Employer’s Termination under NEC3 vs NEC4 (Core 90–93, plus X11 in NEC4)
In NEC4 the Employer is renamed the Client. I’ll say Employer/Client where it helps both editions read smoothly. We’ll walk clause-by-clause—with friendly commentary, practical tips, and “what-if” scenarios—so you can use these rules, not just read them. 🙂
1️⃣ Purpose of 90–93 (and why these clauses exist)
What these clauses do (in one breath):
They govern how the Employer/Client can end the Contractor’s obligation to Provide the Works, when a valid reason exists, who signs what (the Project Manager’s termination certificate), what physically happens on site (the Procedures P1–P4), and how the final money is calculated (the Amounts A1–A4). In both editions, termination starts with notice and a PM certificate under 90.1 and 90.3—the gate you must pass through before any P- or A-steps kick in.
Why it matters to each party:
- Employer/Client: Clear pathways to end the contract for insolvency, serious default, prolonged stop, prevention, etc.—and to finish the works using the Contractor’s Plant/Equipment where allowed.
- Contractor: Protected routes to terminate when the Employer/Client doesn’t pay within thirteen weeks or issues prolonged stop/not-start instructions not lifted for thirteen weeks—with payment recipes designed to recover proper costs.
NEC3 → NEC4: the big policy shift (historical context):
- In NEC3, 90.2 gave the Employer power to terminate “for any reason” (i.e., convenience) as a core right via the Termination Table.
- In NEC4, that at-will right is removed from the core; termination for a reason not in the Table exists only if Secondary Option X11 is chosen (“Termination by the Client”)—and it tells you exactly which procedures and amounts apply (P1 + P2; A1, A2, A4).
- NEC4 also adds R22 (Corrupt Act) with a subcontractor carve-out if the Contractor neither knew nor reasonably should have known and acted to stop it.
Key takeaway: In NEC4, convenience termination is opt-in (via X11). If you want it, you must select X11—and you accept its payment consequences.
2️⃣ Breakdown of the Clauses (with close-to-text summaries)
A) Clause 90 — The gate and the Table
- 90.1: A party wishing to terminate notifies the PM and the other Party with reasons; the PM issues a termination certificate promptly if the reason complies with the contract. (This is identical in spirit across NEC3 and NEC4.)
- 90.2:
- NEC3: “The Contractor may terminate only for a reason in the Table. The Employer may terminate for any reason.” The Table then maps Reasons (R-codes) to Procedures (P1–P4) and Amounts (A1–A4).
- NEC4: Both Parties “may terminate for a reason identified in the Table”—no general convenience in the core. (If you want convenience → X11.)
- 90.3–90.4: Once the PM issues the certificate, procedures are implemented immediately, and the Contractor stops doing further work necessary to Provide the Works. NEC4 also adds a nuance allowing the Client to withhold a certified payment if termination is for R1–R15, R18, or R22 (unless the conditions state otherwise).
B) Clause 91 — Reasons for termination (R-codes)
- Insolvency (R1–R10): Either Party may terminate if the other suffers specified bankruptcy/insolvency events (individual or company variants listed).
- Contractor defaults (R11–R15): Employer/Client may terminate if the Contractor fails to correct certain defaults within four weeks (e.g., substantial non-compliance, missing bond/guarantee, unaccepted Subcontractor), or fails to stop defaults (hindering Employer/Client or serious H&S breach) within four weeks.
- Non-payment (R16): Contractor may terminate if the Employer/Client fails to pay within thirteen weeks of the payment due/certified date.
- Release by law (R17): Either Party may terminate if both are released by law from further performance.
- Prolonged stop/not-start (R18–R20): After the PM instructs to stop or not start substantial work and no restart/removal instruction is given for thirteen weeks, termination rights arise—allocation depends on whose default triggered the stop (Employer/Contractor/other reason).
- Prevention (R21): Employer/Client may terminate where an event stops completion or **delays planned Completion by > thirteen weeks, which neither Party could prevent and which a prudent contractor would have judged extremely unlikely at Contract Date.
- Corrupt Act (R22, NEC4 only): Client may terminate for a Corrupt Act, except where it was by a subcontractor/supplier and the Contractor neither knew nor reasonably should have known or promptly informed the PM and acted to stop it.
C) Clause 92 — Procedures on termination (P-steps)
- P1: Employer/Client may complete the works and use Plant/Materials to which it has title.
