions that the Alliance reacts
Defined Cost. • costs and charges identified as payable by the
COMPETENT
REACTION competently and promptly to the event and
Client in the Client’s cost schedule. that any Defined Cost and time due to the
DEFINED COST • less any amount recovered by the Client from event are reasonably incurred.
insurers.

CLIENT’S COSTS
CHART 63: ASSESSING COMPENSATION EVENTS

11.2(25)
63.5
The Performance Table includes the
63.5 The assessment takes into targets for performance stated for the
account 63.6
A delay to the Completion Date Alliance Objectives, sets out the
CHANGE • any delay caused by the A change to the
is assessed as the length of time adjustment to payment if a measured
CE already in the Issued Performance Table is The performance
TO THE that, due to the CE, planned performance is higher or lower than Finish
Programme and assessed as the effect of table is stated in
COMPLETION Completion is later than planned the target and sets out how the
• events which have the CE upon the targets the CD.
Completion as shown on the adjustments are shared between the
DATE happened between the date stated in the Performance
Issued Programme current at Partners. The Performance Table is
of the Issued Programme Table.
the dividing date. the performance table unless later
and the dividing date. changed in accordance with the
contract.

PERFORMANCE
TABLE

Flow Charts for the Alliance Contract

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 52
QUOTATION ISSUED
64.1
Was the AM’s 64.1
A CE is to be quotation or revised quotation NO A CE is implemented two weeks after
Start challenged by a member of the
implemented. the AM’s quotation or revised quotation
Alliance within two weeks is issued.
of it being issued?

FLOW CHART:
YES
ALLIANCE BOARD STATES THE
QUOTATION IS CORRECT

64.1
A CE is implemented when the Alliance

Flow Charts for the Alliance Contract

Board notifies the Alliance that the
quotation is correct.
FLOW CHART

ASSESSMENT NOT REVISED

64.3
The assessment of an implemented CE is
not revised except as stated in these
conditions of contract.

64.2
When a CE is implemented the Budget,
the Completion Date and the Performance
Table are changed accordingly.
CHART 64: IMPLEMENTING COMPENSATION EVENTS

Finish

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 WORKING AREAS
PLANT AND MATERIALS
11.2(32)
11.2(26) The Working Areas are the Site and areas
Title to an item of P&M P&M are items intended to be provided by a member of the Alliance which are
Start
needs to be established.

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included in the works. • necessary for Providing the Works and
• used only for work in the contract.
FLOW CHART:

ALLIANCE MANAGER MARKED? TITLE PASSES TO CLIENT

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MARKS
70.1 70.1 70.1
ITEM LOCATED FC 71
Is the item YES Has the AM YES Whatever title a Partner has to P&M which
OUTSIDE THE located outside Marking Equipment marked the item are outside the Working Areas passes to
the Working P&M outside the as for the the Client if the AM has marked them as
WORKING AREAS?
Areas? Working Areas contract? for the contract.
FLOW CHART

NO NO

TITLE PASSES TO CLIENT

70.2
ITEM BROUGHT Has the 70.2
YES
WITHIN THE item been brought Whatever title a Partner has to P&M
within the Working passes to the Client if they have been
WORKING AREAS? brought within the Working Areas.
Areas?

NO
PERMISSION?

70.2 70.2
ITEM REMOVED Has the YES Was it removed YES
item been removed with the AM’s
FROM THE from the Working
WORKING AREAS? permission?
Areas?
CHART 70: THE CLIENT’S TITLE TO PLANT AND MATERIALS

NO NO
70.2
The title to P&M passes back to
the Partner if they are removed
from the Working Areas with the
AM’s permission.

Finish

Flow Charts for the Alliance Contract

53

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 54
EQUIPMENT
ITEM FOR MARKING PLANT AND MATERIALS
11.2(18)
Equipment is items provided and used 11.2(26)
An item of Equipment or P&M
Start by the Alliance to Provide the Works P&M are items intended to be included
is to be marked.
and which the Scope does not require in the works.
the Alliance to include in the works.

FLOW CHART:
CHART 71: M

71.1
Is this YES
AREAS

Flow Charts for the Alliance Contract

item located outside
the Working Areas?
ITEM LOCATED
OUTSIDE THE
NO 71.1
FLOW CHART

WORKING AREAS? Does the YES

contract identify
them for
payment? ITEM MARKED BY
IDENTIFIED ALLIANCE MANAGER
FOR PAYMENT? 71.1
NO Has a member of YES 71.1
the Alliance prepared them The AM marks Equipment, P&M
for marking as the Scope which are outside the Working Areas.
requires?
PREPARED
FOR MARKING?
NO

Finish

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 ARKING EQUIPMENT, PLANT AND MATERIALS OUTSIDE THE WORKING

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 Title to an object or to materials
Start within the Site needs to be
established.

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PARTNERS HAVE NO TITLE INSTRUCTIONS TO MOVE
FLOW CHART:
72.1 72.1
OBJECT OF VALUE Is it an YES 72.1
The Partners have no title to an
object of value or of The Alliance does not move the
OR HISTORICAL object of value or of historical or
historical or other object without instructions.
OR OTHER INTEREST? other interest within the Site.

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interest?

NO
FLOW CHART

72.1 72.1
FC 13
The AM informs the Alliance Board The Alliance Board instructs the
Instruction
when such an object is found. AM how to deal with the object.

27.2
The Alliance obeys an instruction
which is in accordance with the
contract and is given by the Client,
the Alliance Board or the AM.

ALLIANCE TITLE OBEY INSTRUCTION

CHART 72: OBJECTS AND MATERIALS WITHIN THE SITE

72.2 72.2
MATERIALS FROM Are there materials YES The Alliance has title to materials
EXCAVATION AND from excavation and from excavation and demolition
DEMOLITION? demolition? unless the Scope states otherwise.

NO

Finish

Flow Charts for the Alliance Contract

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 56
SUBCONTRACTOR
11.2(31)
A SC is a person or organisation who has
PROVIDE THE WORKS a contract with a member or members of
11.2(28) the Alliance to
To Provide the Works means to do the • construct or install part of the works,
Does the Client
work necessary to complete the works in • design all or part of the works, except the NO
Start provide material for
accordance with the contract and all design of P&M carried out by the supplier or
the Partners to Provide
incidental work, services and actions • provide a service in the Working Areas FLOW CHART:
the Works?
which the contract requires. which is necessary to Provide the Works,
except for the
– hire of Equipment or
– supply of people paid for by a Partner YES
according to the time they work.

Flow Charts for the Alliance Contract

PARTNERS’ RIGHT TO
USE MATERIAL PROVIDED
BY THE CLIENT
FLOW CHART

73.1
NO Do the Partners The Partners have the right to use
subcontract part of the material provided by the Client
works? only to Provide the Works.

