NEC Case Law, Clause by Clause · Module 1 · Lesson 2 of 4

Reading the words

8 screensAbout 6 minutes

Why it matters

Must the grass be sown before the embankment is ready for planting?

Dana Whitfield is the Project Manager. A court's reading decides who pays.

Merrow Vale reads it

Planting comes later.

Suppose Dana reads it

The needs grass seed sown too.

Ready on 25 September, five days before Key Date 1, or late?

Source: ECC 25.3. Aldermere Contract Data.

The rule

Words keep their natural meaning, even when the result looks harsh later

Not an NEC case, but ECC time bars are read this way.

GBP 90a chalet's first-year service charge
GBP 550,000a year by 2072, at 10% compounded

The tenants wanted a fair share of costs. Did the agree?

No. It enforced the words as written, however harsh the result by 2072.

Arnold v Britton (2015)

Source: Arnold v Britton (2015). ECC 61.3, 61.4, 62.6.

The rule

A standard form leans on its text, and a hurried Scope on context

Capita's indemnity needed a customer claim or complaint. None came, so no cover.

Northern Ireland Housing Executive v Dixons (2019) applied Wood to NEC3 documents (Module 4).

Source: Wood v Capita (2017). ECC 11.2(16).

The rule

Unclear words are rarely read against their writer, so use the ECC's rules

The gave a very limited role between commercial equals.

Arup's asbestos exclusion was read to cover a negligent failure to find it.

“The Project Manager states how the ambiguity or inconsistency should be resolved” (17.1)

How the ECC settles it
The Scope63.10A change to resolve it is priced on the reading best for the Party that did not provide it
The Site Information60.3For a clash in the , Merrow Vale is assumed to have allowed for the easier conditions
Everything else17.117.1 settles the reading, and the general law decides the rest

Source: Persimmon v Ove Arup (2017). ECC 17.1, 60.3, 63.10.

See it on the project

Read naturally, ready for planting leaves the sowing for later

Had Dana been right about the Condition, Merrow Vale would pay the extra cost on other work on the project (25.3).

Key Date 1, September 2026Merrow Vale meets the Condition on 25 September 2026, five days before Key Date 1 on 30 September.SeptemberOctoberMerrowValeDanaKey Date 11 Condition met2 What if
  1. 125 SepCondition metMerrow Vale The Mill Lane embankment is finished and ready for planting.
  2. 230 SepWhat ifDana What if: Dana decides the Condition also needs sown grass. Read naturally, ready for planting means planting comes later.
125 SepMerrow Vale

…

Source: ECC 25.3. Arnold v Britton (2015). Wood v Capita (2017).

Quick check · Try it

Two questions on what you have just covered

Pick an answer to see why.

Quick checkPick an answer to see if you are right and why
1Merrow Vale says three weeks to quote on CE014 was too short for a busy job. Will a court read 62.3 as a reasonable time?
No, three weeks as written
Yes, a reasonable time for a busy job
Only if Dana agrees to more
2Two borehole logs in the Site Information disagree on the depth to firm ground. What is Merrow Vale assumed to have priced?
The harder of the two
The easier of the two
Whichever log Dana prefers

2 questions to answer

Source: ECC 60.3, 62.3. Arnold v Britton (2015).

Try it

Sort each argument to the case that answers it

Five arguments you could hear on a real job. Each answer says why.

Argument 1 of 5

…

Source: ECC 17.1, 61.4, 62.6, 63.10. Arnold (2015). Wood (2017). Persimmon (2017).

Recap

Start from the words, then the context, then the ECC's own tie-breakers

Habits that keep you out of arguments these cases settled.

On Monday at work

  • Plan to meet each time bar (61.3) as written.
  • Read a hurried Scope line with the facts both sides knew.
  • Notify an unclear entry under 17.1, not hope it goes your way.

In the Toolkit: NEC4 ECC Notice Letters (zip) Members

Next lesson: Changing the contract

Your place is kept in this browser. Create a free account to keep it on every device.

Independent course material. It is not published or endorsed by NEC, and it is not legal advice. Clause references are to the NEC4 Engineering and Construction Contract, June 2017 with amendments January 2023. Cases decided under an earlier edition are matched to the NEC4 clause that does the same job. The worked examples and their people are invented. Short quotes from NEC4 (© NEC 2017) and the FIDIC Red Book (© FIDIC 2017) are used for review and comment. Read the full clauses in your own copy of the contract.

Source: ECC 17.1, 61.3, 63.10.

Go deeper (optional)

Notify an ambiguity at once

Copy it, then fill the gaps.

What to writeNotice under clause 17.1

To: Dana Whitfield, Project Manager

Date: [date]

We notify an ambiguity or inconsistency (17.1).

Where: [entry]

It reads as [one] or [another].

Please state how to resolve it.

[name], Merrow Vale

In the Toolkit: Letter 07, ECC Notice Letters

Source: ECC 17.1, 63.10.

Go deeper (optional)

Earlier cases set the frame, and one point is open

Optional points for later.

Do the tender talks help a court read the contract?

Not the negotiations. Facts both sides knew still count.

ICS (1997)

An entry reads two ways. Which reading may a court prefer?

The one that fits business common sense.

Rainy Sky (2011)

Is a Z clause read against the Client that wrote it?

Unsettled. Persimmon says rarely, but Triple Point (2021) asks for clear words to cut valuable rights (Module 12).

Open question

Source: Investors Compensation Scheme (1997). Rainy Sky (2011).