- P2: Employer/Client may instruct the Contractor to leave site, remove Equipment/Plant/Materials, and assign the benefit of subcontracts related to performance.
- P3: Employer/Client may use Contractor’s Equipment (title with Contractor) to complete; Contractor removes it when no longer required.
- P4: Contractor leaves the Working Areas and removes Equipment.
D) Clause 93 — Payment on termination (A-amounts)
- A1 (always included): Amount due as for normal payments + Defined Cost for Plant/Materials on site or to which Employer/Client has title and must accept delivery + other Defined Cost reasonably incurred in expectation of completing + retention adjustments − un-repaid advance balances.
- A2: Forecast Defined Cost of removing Equipment.
- A3: Deduction of the forecast additional cost to Employer/Client of completing the whole of the works (applies on Contractor default cases).
- A4: Fee percentage applied to the defined “excess” (wording varies by option, same concept in NEC3/4).
Termination Table (both editions): maps who terminates + which reason → which P-steps & A-amounts. (NEC4 core omits “any reason”; X11 reinstates it, explicitly calling P1+P2 and A1, A2, A4.)
3️⃣ Key interpretations & implications (what experienced teams watch)
- The “gatekeeper” effect of 90.1/90.3:
No PM certificate, no implementation. This means your notice quality and evidence pack (dates, R-code pathway, cure notices, etc.) are critical. - Cure periods & bright lines:
- R11–R15 rely on a four-week cure/stop window after PM notice;
- R18–R20 and R21 pivot on thirteen weeks.
These are objective timers—log PM notifications and restart instructions meticulously.
- Convenience termination migrated (NEC3 → NEC4):
If you don’t select X11 in NEC4, there’s no at-will basis. If you do select X11, you’re committing in advance to P1+P2 and A1, A2, A4—which is typically more generous than default-based routes (no A3 deduction). - R22 (Corrupt Act) fairness tweak (NEC4):
The carve-out avoids automatic Contractor termination for a subcontractor’s corrupt act if the Contractor neither knew nor should have known, or promptly notified and acted to stop it. Draft and enforce an anti-corruption protocol and subcontract flow-downs. - Cashflow nuance at 90.3 (NEC4):
The Client may withhold a certified payment if termination is for R1–R15, R18, or R22, unless the conditions say otherwise—plan your payment cycle around this risk.
Interpretative question: Can we treat convenience termination as implied in NEC4 if the Table is silent?
Short answer: No—you must **opt-in via X11, which explicitly says “a reason not identified in the Termination Table” and hardwires P1+P2/A1+A2+A4.
4️⃣ Cross-referencing that actually helps in practice
- PM stop/not-start instructions → 91.6
Your R18–R20 rights are born from a PM stop/not-start instruction that isn’t lifted or converted to a scope removal within thirteen weeks. Keep a register of those instructions with dates and reasons (was it Employer/Client default, Contractor default, or “other”?), because that determines who can terminate. - Payment machinery still applies:
Final assessment/payment on termination runs through 93 (amounts due) and the usual 50–53 payment mechanics framework for the project—so mind your Defined Cost evidence trail. (See NEC4 contents showing 50–53 payment section; clause 93 sits right under Termination.) - Title & use of Plant/Equipment:
Termination procedures P1–P3 hinge on who has title to Plant/Materials/Equipment and whether the Employer/Client can use them to complete. Make sure your title and marking clauses (Section 7) and equipment registers are up to date.
5️⃣ What-If Scenarios (with clause cues)
- Performance slipping; PM issues a default notice; no fix in four weeks
- R11–R13/R14–R15 pathway → Employer/Client may terminate. Expect P1 + (P2/P3 as Table dictates) and A1 + A3 (A3 = deduction for forecast extra completion cost). Keep contemporaneous records to justify the A3 deduction.
- Client rethinks design; PM “stop” instruction lingers thirteen weeks, reason is Employer default
- Contractor has R19 termination right. Payment likely includes A1 + A2 + A4 (no A3 deduction). Ensure Equipment removal is captured under A2 and “expectation costs” under A1 are well-evidenced.
- Major unforeseen event (Prevention) forecasts > thirteen weeks delay
- Employer/Client can invoke R21. Consider whether X11 convenience (if selected) produces a commercially “softer” outcome than R21 (e.g., avoiding A3).