YES

RIGHT AVAILABLE TO
SUBCONTRACTOR
73.1
CHART 73: THE PARTNERS’ USE OF MATERIAL

The Partners may make the right

to use material provided by the
Client available to a SC.

Finish

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 Start Determine the liability of What type
an event. of event?

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CLAIMS, PROCEEDINGS, ETC
80.1
FLOW CHART:
Claims and proceedings from Others and
compensation and costs payable to Others
which

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CLIENT PROVIDING A PART
OF THE WORKS

80.1
Arise from or in connection with the Client
FLOW CHART

providing a part of the works.

INTENTIONAL ACT OR OMISSION

80.1
Are a result of an intentional act or omission
to not comply with the Client’s obligations
stated in these conditions of contract.

DUE TO ANOTHER REASON

CHART 80 SHEET 1 OF 2: CLIENT’S LIABILITIES

NOT The event is CLIENT’S

The event is
CLIENT’S not at Client’s
a Client’s liability. LIABILITY
LIABILITY liability.

A
sheet Finish
2

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 58
A
TYPE OF EVENT sheet
(CONTINUED) 1
LOSS ETC AFTER TAKE OVER CLIENT’S
LIABILITY
80.1 80.1
Loss of or damage to the parts of the works taken Did the loss of NO
over by the Client, except loss or damage or damage occur before The event is
occurring before the issue of the Defects Certificate issue of the Defects a Client’s liability.
which is due to one of the reasons below. Certificate? FLOW CHART:
YES

Was the

Flow Charts for the Alliance Contract

loss or damage
due to?

DUE TO PRE-EXISTING DEFECT

FLOW CHART

80.1
A Defect which existed at take over.

DUE TO EVENT BEFORE TAKE OVER

80.1
An event occurring before take over which
was not itself a Client’s liability.
CHART 80 SHEET 2 OF 2: CLIENT’S LIABILITIES

DUE TO ALLIANCE AFTER TAKEOVER

Loss of or damage to property owned or occupied 80.1

by the Client other than the works, unless the loss The activities of the Alliance in Providing the
or damage arises from or in connection with the Woks on the Site after take over.
Alliance Providing the Works.

NOT
DUE TO CLIENT’S
OTHER CLIENT’S LIABILITIES ANOTHER CLIENT’S LIABILITY LIABILITY
REASON
The event is a The event is not a
Additional Client’s liabilities stated in the CD.
Client’s liability. Client’s liability.

NOT CLIENT’S LIABILITY

NONE OF THE ABOVE APPLY
The event is not a

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Finish
Client’s liability.

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 Determine whether an event
Start Due to?
is the Partners’ liability.

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81.1
Claims and proceedings from Others
and compensation and costs
FLOW CHART:
payable to Others which
• arise from or in connection with a
Partner providing part of the works
and
• are a result of an intentional act or

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omission to comply with the
Partners’ obligations stated in these
conditions of contract.

81.1
A breach of the intellectual property
FLOW CHART

rights of Others.

81.1
CHART 81: PARTNERS’ LIABILITIES

Death or bodily injury to employees

of the Partner.

81.1
Additional Partner’s liabilities stated
in the CD.

NOT
DUE TO PARTNERS’ LIABILITY
ANOTHER
REASON Is this
The event is not YES
stated as being
a Partners’ liability.
a Client’s liability?

NO

The event is a PARTNERS’

Partners’ liability. LIABILITY

Finish

Flow Charts for the Alliance Contract

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 60
What is the
Start
event?

FLOW CHART
Client’s liability event? FC 80
Client’s liabilities

Flow Charts for the Alliance Contract

Partners’ liability event? FC 81
Partners’ liabilities
FLOW CHART

CHART: 82: OTHER LIABILITIES

82.1
Other liability event? Liabilities other than those stated
as being Client’s or Partners’
liabilities are an Alliance Cost
unless recovered from an insurer.

ALLIANCE COST

Is the amount 11.2(3)

NO 82.1
of the event recovered The event is an The Alliance Cost is the
from an insurer? Alliance Cost. sum of the PWDD and
the Client’s Costs.

YES

82.1
The event is not Finish
an Alliance Cost.

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 SUCH EVENT?

83.1 83.2 83.3

Any cost which the Client has paid Any cost which a Partner has paid or Any cost which a Partner has paid or 83.2 NO
Start or will pay as a result of an event for will pay to Others as a result of an will pay to Others as a result of an Has such an event

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which a Partner is liable is paid by event for which the Client is liable is event for which another Partner is occurred?
that Partner. paid by the Client. liable is paid by that Partner.

YES
FLOW CHART:

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83.4
ESTABLISH The right of the Client or a Partner to
FC 80 FC 81 recover these costs is reduced if an
CONTRIBUTING
EVENT Client’s liabilities Partners’ liabilities EVENT?
event for which they were liable
LIABILITY contributed to the costs.
FLOW CHART

CHART 83: RECOVERY OF COSTS

YES Are there NO

any contributing
events?

83.4
Are any
CONTRIBUTING YES The reduction is in proportion to the extent
FC 80 FC 81 contributing events
EVENT that the event for which that Party is liable
Client’s liabilities Partners’ liabilities at the other Party’s
LIABILITIES contributed, taking into account each Party’s
liability?
responsibilities under the contract.

NO
LIABILITY REDUCED
PROPORTIONATELY

Finish

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 62
INSURANCE TABLE

INSURANCE TABLE
INSURANCES
Insurance against Minimum amount of cover
84.1 INSURANCES
Each member of the Alliance provides
insurance against death of or bodily injury to Loss of or damage to the works, P&M The replacement cost
84.2 FLOW CHART:
its employees arising out of and in the course
Start The Partners provide additional
of their employment in connection with the
insurances as stated in the CD.
contract. The minimum amount of cover is Loss of or damage to Equipment The replacement cost
the greater of the amount required by the
applicable law and the amount stated in the
CD for any one event. Loss of or damage to property (except the The amount stated in the CD for any one
works, P&M and Equipment) and liability for event with cross liablity so that the
bodily injury to or death of a person (not an insurance applies to each member of the

Flow Charts for the Alliance Contract

employee of a member of the Alliance) Alliance separately
arising from or in connection with the
Alliance Providing the Works
FLOW CHART

CHART 84: INSURANCE COVER

84.3
The Client provides the insurances stated in
the Insurance Table except any insurance
INSURANCES which the Partners are to provide as stated in
the CD. The Client provides additional
insurances as stated in the CD.

84.4
The insurances in the Insurance Table are in
the joint names of the Alliance. The insurances
JOINT NAMES provide cover for liabilities other than those
stated a Client’s or Partners’ liabilities from the
starting date until the Defects Certificate or a
termination certificate has been issued.

