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NEC3: The problem with Z clauses by Daniel Campbell

July 20, 2015

NEC3: THE PROBLEM WITH Z CLAUSES

“The issue all users can face is that if a Z clause if wrongly inserted, it can make the contract ambiguous” – Rekha Thawrani, General Manager for NEC.

 

The statement above is indicative of most NEC3 contract use today. The statement presents two problems in effect; firstly the use of a Z clause and secondly the incorrect use of a Z clause. The effects of wrongly inserted Z clauses are well known but in this article I will highlight some of the main problems and suggest ways to avoid the incorrect use of them or how to refrain from using them at all.

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