- Subcontractor pays a bribe; Contractor promptly informs PM and acts to stop it
- In NEC4, R22 may not bite if the Contractor meets the knowledge/action carve-out. This is why anti-corruption clauses and training matter.
- Client loses appetite (no Contractor default)
- NEC3: Employer could rely on 90.2 “for any reason” right.
- NEC4: Only possible if X11 is selected; otherwise no convenience basis exists.
6️⃣ Suggestions for clarity & improvement (drafting tips / Z-clauses)
- Declare your policy on convenience (NEC4):
If you want at-will termination, select X11 and mirror its recipe: explicitly restate P1 + P2 and A1, A2, A4 to avoid later debate. Consider adding a demobilisation schedule and cap/definition for “Materials on order” and cancellation costs under A1. - Cure notice choreography (R11–R15):
Define format, content, and delivery of PM default notices; specify how to evidence “substantial failure” and how “stopped defaulting” will be measured. Diary the four-week expiry date in the contract administration plan. - Stop/not-start register (R18–R20):
Keep a single running log of stop instructions and reasons, so the thirteen-week clock and culpability are crystal-clear. This defuses disputes about who earned the termination right. - Equipment & title hygiene (P1–P3):
Maintain current equipment/plant registers stating title, location, and readiness for P3 use; include insurance/indemnity arrangements if Employer/Client uses Contractor’s Equipment to complete. (P1–P3 are permissive powers—make their operation frictionless.) - R22 compliance (NEC4):
Insert anti-corruption undertakings and prompt reporting obligations in subcontracts; require evidence of subcontractor training. This ensures you fall within the R22 carve-out if the worst happens. - Payment playbook under 93:
Pre-agree evidence standards for Defined Cost, Forecasts (A2/A3), and the Fee % basis (A4). Align these with your main option (A–F) so the A4 “excess” definition is unambiguous.
7️⃣ Final takeaways (for your site notes)
- NEC3 core gave the Employer “for any reason” termination (90.2). NEC4 core removes it; X11 is the only route for convenience. That’s the single biggest shift.
- The Termination Table is king: it maps R-reason → P-procedure → A-amounts. Learn the table, and you’ll predict cash outcomes.
- Watch the timers: four weeks to cure/stop a default; thirteen weeks for prolonged stop and prevention. They’re bright lines—log your dates.
- Evidence beats opinion: termination success turns on clean notices, documented reasons, and auditable Defined Cost files for 93.
A few reflective prompts 💭
- Can it be read that Employer/Client convenience is implied in NEC4 without X11? No—you must opt in with X11.
- Is A3 always in play? No—A3 (deduction for extra completion cost) is linked to Contractor default routes; convenience (X11) and Employer-fault routes typically omit A3. Check your Table row.
- Could a subcontractor’s bribe automatically sink the Contractor (NEC4)? Not automatically—the R22 carve-out may protect the Contractor if it couldn’t have known or acted fast to stop it.
Employer’s Termination — Sample Letters (Core 90–93 & NEC4 X11)
Use these templates with the right sequence: Notice → PM Certificate → Procedures 92 → Amounts 93. Clause timers like four weeks and thirteen weeks are signposted.
Quick Autofill
Tip: Click Set variables to auto-replace placeholders on copy. Placeholders look like {{Employer}}, {{Contractor}}.
1) PM Notice of Contractor Default — start the four weeks cure (Clause 91 R11–R15)
{{Today}}
To: {{Contractor}}
Cc: {{Employer}} (Employer/Client)
From: {{PM}} (Project Manager)
Project: {{Project}} | Contract No.: {{ContractNo}} | Contract Date: {{ContractDate}}
Subject: Notice of Contractor Default and Requirement to Remedy — Clause 91 (R11–R15)
Dear Sirs,
Under Clause 90.1 and Clause 91, this is a notice that the following default(s) have occurred:
• [Describe the failure precisely: e.g., failure to provide the Performance Bond / substantial failure to comply with the Works Information / serious health & safety breach.]
• [Reference evidence: dates, instructions, meetings, photographs, test results, etc.]
You are required to stop defaulting and/or correct the default(s) within four weeks of receipt of this notice (Clause 91, R11–R15). Please submit a corrective action plan within seven days, with dates, responsible persons, and verification steps.
If the default(s) are not stopped/corrected within four weeks, the Employer/Client may proceed to termination in accordance with Clauses 90–93.