Finish

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 CLIENT
INSURANCES
84.2
Start The Partners provide additional insurances

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as stated in the CD.

ACCEPTANCE BY ALLIANCE MANAGER

SUBMISSION
85.1 85.1
CERTIFICATES The Client submits certificates for insurance The AM accepts the certificates if the insurance FC 13
provided by the Client to the AM for complies with the contract and if the insurer’s Submission by the Client

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SUBMITTED commercial position is strong enough to carry for acceptance by the AM
acceptance before the starting date and
afterwards as the AM instructs. the insured liabilities.
FLOW CHART

CLIENT'S RESPONSIBILITY
TO INSURE IS NOT CHANGED

85.2
Is the
YES The AM’s acceptance of an insurance
ACCEPTED? Client’s submission
certificate provided by the Client does not
accepted by
change the responsibility of the Client to
the AM?
provide the insurances stated in the CD.
FLOW CHART 85: INSURANCE BY THE CLIENT

NO

85.3
Does a Partner decide to
PARTNER insure an event or liability which NO
INSURES? the contract requires the Client to
insure if the Client does not
submit a required
certificate?
PARTNER TAKES OUT INSURANCE
YES
85.3
A Partner may insure an event or liability
which the contract requires the Client to
insure if the Client does not submit a
required certificate.

85.3
FC 50
The cost of this insurance to the Partner is Finish
Assessing the amount due
paid by the Client.

Flow Charts for the Alliance Contract

COST OF INSURANCE PAID BY CLIENT

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 64
86.1
Before the starting date and on each renewal 86.2 86.1
of the insurance policy until the defects date, 86.1 Does the Partner YES The AM accepts the certificates if the
Start the Partners submit to the AM for The certificates are signed by the submit a required insurance complies with the contract and if
acceptance certificates which state that the Partners’ insurer or insurance broker. certificate? the insurer’s commercial position is strong
insurance required by the contract is in force. enough to carry the insured liabilities.

FLOW CHART:
NO

86.2
The Client may insure an event or liability Does the AM NO

Flow Charts for the Alliance Contract

which the contract requires a Partner to accept the
insure if the Partner does not submit a certificates?
required certificate.

YES
FLOW CHART

86.2
The cost of this insurance to the Client
is paid by the Partner.
CHART 86: INSURANCE BY PARTNERS

Finish

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 MEMBERS OF THE
ALLIANCE COMPLY WITH
POLICIES INCLUDE WAIVER
TERMS OF POLICIES
OF SUBROGATION RIGHTS
85.3 INSURANCE COVER
87.1

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Is an The members of the
Insurance policies include a waiver by the
insurance YES Alliance comply with
insurers of their subrogation rights against FC 84
Start policy to be the terms and
the members of the Alliance and the directors Insurance cover
effected? conditions of the
and other employees of every insured except
insurance policies to
where there is fraud.
which they are a party.
NO

CLIENT
INSURANCE

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Who CLIENT
is to FC 85
BY WHOM? Insurance by Client
insure?

PARTNERS
FLOW CHART

FC 86
Insurance by Partners
FLOW CHART 87: INSURANCE POLICIES

Finish

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 66
ALLIANCE BOARD WISHES
TO TERMINATE
90.1 90.2
If the Alliance Board wishes to terminate If the Alliance Board wishes to terminate
the obligation of all Partners to participate the obligation of a Partner to participate in
in Providing the Works, it notifies the AM, Providing the Works, it notifies the Partner,
Start the AM, the Client and the other Partners
the Client and the Partners giving details
of the reason for terminating. The AM giving details of the reason for terminating.
issues a termination certificate if the The AM issues a termination certificate if FLOW CHART:
reason complies with the contract. the reason complies with the contract.

90.4 VALID REASON?

The Alliance Board may agree to

Flow Charts for the Alliance Contract

90.3 terminate the obligation of a Partner
or all Partners to participate in Does
FC 13 FC 91 The Alliance Board may
Providing the Works for any reason. the reason NO
Notification Reasons for terminate for a reason
The Alliance Board informs the AM comply with the
with reason termination identified in the Termination
of the agreement to terminate, the contract?
Table.
CHART 90: TERMINATION
FLOW CHART

procedure to be followed and the

NOTIFICATION VALID REASONS amount due on termination. The AM
issues a termination certificate. YES

PROCEDURES FOR
PARTNER STOPS WORK TERMINATION
90.6 90.5
After a termination certificate has been The procedures for termination FC 92 FC 93
issued a Partner does no further work Procedures on Payment on Termination is
are implemented immediately
necessary to Provide the Works and it termination termination not valid.
after the AM has issued a
is no longer a member of the Alliance. termination certificate.

90.3
The procedures followed and the amounts due
on termination to a Partner whose obligation to
participate in Providing the Works is terminated
are in accordance with the Termination Table.

TERMINATION TABLE

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Terminating Party Reason Procedure Amount due
Finish
The Alliance R1–R7 P1, P3, P4 and P6 A1 and A3
Board
R8–R11 P2 and P5 A1, A2 and A4

R12 and R13 P2 and P5 A1 and A2

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For use by HK Development Bureau, Works Departments and ICAC only unless otherwise agreed by NEC, UK
 INSOLVENCY EVENT
11.2(21)
Select one An Insolvency Event is one of the following or its equivalent.
of the following • If a member of the Alliance is an individual and has
which applies – presented an application for bankruptcy,

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YES – had a bankruptcy order made against it,
– had a receiver appointed over its assets or
91.1 INSOLVENCY EVENT – made an arrangement with its creditors.
Is this about • If a member of the Alliance is a company or partnership and has
terminating the obligation – had a winding-up order made against it,
FLOW CHART:
Identify a valid reason of a Partner to participate in 91.1 R1
– had a provisional liquidator appointed to it,
for one of the Parties Providing the Works if all members of The Partner has incurred an Insolvency – passed a resolution for winding-up (other than in order to amalgamate or reconstruct),
to terminate. the Alliance, other than the Event. (R1) – had an administration order made against it or had an administrator appointed over it,
Partner subject to – had a receiver, receiver and manager, or administrative receiver appointed over the
the temination whole or a substantial part of its undertaking or assets or
agree? – made an arrangement with its creditors.

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NO
91.1
Either Party may
terminate in the SUBSTANTIAL FAILURE
following instances. Has the AM
notified the Alliance Board
91.1 R2 YES
that the Partner has not put this
Substantially failed to comply with its default right within 4 weeks of
FLOW CHART

obligations. (R2) the date when the AM

notified the Partner
Start of the default?

NO

NO BOND OR GUARANTEE
Has the AM
notified the Alliance Board
91.1 R3 that the Partner has not put this YES
Not provided a bond or guarantee which default right within 4 weeks of
the contract requires. (R3) the date when the AM
notified the Partner
of the default?

