NEC Case Law, Clause by Clause · Module 1 · Lesson 4 of 4
The whole agreement
Why it matters
Does a tender remark count once the old foundations turn up?
CE007 paid GBP 81,200 and 7 days. Was the remark a term too?
21 Nov 2025, what if
At tender, Aldermere Water's engineer says the old foundations are gone.
3 Mar 2026
Merrow Vale finds them in the Station Road culvert trench.
Source: ECC 12.4, 60.1(12).
The rule
The written contract is the whole deal, so a tender promise is not a term
The Court of Appeal read such a clause this way in AXA Sun Life (2011).
“The contract is the entire agreement between the Parties” (12.4)
Shut out
Side promises, or collateral warranties.
May survive
An action for misrepresentation, unless clear words exclude it.
Source: ECC 12.4. AXA Sun Life v Campbell Martin (2011).
The rule
A term is implied only when needed, not when fair
Marks and Spencer got no refund of about GBP 200,000 in rent.
- 1
Does an express clause deal with it?
If yes:Apply the clauseIf no, go on to question 2. - 2
Is it needed for business efficacy, or obvious?
If yes:A term is impliedIf no, go on to the outcome. - No termFair is not enough
Source: Marks and Spencer v BNP Paribas (2015). ECC 63.6.
See it on the project
The remark is no term, but the contract has a quicker route
CE007 took nine weeks from find to implementation. A misrepresentation action needs a court case.
- 121 NovWhat ifAldermere Water What if: at the tender meeting, Aldermere Water's engineer says the old Station Road foundations were removed years ago.
- 23 MarFoundMerrow Vale Old concrete foundations found in the culvert trench under Station Road.
- 36 MarNotifiedMerrow Vale Notified as a compensation event for physical conditions (60.1(12)).
- 45 MayCE007 implementedAldermere Water Dana, the Project Manager, accepts the revised quotation. CE007 is implemented at GBP 81,200 and 7 days.
…
Source: ECC 12.4, 60.1(12). AXA Sun Life (2011).
Try it
Decide whether each item is part of the deal, then tap to check
Say yes or no before you tap.
A free compound at Mill Lane, promised at tender?
What the Site Information says about Station Road?
More money for CE007, beyond the change to the Prices?
An order of precedence for the documents?
Source: ECC 11.2(18), 12.4, 17.1, 63.6, 63.10. Marks and Spencer (2015).
Quick check · Try it
Two questions on what you have just covered
Pick an answer to see why.
2 questions to answer
Source: ECC 12.4. Aldermere Contract Data part one. Marks and Spencer (2015).
Recap
Write what matters into the contract, and use the clause that covers it
If it is not in the written contract, do not count on it.
On Monday at work
- Put any tender promise in the Scope or Contract Data (12.4).
- Find the express clause before arguing for an implied term.
- On a site surprise, notify the compensation event.
In the Toolkit: NEC4 Compensation Event Register (ECC and ECS) (Excel) Members
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 12.4, 60.1(12), 63.6.
Go deeper (optional)
Two more points on what the written contract holds
Optional points for later.
Suppose the contract named Merrow Vale's dormant sister company by mistake. Who is the Contractor?
Liberty Mercian v Cuddy (2013)
Can NEC's own guidance help a judge read the ECC?
Investors Compensation Scheme (1997)
Source: Liberty Mercian v Cuddy (2013). Investors Compensation Scheme (1997). ECC 12.3.