This notice is issued under the contract’s communication provisions. All rights are reserved.
Yours faithfully,
{{PM}}
Project Manager
This letter creates the Clause 91 precondition for Employer/Client termination for default.
2) Employer/Client — Notice of Termination for Contractor Default (post-cure) — Clauses 90.1–90.3, 91 R11–R15, 92–93
{{Today}}
To: {{Contractor}}
Cc: {{PM}} (Project Manager)
From: {{Employer}} (Employer/Client)
Project: {{Project}} | Contract No.: {{ContractNo}} | Contract Date: {{ContractDate}}
Subject: Notice of Termination — Contractor Default not remedied (Clauses 90.1–90.3, 91 R[11–15], 92–93)
Dear Sirs,
We refer to the Project Manager’s notice of default dated [date] under Clause 91 (R[11–15]). The default(s) were not stopped/corrected within the required four weeks.
Accordingly, under Clause 90.1 we hereby give notice to terminate the Contractor’s obligation to Provide the Works for the reason stated (Clause 91, R[11–15]). We request the Project Manager to issue the termination certificate promptly in accordance with Clause 90.1/90.3.
Upon certification, the procedures under Clause 92 and the amounts due under Clause 93 applicable to this reason will be implemented. In particular, we will proceed on the basis set out in the Termination Table for R[11–15], which includes the deduction of the forecast additional cost to complete by others (Amount A3).
Please secure the Works and cooperate with site handover and records transfer as instructed by the Project Manager.
This notice is served under the contract’s communication provisions. All rights and remedies are reserved.
Yours faithfully,
{{Employer}}
Employer/Client
3) Employer/Client — Notice of Termination for Insolvency — Clause 91 (R1–R10) & Clauses 90–93
{{Today}}
To: {{Contractor}} [and the appointed insolvency office-holder]
Cc: {{PM}} (Project Manager)
From: {{Employer}} (Employer/Client)
Project: {{Project}} | Contract No.: {{ContractNo}}
Subject: Notice of Termination — Insolvency Event (Clause 91 R[1–10]; Clauses 90–93)
Dear Sirs,
An insolvency event under Clause 91 (R[1–10]) has occurred, evidenced by [copy of court/administrator/bankruptcy filing dated …].
Under Clause 90.1 we give notice to terminate the Contractor’s obligation to Provide the Works for this reason and request the Project Manager to issue the termination certificate promptly under Clause 90.1/90.3.
Following certification, we will implement the procedures under Clause 92, including securing the site, taking title/possession of Plant and Materials where applicable, and arranging completion by others. The assessment of the amount due will be made under Clause 93 as stated in the Termination Table for this reason.
Please arrange an orderly handover of keys, records, design data, and consents.
Yours faithfully,
{{Employer}}
Employer/Client
4) Employer/Client — Notice of Termination for Prevention — Clause 91 (R21) after thirteen weeks
{{Today}}
To: {{Contractor}}
Cc: {{PM}} (Project Manager)
From: {{Employer}} (Employer/Client)
Project: {{Project}} | Contract No.: {{ContractNo}}
Subject: Notice of Termination — Prevention Event (Clause 91 R21; Clauses 90–93)
Dear Sirs,
A prevention event has occurred which stops completion or is forecast to delay planned Completion by more than thirteen weeks (Clause 91, R21). Evidence is set out in the attached programme analysis and contemporaneous records.
Under Clause 90.1 we give notice to terminate for this reason and request the Project Manager to issue the termination certificate promptly under Clause 90.1/90.3.
Upon certification, we will implement Clause 92 procedures and assess the amount due under Clause 93 as per the Termination Table row for R21.
Yours faithfully,
{{Employer}}
Employer/Client
5) NEC4 — Client Termination for Convenience (Option X11) — reason not in the Table
{{Today}}
To: {{Contractor}}
Cc: {{PM}} (Project Manager)
From: {{Employer}} (Client)
Project: {{Project}} | Contract No.: {{ContractNo}}
Subject: Notice of Termination for Convenience — NEC4 Option X11 (Clauses 90–93)
Dear Sirs,
Option X11 applies. We hereby give notice under Clause 90.1 to terminate the Contractor’s obligation to Provide the Works for a reason not identified in the Termination Table (Option X11). We request the Project Manager to issue the termination certificate promptly pursuant to Clause 90.1/90.3.