NO
CHART 91 SHEET 1 OF 4: REASONS FOR TERMINATION

A B C
sheet sheet sheet
2 2 2

Flow Charts for the Alliance Contract

67

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 68
A B C
sheet sheet sheet
1 1 1

SUBCONTRACTOR APPOINTMENT

91.1 R4
The Partner has appointed a SC for
substantial work before the AM has
accepted the SC. (R4)

SUBSTANTIALLY HINDERED
Has the AM
notified the Alliance Board
91.1 R5
that the Partner has not stopped YES
Substantially hindered the Alliance or one of the following defaults within 4
Others. (R5) weeks of the date when the

Flow Charts for the Alliance Contract

AM notified the Partner
of the default?

NO
FLOW CHART

HEALTH OR SAFETY REGULATION BREACH

Has the AM
notified the Alliance Board
91.1 R6 that the Partner has not stopped YES
Substantially broken a health or safety one of the following defaults within 4
regulation. (R6) weeks of the date when the
AM notified the Partner
of the default?

NO

CORRUPT ACT
R7 91.1
91.1 NO
Was it done by a
The Partner does a Corrupt Act. (R7)
SC or supplier?

YES
FLOW CHART 91 SHEET 2 OF 4: REASONS FOR TERMINATION

91.1
Was the Partner
aware or should have YES
been aware of the
Corrupt Act?

NO

91.1
Did the Partner
inform the AM of the NO
Corrupt Act and take action to
stop it as soon as the
Partner became The Alliance Board

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aware of it? has a valid reason
for terminating.
NONE OF THE ABOVE APPLY YES

D
sheet Finish
3

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 D
sheet
2

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91.2
The Alliance Board may terminate
the obligation of all the Partners to
participate in Providing the Works if
all of the members of the Alliance,
other than the Client agree and
• the Client has incurred an
Insolvency Event (R8), 91.2
• the Client has not paid an amount Is this about

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YES
due under the contract within terminating the
thirteen weeks of the date that it obligation of all the
should have been paid (R9), Partners?
• the Client instructed the Alliance to
stop or not to start any substantial NO
work or all work and an instruction
allowing the work to re-start or start Select one
of the following
FLOW CHART

or removing work from the Scope

has not been given within thirteen which applies
weeks (R10). INSOLVENCY EVENT
• the Client has appointed a SC for
substantial work before the AM has 91.2 R8
accepted the SC (R11).
The Client has incurred an Insolvency
Event. (R8)

AMOUNT DUE NOT PAID

91.2 R9
The Client has not paid an amount due under
the contract within thirteen weeks of the date
that it should have been paid. (R9)

STOP OR NOT START WORK

91.2
FLOW CHART 91 SHEET 3 OF 4: REASONS FOR TERMINATION

The Client has instructed the Alliance to stop R10

or not to start any substantial work or all work
and an instruction allowing the work to re-start
or start or removing work from the Scope has
not been given within thirteen weeks. (R10)

APPOINT A SUBCONTRACTOR
91.2 R11
The Client has appointed a SC for substantial
work before the AM has accepted the
SC. (R11)

NONE OF THE
THE ALLIANCE 91.2
E ABOVE APPLY
BOARD MAY The Alliance Board Finish
sheet may terminate.
4 TERMINATE

Flow Charts for the Alliance Contract

69

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 70
E
sheet
3

91.3
91.3 Is this about
The Alliance Board may terminating the obligation YES
terminate the obligation of all of all members of the Alliance
members of the Alliance to to participate in Providing
participate in Providing the the Works?
Works.

NO Select which
one of the following
applies

Flow Charts for the Alliance Contract

RELEASED BY LAW

91.3
R12
The Alliance has been released under the
law from further performance of the whole
FLOW CHART

of the contract. (R12)

PREVENTION

91.3
An event occurs which
• stops the Alliance completing the whole of
the works or
• stops the Alliance completing the whole of
the works by the date for planned Completion
shown on the Issued Programme and is
forecast to delay Completion of the whole of R13
the works by more than thirteen weeks,
and which
• the Alliance could not prevent and
• people or organisations experienced in works
FLOW CHART 91 SHEET 4 OF 4: REASONS FOR TERMINATION

similar to the works would have judged at the

Contract Date to have such a small chance of
occurring that it would have been
unreasonable to have allowed for it. (R13)

The Alliance Board has

a valid reason for
terminating.

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There is not a valid
Finish
reason for termination.

NO VALID REASON

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 92.1
The procedure on termination Does YES 92.1
There is is one or more of the following
Start procedure P1 On termination, the Alliance may complete the works. (P1) PROCEDURE P1
termination. as set out in the Termination apply?
Table.

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NO

92.1
Does YES On termination, the Client may complete the works and may
procedure P2 use any P&M to which it has title. If a Partner is providing the PROCEDURE P2
apply? AM, the Client appoints a replacement AM and notifies the

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Partners of the name of the replacement. (P2)

NO

92.1
The Alliance Board may instruct a Partner whose obligation
FLOW CHART

Does has been terminated to leave the Site, remove any Equipment,
YES
procedure P3 P&M from the Site and assign the benefit of any subcontract or PROCEDURE P3
apply? other contract related to performance of the contract to another
member of the Alliance. The Partner gives to the Client
information resulting from work carried out to date and
information the Partner has obtained which it has a
NO responsibility to provide under the contract. (P3)

92.1
FLOW CHART 92: PROCEDURES ON TERMINATION

The Alliance may use any Equipment to which a Partner whose

Does YES obligation has been terminated has title to complete the works.
procedure P4 The Partner promptly removes the Equipment from Site when
PROCEDURE P4
apply?
the AM informs the Partner that the Alliance no longer requires
it to complete the works. (P4)

NO

92.1
Does YES The Partners leave the Working Areas and remove Equipment. PROCEDURE P5
procedure P5
apply? (P5)

NO

Does YES 92.1

procedure P6 The Alliance Board appoint a replacement Partner if necessary. PROCEDURE P6
apply? (P6)

NO

Flow Charts for the Alliance Contract

Finish

71

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 72
A payment is due
Start
on termination.

93.1
The amount due on termination includes (A1)
• an amount due assessed as for normal payments,
• the Defined Cost for P&M
– within the Working Areas or
– to which the Client has title and of which the Partner
has to accept delivery,
• other Defined Cost reasonably incurred in expectation of
AMOUNT A1 completing the whole of the works,

Flow Charts for the Alliance Contract

• any amounts retained by the Client and
• the amount stated in the Performance Table as the
Partner’s share of the difference between
– a proportion of the Budget, which is the proportion of
the work in the Budget that has been completed, and
FLOW CHART

– the total Alliance Cost which the Alliance has paid and
which it is committed to pay for work done before
termination.

REMOVING EQUIPMENT
93.2
FLOW CHART 93: PAYMENT ON TERMINATION

Include YES 93.2

The amount due on termination also includes amount The forecast Defined Cost of removing
OTHER AMOUNTS one or more of the following as set out in A2? the Equipment. (A2)
the Termination Table.
NO

ADDITIONAL COST TO COMPLETE

93.2
Include YES A deduction of the forecast of the
amount additional cost to the Alliance of
A3? completing the whole of the works. (A3)

NO

93.2
The fee percentage applied to, any
Include YES excess of the first forecast of the
amount Defined Cost of the works allocated to
A4? the Partner over the PWDD less the
Fee for that part of the works done by

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the Partner. (A4)
NO

Finish

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For use by HK Development Bureau, Works Departments and ICAC only unless otherwise agreed by NEC, UK
 NO CLAIMS
94.1
The members of the Alliance agree that 94.1
any failure by a member of the Alliance Any disputes between the members of
to comply with their obligations stated in the Alliance arising out of or in

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Start
these conditions of contract does not connection with the contract can only be
give rise to any enforceable right or resolved in accordance with these
obligation at law except for an event conditions of contract.
which is a Client’s or Partners’ liability.

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FC 95 to 97
FLOW CHART 94: NO CLAIMS
FLOW CHART

Finish

Flow Charts for the Alliance Contract

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 74
DISPUTE
ARISES
95.1 95.2
A dispute between the members The Alliance Board
or past members of the Alliance • refers the dispute to an independent
Start expert for an opinion or
arising under or in connection
with the contract is referred to • refers the dispute to the Senior
the Alliance Board. Representatives of each member
of the Alliance in dispute.

Flow Charts for the Alliance Contract

Does 95.2
the Alliance Independent expert? FC 96
Refers the dispute to an Independent
Board refer the independent expert for an
dispute to? expert
opinion.
FLOW CHART

Senior Representatives?

95.3
Unless and until the Alliance
95.2
FC 97 Board finally resolves the
Refers the dispute to the Senior
Senior dispute, the members of the
Representatives of each member
Representatives Alliance proceed as if the
of the Alliance in dispute.
FLOW CHART 95: RESOLVING AND AVOIDING DISPUTES

matter disputed was not

disputed.

Finish

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 WHO IS THE EXPERT? APPOINTMENT
96.1
If a dispute is referred to an 96.1
independent expert, the Alliance The members of the Alliance who
Start are in dispute jointly appoint the
Board agree who will act as the

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independent expert within one independent expert within a further
week of the referral. one week.

COSTS
96.4
96.5 The independent expert and the
The members of the Alliance that independents expert’s employees

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appoint the independent expert and agents are not liable to a
share its costs equally. The cost member of the Alliance for any
of the independent expert is not action or failure to take an action
an Alliance Cost. unless the action or failure to take
action was in bad faith.

NO LIABILITY
FLOW CHART

96.2
The Alliance Board submits a statement 96.3
of the issue on which an opinion is required The independent expert may
FLOW CHART 96: INDEPENDENT EXPERT

within one week of the appointment of the • use any procedure it considers necessary
independent expert. The independent to provide its opinion,
expert has three weeks to issue its opinion • take the initiative in ascertaining the facts
to the Alliance Board which can be and the law related to the dispute and
extended by agreement. • instruct a member of the Alliance to
The Alliance Board uses the opinion of the provide information related to the
independent expert to assist in finally dispute within a stated time.
resolving the issue.

ALLIANCE BOARD ACTS

Finish

Flow Charts for the Alliance Contract

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 76
SENIOR REPRESENTATIVES
TRY TO RESOLVE
MEDIATOR MAY
97.1
If a dispute is referred to the BE APPOINTED
Senior Representatives they try to 97.1
resolve it over a period of no more 97.2 97.2
At the end of this period the Senior
than four weeks, or a longer The Senior Representatives Do the Senior NO
Start Representatives produce a list of The Senior Representatives
period to which the Alliance Board may jointly appoint a mediator Representatives jointly
the issues agreed and issues not are stated in the CD.
agrees. The Senior Representatives to assist them in the resolution appoint a
agreed and submit this to the
attend as many meetings and use of any issues. mediator?
Alliance Board.
any procedure they consider
necessary to try to resolve the
YES
dispute.

97.5
The mediator and the mediator’s
employees and agents are not

Flow Charts for the Alliance Contract

liable to a member of the Alliance
for any action or failure to take an
action unless the action or failure
to take action was in bad faith.
FLOW CHART

97.6
The members of the Alliance that
appoint the Senior Representatives
share the cost of the mediator
equally. The cost of the mediator is
not an Alliance Cost.
FLOW CHART 97: SENIOR REPRESENTATIVES

97.3
The mediator and the Senior
Representatives agree the form of
the mediation. At the end of the
ISSUES LISTED mediation the Senior
Representatives produce a list of
the issues agreed and not agreed
and submits this to the Alliance
Board.

97.4
MEDIATION The proceedings of the mediation
PROCEEDINGS are private and are not disclosed
PRIVATE to anyone who did take part in the
mediation.

97.1
The Alliance Board finally resolves
any issues not agreed.

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 CHANGE IN THE LAW IS
COMPENSATION EVENT CONTRACT DATE

X2.1 11.2(11)
A change in the law of the country in The Contract Date is the date

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Start which the Site is located is a CE if it when the contract came into
occurs after the Contract Date. existence.

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Does a
CHANGE change in the NO
IN LAW? law occur after the
Contract Date?
FLOW CHART

YES
FLOW CHART X2: CHANGES IN THE LAW

X2.1
BUDGET MAY If the effect of a CE which is a change FC 61
Finish
BE REDUCED in the law is to reduce the total Defined Notify CE
Cost, the Budget is reduced.

Flow Charts for the Alliance Contract

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 78
X4.3
The Partner may propose an alternative
The contract includes guarantor who is also owned by the X4.3
provision for an ultimate ultimate holding company for acceptance The Partner gives to the
Start
holding company by the Alliance Board. A reason for not Client the alternative
guarantee. accepting the guarantor is that its guarantor.
commercial position is not strong enough
to carry the guarantee.

YES
X4.1
A Partner gives to the Client
an ultimate holding company X4.3
Does the Partner NO
guarantee or a performance
bond if stated in the CD. propose an alternative
guarantor?

X4.2

Flow Charts for the Alliance Contract

YES
If a Partner gives an ultimate holding
Does a company guarantee it gives to the ULTIMATE HOLDING
X4.1
Partner choose to Client a guarantee of the Partner’s COMPANY GUARANTEE
YES Does an ultimate
give to the Client an performance from the ultimate
holding company own NEEDED
ultimate holding company holding company of the Partner in
the Partner?
FLOW CHART

guarantee? the form set out in the Scope.