Following certification, the procedures and amounts specified for Option X11 will apply (typically Procedures P1 + P2 and Amounts A1, A2, A4). Please coordinate demobilisation, removal of Equipment, records transfer, and the delivery/assignment of materials on order.
This notice is served under the contract’s communication provisions. All rights are reserved.
Yours faithfully,
{{Employer}}
Client
NEC4 core has no at-will right; it exists only if X11 is selected.
6) NEC3 — Employer Termination “for any reason” — Clause 90.2
{{Today}}
To: {{Contractor}}
Cc: {{PM}} (Project Manager)
From: {{Employer}} (Employer)
Project: {{Project}} | Contract No.: {{ContractNo}}
Subject: Notice of Termination — Employer’s right “for any reason” (Clause 90.2 & Clauses 92–93)
Dear Sirs,
Under Clause 90.2 the Employer may terminate for any reason. We hereby give notice under Clause 90.1 to terminate the Contractor’s obligation to Provide the Works on this basis and request the Project Manager to issue the termination certificate promptly in accordance with Clause 90.1/90.3.
After certification, we will implement the procedures under Clause 92 and assess the amount due under Clause 93 in accordance with the Termination Table row for Employer termination under Clause 90.2.
Please cooperate with demobilisation, site handover, and records transfer as instructed by the Project Manager.
Yours faithfully,
{{Employer}}
Employer
7) Project Manager — Termination Certificate (Clauses 90.1/90.3)
{{Today}}
To: {{Employer}} (Employer/Client) and {{Contractor}} (Contractor)
From: {{PM}} (Project Manager)
Project: {{Project}} | Contract No.: {{ContractNo}}
Subject: Termination Certificate — Clauses 90.1/90.3
I, the Project Manager, certify that a reason for termination under Clause 91 [or Option X11 (NEC4) / Clause 90.2 (NEC3)] applies, namely: [state the reason/R-code].
Accordingly, the procedures under Clause 92 are to be implemented immediately and the amount due will be assessed under Clause 93 in accordance with the applicable row in the Termination Table.
Signed:
{{PM}}
Project Manager
Issue promptly once the reason is established.
8) Project Manager — Instruction to Stop / Not Start (Clause 34) — starts the thirteen weeks clock
{{Today}}
To: {{Contractor}}
Cc: {{Employer}} (Employer/Client)
From: {{PM}} (Project Manager)
Project: {{Project}} | Contract No.: {{ContractNo}}
Subject: Instruction to Stop / Not Start Work — Clause 34 (administrative register for potential R18–R20)
You are instructed to [stop / not start] the following work: [describe scope/areas]. The reason is: [Employer default / Contractor default / other reason]. Record this in the stop/not-start register. This instruction does not of itself terminate the Contract.
Unless withdrawn or replaced within thirteen weeks, this instruction may give rise to termination rights under Clause 91 (R18–R20), depending on culpability per the Termination Table.
Please secure the Works and mitigate costs. Confirm receipt and your protective measures within 48 hours.
Yours faithfully,
{{PM}}
Project Manager
9) Contractor — Notice of Termination for Non-Payment (Clause 91 R16 after thirteen weeks)
{{Today}}
To: {{Employer}} (Employer/Client)
Cc: {{PM}} (Project Manager)
From: {{Contractor}} (Contractor)
Project: {{Project}} | Contract No.: {{ContractNo}}
Subject: Notice of Termination for Non-Payment — Clause 91 (R16); Clauses 90–93
We refer to the unpaid certified amount(s) due on [dates], remaining unpaid for more than thirteen weeks. Under Clause 90.1 we give notice to terminate for the reason in Clause 91 (R16) and request the Project Manager to issue the termination certificate promptly under Clause 90.1/90.3.
Following certification, the procedures under Clause 92 and the amount due under Clause 93 will be applied as per the Termination Table for this reason.
Yours faithfully,
{{Contractor}}
Contractor
Service & Attachments Aide
- Serve through the contract’s communication clause (portal/courier/email as specified). Keep proof of service.
- Annex evidence: default file, programme analysis, stop/not-start register, insolvency evidence, payment schedule, title & equipment registers.
- On certification, prepare the P-step plan (Clause 92) and the A-amounts working papers (Clause 93).