NO
NO

11.2(11)
CONTRACT The Contract Date is the date
X4.4 when the contract came into
DATE
The Partner gives the Client a performance existence.
PERFORMANCE bond, provided by a bank or insurer which
the Alliance Board has accepted, for the
FLOW CHART X4: PERFORMANCE GUARANTEE

BOND GUARANTEE GIVEN

amount stated in the CD and in the form set
out in the Scope. WITHIN FOUR WEEKS
GUARANTEE Is the X4.2
GIVEN BY guarantee given by NO The guarantee is given to
CONTRACT the Contract the Client within four weeks
DATE? Date? of the Contract Date.
11.2(11)
The Contract Date is the date
CONTRACT DATE when the contract came into YES
existence.
Finish

BOND IS GIVEN
WITHIN FOUR WEEKS
X4.4 X4.4
PERFORMANCE Is the NO The performance bond is
BOND GIVEN BY performance bond given given to the Client within
CONTRACT DATE? by the Contract four weeks of the Contract
Date? Date.

YES SUBMIT BOND YES

PROPOSAL RE-SUBMIT
X4.4

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Does
A reason for not accepting the bank FC 13 NO
REASON FOR the Client accept the The Partner submits
or insurer is that its commercial Submission for acceptance performance bond? an alternative proposal.
NOT ACCEPTING position is not strong enough to carry
the bond.

ACCEPTED?

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 SUBCONTRACTOR
SCOPE
11.2(31)
A SC is a person or organisation who has
11.2(29)
a contract with a member or members of the
Scope is information which
Alliance to Does the

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• specifies and describes the works or X9.1
• construct or install part of the works, Scope contain a
• states any constraints on how the The Client owns the Partner’s RIGHTS
• design all or part of the works, except the statement about the Client NO
Start Alliance Provides the Works rights over material prepared for
design of P&M carried out by the supplier or owning the Partner’s rights over OVER
and is either the design of the works except
• provide a service in the Working Areas material prepared for the MATERIAL
• in the documents which the CD states as stated otherwise in the Scope.
which is necessary to Provide the Works, design of the
it is in or
except for the works ?
• in an instruction given in accordance
– hire of Equipment or
with the contract.
– supply of people paid for by a Partner YES
according to the time they work.

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X9.1
X9.1 The Partner obtains other rights for
The Client owns the Partner’s rights the Client as stated in the Scope EQUIVALENT
over material prepared for the design and obtains from a SC equivalent
of the works except as stated
RIGHTS
rights for the Client over the
otherwise in the Scope. material prepared by the SC.
FLOW CHART

X9.1
The Partner provides to the Client PROVIDE
FLOW CHART X9: TRANSFER OF RIGHTS

the documents which transfer these DOCUMENTS

rights to the Client.

Finish

Flow Charts for the Alliance Contract

79

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 80
INFORMATION MODEL PROJECT INFORMATION INFORMATION PROVIDERS INFORMATION MODEL
COLLABORATION REQUIREMENTS
X10.1(3) X10.1(2) X10.1(5)
X10.3 X10.1(4)
The Information Model is Project Information is Information Providers are
The Alliance collaborates The Information Model Requirements
the electronic integration information provided by the the people or organisations
with other Information are the requirements identified in the
of Project Information in Alliance and other who contribute to the
Providers as stated in the Scope for creating the Information
the form stated in the Information Providers which Information Model and are
Information Model Model.
Information Model is used to create or change identified in the Information
Requirements.
Requirements. the Information Model. Model Requirements.

INFORMATION FIRST PLAN

MODEL X10.4
X10.5(1) A member of the Alliance and the AM
X10.2 If an Information Execution NO Is an Information FC 13 give an early warning by notifying the all
Plan is not identified in the Execution Plan identified Notify other members of the Alliance as soon

Flow Charts for the Alliance Contract

The Alliance creates the CD, the AM issues a first in the CD? as they become aware of any matter
Information Model. Information Execution Plan which could adversely affect the creation
to the Alliance within the or use of the Information Model.
period stated in the CD. YES
EARLY WARNING
FLOW CHART

Start X10.1(1)
The Information Execution Plan
is the information execution plan
or is the latest Information
Execution Plan issued by the AM.
The latest Information Execution
Plan issued by the AM
supersedes the previous
FLOW CHART X10: INFORMATION MODELLING

Information Execution Plan.

COMPENSATION
FORM EVENT USE OF THE MODEL
X10.1(1) X10.5(2) X10.5(3) X10.6 X10.7
The Information Execution Plan The AM revises the Information The Alliance provides If the Information At Completion of the works,
is the information execution plan Execution Plan and issues it to the Project Information Execution Plan is the Alliance gives to the
or is the latest Information the Alliance when the AM or a in the form stated in altered by a CE, the Client the Information
Execution Plan issued by the AM. member of the Alliance the Information AM includes the Model and the Partners’
The latest Information Execution requests that the Information Requirements and in alterations to the rights over Project
Plan issued by the AM Execution Plan is changed and accordance with the Information Execution Information except as
supersedes the previous the AM in consultation with the accepted Information Plan in the quotation stated otherwise in the
Information Execution Plan. Alliance decides to change it. Execution Plan. for the CE. Information Requirements.

INFORMATION REVISED INFORMATION

EXECUTION PLAN EXECUTION PLAN
X10.7
X10.7
The Partners provide
The Partners obtain from
to the Client the
a SC equivalent rights for
documents which
the Client over information
transfer these rights
prepared by the SC.
to the Client.

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 PARTNERS NOT LIABLE
FOR MATTERS AFTER
END OF NOTIFIED IN TIME?
END OF LIABILITY DATE
LIABILITY DATE
X18.1 X18.3

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A matter has arisen Has the
Each of the limits to the NO The Partners are not liable to the
which may make the The end of liability date matter been notified to
Start Partners’ liability in this clause Client for a matter unless details of
Partners liable to the is stated in the CD. the Partners before the
apply if a limit is stated in the the matter are notified to the
Client. end of liability
CD. Partners before the end of liability
date?
date.
YES

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A PARTNER’S TOTAL LIABILITY
UNDER THE CONTRACT

X18.2
FLOW CHART

A Partner’s total liability to the Client for all matters

arising under or in connection with the contract,
other than payments in the Performance Table, is
limited to the amount stated in the CD and applies
in contract, tort or delict and otherwise to the extent
allowed under the law of the contract.
FLOW CHART X18: LIMITATION OF LIABILITY

NO

Is this a
payment in the YES The law of the contract
Finish
Performance is stated in the CD.
Table?

PERFORMANCE
TABLE PAYMENT?

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 82
PERFORMANCE
TABLE SCOPE
11.2(25)
COMPLETION 11.2(29)
The Performance Table includes STAGE ONE AND
BUDGET DATE Scope is information which X22.2
the targets for performance STAGE TWO
• specifies and describes
stated for the Alliance Objectives, The AM submits a proposal for
11.2(6) the works or
sets out the adjustment to 11.2(10) Stage Two to the Alliance
Budget is the items • states any constraints on X22.1
payment if a measured The Completion Date The budget information, Board for acceptance. The
and amounts stated in how the Alliance Provides Stage One and Stage
performance is higher or lower is the completion date works, performance table Alliance does not proceed with
the budget information the Works Two have the
than the target and sets out how unless later changed and completion date are the work in Stage Two until the
unless later changed and is either meanings given to
the adjustments are shared in accordance with all stated in the CD. Alliance Board has accepted it.
in accordance with • in the documents which them in the Scope.
between the Partners. The the contract. The proposal is submitted in
the contract. the CD states it is in or
Performance Table is the accordance with the procedure
• in an instruction given in
performance table unless later stated in the Scope.
accordance with the
changed in accordance with the
contract.
contract.

Flow Charts for the Alliance Contract

Start THE ALLIANCE BOARD REPLY
ALLIANCE
BOARD ACCEPTS ACCEPT? X22.3 X22.2
The Alliance Board
X22.3 • accepts the proposal and issues a The submission includes a
FLOW CHART

Does the forecast of the effect of the

The Alliance Board YES Alliance Board notice to commence Stage Two,
accepts the proposal • instructs the AM to submit a proposal on the
accept the • Scope,
EFFECTS OF QUOTATION and issues a notice to proposal? revised proposal or
commence Stage Two. • does not accept the proposal, for • Budget,
ACCEPTANCE • Performance Table and
any reason, and issues a notice
NO that Stage Two will not proceed. • Completion Date.

REVISED PROPOSAL
X22.4
X22.3 X22.3 The Alliance Board instructs the
Does the
The Alliance Board does not NO Alliance Board instruct YES The Allliance Board AM to submit a revised proposal
accept the proposal, for any
FLOW CHART X22: EARLY ALLIANCE INVOLVEMENT

the AM to submit a instructs the AM to only after explaining the reasons

reason, and issues a notice revised proposal? submit a revised for doing so. The AM submits a
Finish that the works will not proceed. proposal. revised proposal within a time
agreed with the Alliance Board.

X22.7
X22.5
If a notice to commence Stage If the Alliance Board
X22.5
Two is not issued, the AM instructs the AM to submit
X22.5 The AM submits a a revised quotation it
changes the Scope to remove
This change is not quotation for the explains the reasons for
the work required in Stage Two
a CE. change to the Alliance doing so. The AM submits
and assesses the change to the
Board for acceptance. a revised quotation within
• Budget,
• Performance Table and a time agreed with the
• Completion Date. Alliance Board.

ANOTHER PERSON
OR ORGANISATION

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X22.9
If the Alliance Board does not issue a X22.8
notice to commence Stage Two the When a quotation is accepted X22.6
Client may appoint another person or by the Alliance Board the AM YES Does the Alliance NO The Alliance Board
organisation to complete Stage Two changes the Budget, Board accept the instructs the AM to
and can use any material, information Performance Table and quotation? submit a revised
or design which the Alliance has Completion Date accordingly. quotation.
provided.

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 A REFERENCE TO THE WORKS
OCCURS IN THE CONTRACT REFERS ONLY TO
WHOLE OF WORKS
X26.1
X26.1
In these conditions of contract, unless

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Is it stated YES X26.1
stated as the whole of the works, each
Start as applying to the Each such reference and clause
reference and clause relevant to the
whole of the applies to the whole of the works.
works applies, as the case may be, to
works?
either the whole of the works or any
scheme forming part of the works.
NO
X26.2
REFERS TO WHOLE OR If the Client proposes to add a scheme
ANY SCHEME FORMING to the works, it issues to the Alliance
PART OF THE WORKS Board

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SCHEMES • the additional CD to identify the
X26.1 boundaries of the site and access
Each such reference and clause dates for the scheme,
Any schemes forming part • any additional Alliance Objectives
applies, as the case may be, to of the works are stated in
either the whole of the works or and change to the Performance
the CD. Table to meet the requirements of the
any scheme formimg part of the
works. scheme and
FLOW CHART

• additional Scope to add and define

the scheme. The additional Scope
complies with the constraints set out
in the Scope.

SCHEME ADDED ALLIANCE BOARD

TO THE WORKS DECIDES
FLOW CHART X26: PROGRAMME OF WORK

X26.4 X26.3
If the Alliance Board decides to add X26.4 The Alliance Board assesses the
the scheme to the works, it adds Does the change to the Scope, the Budget
YES The boundaries of the site
the additional CD and instructs the Alliance Board decide and Completion Date in
and access dates for the
AM to change the Scope, the to add the scheme accordance with the procedure
scheme are stated in the CD.
Budget, the Completion Date, to the works? stated in the Scope and decides
Alliance Objectives and the whether to add the scheme to the
Performance Table accordingly. works.
NO

Finish

Flow Charts for the Alliance Contract

83

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 84
NAMED SUPPLIERS
Y1.1(1) Y1.1(5)
Named Suppliers are named Joining Deed is an agreement The named suppliers
The project bank is
Start suppliers and other Suppliers in the form set out in the
identified in the CD. are identified in the CD.
who have signed the Joining contract under which the
Deed. Supplier joins the Trust Deed.

SUPPLIERS

Y1.1(3) Y1.12
Y1.3 Y1.2 A Supplier is a person or organisation who The Client, the Partners
The Client pays any The Client establishes the has a contract to TRUST and named suppliers
charges and is paid Project Bank Account with the construct or install part of the works,
DEED sign the Trust Deed
any interest paid by project bank within three weeks provide a service necessary to

Flow Charts for the Alliance Contract

before the first
the project bank. of the Contract Date. Provide the Works or assessment date.
supply P&M for the works.
FLOW CHART

Y1.1(2)
Y1.1(4)
Y1.3 Project Bank Account is the account
The charges and interest Trust Deed is an agreement in the
used to receive payments from the
by the project bank are form set out in the contract which
Client and the Partners to make
included in Client’s Costs. contains provisions for administering
payments to the Partners and Named
the Project Bank Account.
Suppliers.

PROJECT BANK ACCOUNT

Y1.4
Y1.4 The Client provides to the
The Client makes available Alliance Board copies of A
to the Alliance Board details communications with the sheet
of the banking arrangements project bank in connection 2
FLOW CHART Y(UK)1 SHEET 1 OF 3: PROJECT BANK ACCOUNT

for the Project Bank Account. with the Project Bank

Account.