Employer’s Termination Checklists — Core **90–93** (plus **X11** in NEC4)
Friendly, clause-cued lists you can actually use. Timers like **four weeks** and **thirteen weeks** are highlighted where they drive decisions.
NEC3: Employer may terminate “for any reason” under **90.2**
NEC4: Convenience termination only if **X11** is selected
1) Gate & Notice — **90.1–90.3**
No Project Manager certificate = no termination. Use this pre-check to avoid a false start.
| Action / Question | NEC3 cue | NEC4 cue | Notes / Evidence | Done |
|---|---|---|---|---|
| Have we served a clear written notice to terminate stating the reason and the R-code (where applicable)? | Core **90.1** | Core **90.1** | Attach notice, service proof, dates. | |
| Has the Project Manager issued a termination certificate promptly, confirming the reason applies? | Core **90.1** | Core **90.1** | File the PM certificate; log date/time. | |
| Are we ready to implement the applicable Procedure (P1–P4) immediately upon certification? | See **92** | See **92** | Identify which P-step your Table row calls. | |
| Have we planned the final assessment under **93** (Amounts A1–A4) and evidence trail for Defined Cost/Forecasts? | Core **93** | Core **93** | Set up a scheduler and cost file index. |
2) Reason Validation — **91** (R-codes)
Confirm the right to terminate exists before you lean on procedures and payment rules.
| Reason family | NEC3 cue | NEC4 cue | Proof to capture | Done |
|---|---|---|---|---|
| Insolvency events (R1–R10) | Core **91** R1–R10 | Core **91** R1–R10 | Public filings; administrator letters; PM record. | |
| Contractor default & not remedied within **four weeks** (R11–R15) | Core **91** R11–R15 | Core **91** R11–R15 | PM default notice; cure end date; evidence of non-cure. | |
| Employer/Client non-payment for **thirteen weeks** (R16) — Contractor’s right | Core **91** R16 | Core **91** R16 | Payment certificate; due date; bank statements. | |
| Release by law (R17) | Core **91** R17 | Core **91** R17 | Statute/court order; legal memo. | |
| Stop/not-start persists **thirteen weeks** (R18–R20) | Core **91** R18–R20 | Core **91** R18–R20 | Original PM stop instruction; log of reminders; day-count register. | |
| Prevention event delays Completion by > **thirteen weeks** (R21) | Core **91** R21 | Core **91** R21 | Programme impact analysis; contemporaneous records. | |
| Corrupt Act (R22) — NEC4 only (with subcontractor carve-out) | n/a | Core **91** R22 | Investigation notes; prompt PM notice; steps taken to stop. |
3) Contractor Default Cure Path — **R11–R15** (the **four weeks** drill)
| Step | NEC3 cue | NEC4 cue | Proof / How we show it | Done |
|---|---|---|---|---|
| PM issues a default notice describing the failure and the required remedy. | Core **91** (R11–R15) | Core **91** (R11–R15) | Copy of notice; service proof; date time-stamped. | |
| Diary the end of the **four weeks** cure period. | Timer | Timer | Calendar entry; reminder alerts shown. | |
| Collect evidence of non-cure or continued default. | Evidence | Evidence | Photos, site reports, QA logs, correspondence. | |
| Confirm the Table row → P-steps and A-amounts for an R11–R15 termination. | Table → **92**, **93** | Table → **92**, **93** | Expect A3 deduction (forecast extra completion cost). |
4) Non-payment — **R16** (Contractor’s right after **thirteen weeks**)
| Question | NEC3 cue | NEC4 cue | Evidence | Done |
|---|---|---|---|---|
| Is the sum certified and overdue by at least **thirteen weeks**? | Core **91** R16 | Core **91** R16 | Certificates; payment schedule; bank statements. | |
| Has the Contractor given a clear termination notice referencing **R16**? | Notice | Notice | Notice copy; service proof. |
5) Stop/Not-start & Prevention — **R18–R21** (the **thirteen weeks** clock)
| Step | NEC3 cue | NEC4 cue | Records to maintain | Done | |||
|---|---|---|---|---|---|---|---|
| Maintain a stop/not-start instruction register with dates and reasons. | Core **91** R18–R20 | Core **91** R18–R20 | Copy of PM instructions; running day counts. | ||||
| Assess whether delay to planned Completion will exceed **thirteen weeks** (Prevention, R21). | Core **91** R21 | Core **91** R21 | Programme analysis; risk log; expert note if needed. | Table mapping | Table mapping | Board paper; PM rationale; correspondence trail. |
6) NEC4 Option **X11** — Termination for Convenience (if selected)
In NEC4, at-will termination lives in X11. If it’s not selected, there’s no core convenience right.