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 NAMED SUPPLIERS
Y1.5 Y1.5 Y1.6 Y1.6
The Partners inform the Named The Partners submit proposals
A The Partners include in their contracts A reason for not accepting
Suppliers of the details of the Project for adding a Supplier to the
sheet with Named Suppliers the arrangements is that the addition of the
Bank Account and the arrangements for Named Suppliers to the AM
1 in the contract for the operation of the

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payment of amounts due under their Supplier does not comply
Project Bank Account and Trust Deed. for acceptance. with the Scope.
contracts.

Does
Does
a Partner submit
YES NO the AM

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ADDING A proposals for adding
X SUPPLIER? accept the Partner’s
a Supplier to the Named
sheet submission?
Suppliers?
3

YES
NO
FLOW CHART

NO
PAYMENT

Is Y1.7
Y1.6
payment due The AM shows in the
application for payment the The Client, the Partner and the
from the Client to Supplier sign the Joining Deed
the Partners? amounts due to Named Suppliers
in accordance with their contracts. after acceptance.

YES

Y1.8
Within the time set out in the banking Y1.9
arrangements to allow the project The Partners and Named Suppliers
bank to make payment to the receive payment from the Project B
Partners and Named Suppliers in Bank Account of the sums set out in sheet
accordance with the contract, the the application for payment as soon 3
Client makes payment to the Project as practicable after the Project Bank
Bank Account of the amount which is Account receives payment.
FLOW CHART Y(UK)1 SHEET 2 OF 3: PROJECT BANK ACCOUNT

due to be paid under the contract.

Flow Charts for the Alliance Contract

85

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 86
B
sheet
2

PAYMENT DUE FROM

PARTNERS TO
Y1.11 CLIENT?
Payments made from the Project Bank Account Y1.10 Is a
EFFECT OF are treated as payments from the Client to the YES payment due X
A payment which is due from a
Partners in accordance with the contract or from from the Partners to sheet
PAYMENT Partner to the Client is not made
the Partners or SC to Named Suppliers in the Client ? 2
through the Project Bank Account.
accordance with their contracts as applicable.
NO

Flow Charts for the Alliance Contract

FLOW CHART

Y1.13
Has a If the AM issues a certificate terminating
termination YES the obligation of all Partners to participate
TERMINATION certificate been in Providing the Works no further Finish
issued by the payment is made into the Project Bank
AM? Account.

NO
FLOW CHART Y(UK)1 SHEET 3 OF 3: PROJECT BANK ACCOUNT

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 DAY TIME PERIOD

Y2.1 Y2.2
In this Option, time periods stated The date on which the final
DEFINITIONS Start
in days exclude Christmas Day, payment becomes due is
Good Friday and bank holidays. five weeks after the issue

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of the Defects Certificate.
ALLIANCE MANAGER’S
NO ASSESSMENT
FINAL DATE FOR PAYMENT
Y2.2 Y2.2
Y2.2 Has the AM The AM’s assessment is the
Y2.2 Y2.2
The final date for payment is fourteen issued a termination notice of payment specifying
The date on which a payment becomes YES The date on which the final
DATES FOR days after the date on which payment certificate terminating the the amount due at the payment
due is seven days after the assessment payment becomes due is
PAYMENT becomes due or a different period for obligation of all the Partners due date (the notified sum,
date. (The latest date for certification under fourteen weeks after the issue
payment if stated in the CD. (The latest to partcipate in which may be zero) and stating

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clause 51.1) of the certificate.
date for payment under clause 51.2) Providing the the basis on which the amount
Works? was calculated.
DUE DATE FOR PAYMENT

PAY LESS NOTICE Y2.4

ACT 1996
FLOW CHART

Y2.3 If the Alliance Board terminates for reason R1 and a payment has not been
If the Client or a Partner intends to pay Y2.3 made at the date of the termination certificate, the Client makes the
NOTICE OF less than the notified sum, they notify the The Client or a Partner do not withhold payment unless
other not later than seven days (the payment of an amount due under the
INTENTION • it has notified the Partner and the AM in accordance with the contract that
prescribed period) before the final date for contract unless it has notified its intention to
TO PAY LESS it intends to pay less than the notified sum or
payment by stating the amount considered pay less than the notified sum as required
• the reason for termination occurred after the last date on which it could
to be due and the basis on which that sum by the contract.
have notified the Partner in accordance with the contract that it intends to
is calculated. pay less than the notified sum.

Y2.4
Y2.4 Did the reason for
Y2.4 Has the termination occur after the
Y2.4
YES Has a payment NO Alliance Board notified the NO last date on which it could have NO
Does the Alliance
been made at the date of AM in accordance with the contract notified the AM in accordance with
Board terminate for
the termination that it intends to pay less the contract that it intends
reason R1?
certificate? than the notified to pay less than the
sum? notified sum?

NO YES YES YES

Y2.4
The Client makes
the payment.

SUSPENSION OF Y2.5
PERFORMANCE If a Partner exercises its right under the
Housing Grants, Construction and
Regeneration Act 1996 as amended by the
Local Democracy, Economic Development
COMPENSATION and Construction Act 2009 to suspend
EVENT performance, it is a CE.
FLOW CHART Y(UK)2 : THE HOUSING GRANTS, CONSTRUCTION AND REGENERATION

Y2.6
ADJUDICATION A member of the Alliance may refer a
Finish dispute to adjudication at any time whether
or not it has been referred to the Alliance

Flow Charts for the Alliance Contract

Board for final resolution.

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 88
RIGHTS OF BENEFICIARIES
TO ENFORCE CONTRACT TERM
Y3.1
A beneficiary may enforce the terms
Start of the contract stated in the CD
under the Contracts (Rights of Third
Parties) Act 1999.

Y3.2
Other than members of the Alliance or
a beneficiary, no person can enforce
any of the terms of the contract under
the Contracts (Rights of Third Parties)

Flow Charts for the Alliance Contract

Act 1999.
FLOW CHART

Y3.3
Is a beneficiary Y3.3
identified by class or YES The Client notifies the
description and not as a Alliance of the name of
named person or the beneficiary once they
organisation? have been identified.

NO

THE BENEFICIARY
CAN ENFORCE
Y3.1 CONTRACT TERM
Is the term and the
IS THE TERM AND person or organisation Y3.1
stated (in the CD or the beneficiary YES
THE THIRD PARTY Term of contract can
has been identified and the Client be enforced under Act.
STATED? has notified the Alliance
or the name)?

NO

THE BENEFICIARY Y3.1

Term of contract cannot Finish
FLOW CHART Y(UK)3: THE CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

CANNOT ENFORCE
be enforced under Act.
CONTRACT TERM

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