| Question | NEC3 cue | NEC4 cue | Notes | Done |
|---|---|---|---|---|
| Is X11 expressly selected in Contract Data? | NEC3 had core “any reason” under **90.2** | X11 applies | Screenshot/scan Contract Data Part one. | |
| Have we confirmed X11’s P-steps and A-amounts (usually P1+P2 and A1, A2, A4)? | n/a | X11 mapping | Note that A3 deduction (extra completion cost) generally doesn’t apply on convenience. | |
| Do Z-clauses cover demobilisation, cancellation of materials on order, IP/design use, and data handover? | Z-clauses | Z-clauses | Attach Z-clause pack; ensure flow-down to subs. |
7) Procedures on Termination — **92** (P1–P4)
| Procedure | NEC3 cue | NEC4 cue | What to line up | Done |
|---|---|---|---|---|
| P1 — Employer/Client completes the works; uses Plant/Materials with title. | Core **92** | Core **92** | Title register; site access; completion strategy; insurance cover. | |
| P2 — Contractor leaves; removes Equipment/Plant not owned by Employer; assignments. | Core **92** | Core **92** | Vacate plan; security; assignment notices; IP/data handover list. | |
| P3 — Employer/Client may use Contractor’s Equipment to complete (then Contractor removes it). | Core **92** | Core **92** | Insurance, indemnity, operating competence, redelivery condition report. | |
| P4 — Contractor leaves Working Areas and removes Equipment. | Core **92** | Core **92** | Gate pass plan; waste management; H&S close-out. |
8) Amounts Due — **93** (A1–A4)
| Amount | NEC3 cue | NEC4 cue | What to include / expect | Done |
|---|---|---|---|---|
| A1 — Normal assessment items + Defined Cost of Plant/Materials to which Employer/Client has title; reasonable costs incurred in expectation of completing; retention/advance adjustments. | Core **93** | Core **93** | Evidence pack; materials on order; cancellation charges policy. | |
| A2 — Forecast Defined Cost of removing Equipment. | Core **93** | Core **93** | Demobilisation plan; third-party quotations; schedule. | |
| A3 — Deduction for Employer/Client’s forecast additional cost to complete (applies to Contractor default rows). | Core **93** | Core **93** | Market test; like-for-like scope; prudent basis; approval trail. | |
| A4 — Fee % application to defined “excess” as per main option. | Core **93** | Core **93** | Check Option (A–F); align with Contract Data; avoid double counting. |
9) Communications & Records — admin that wins disputes
| Item | NEC3 cue | NEC4 cue | What good looks like | Done |
|---|---|---|---|---|
| Service of notices (termination, default, stop, etc.) under the contract’s communication clause. | Core comms | Core comms | Follow form/method; keep courier/portal logs; time stamps. | |
| Programme & day-count registers for **four weeks** and **thirteen weeks** gates. | Timers | Timers | Single source register; reviewed weekly. | |
| Title & equipment registers (enabling P1–P3 smoothly). | Core **92** | Core **92** | Serial numbers; location; condition; insurance position. | |
| Defined Cost evidence index (for A1–A2) and forecasting method memo (for A3). | Core **93** | Core **93** | Folder structure; named owner; version control. |
10) Risk Controls & Z-Clauses (optional but smart)
| Control | NEC3 cue | NEC4 cue | Practical implementation | Done |
|---|---|---|---|---|
| Anti-corruption protocol & flow-down (helps with NEC4 R22 carve-out). | n/a | Core **91** R22 | Training; reporting hotline; contract obligations on subs. | |
| Convenience playbook (only if X11): demob schedule; cancellation policy; IP & data handover. | NEC3 had **90.2** “any reason” | X11 | Z-clause pack; template letters; procurement standby plan. | |
| Completion-by-others sourcing & assurance (for P1 and A3 forecasting). | Core **92**, **93** | Core **92**, **93** | Market soundings; framework lots; QA/HS&E vetting. |
Tip: Pair these checklists with a one-page flow (Notice → PM Certificate → 92 P-steps → 93 A-amounts). Happy administering! 🎯