NEC4 KNOWLEDGE QUIZ
A light-hearted quiz on how well you know NEC4
As a commercial director who works across marine civils, piling, construction and consultancy, I’ve had the privilege of working with commercial professionals at every stage of their journey, from apprentices and new graduates just discovering the NEC, to highly experienced project managers and commercial leads who’ve delivered major frameworks and complex civil engineering projects.
One thing has become very clear over the years. Our industry is full of brilliant people, but our understanding of NEC4 varies considerably from one person to another. That’s totally understandable, because the NEC4 contract suite is vast, nuanced and continuously being refined in practice and guidance. Even highly experienced practitioners can interpret clauses differently, or fall into well-known traps; forecasting under clause 20.4, understanding dividing dates, identifying working areas correctly, navigating X-option compatibility and interpreting Z-clause amendments.
Understanding the subtleties of NEC4 is essential to competent project delivery and misinterpretations often drive disputes, rework and commercial risk. So here’s something light-hearted but genuinely useful; how well do you know your NEC? A short quiz designed to give junior members confidence, challenge experienced hands and maybe even settle a few office debates.
Good luck – and no cheating!
Q1: Working areas (NEC4 update)
According to NEC4, working areas are only those areas that are:
A. Anywhere the contractor or subcontractors carry out work.
B. The site and areas necessary for providing the works and used only for the contract.
C. All project-related locations, including head office support.
D. Any area the contractor selects for operational convenience.
Q2: Working from home (WFH) costs
Under the NEC4 guidance on working areas, costs for staff working from home:
A. Are always part of defined cost.
B. Are excluded unless the home is listed in the working areas.
C. Must be added to the fee.
D. Are only payable if Z-clauses explicitly allow it.
Q3: Dividing date
The dividing date is:
A. The date the compensation event (CE) is implemented.
B. The date the employer first knows of the event.
C. The date the project manager instructs or notifies a CE.
D. The date the contractor submits a quotation.
Q4: Option A vs option C – pain/gain
Under option C:
A. Contractor carries full risk for overruns.
B. Early warnings don’t apply.
C. Pain/gain share applies based on the difference between defined cost and the target.
D. CE assessments are ignored in the target.
Q5: Option A defined cost
Under option A:
A. Defined cost is irrelevant.
B. Defined cost matters only for CEs.
C. Defined cost is the basis of all payment.
D. Defined cost is the target for pain/gain.
Q6: Secondary options: X1 (price adjustment for inflation)
X1 can only be used with which main options?
A. Any option.
B. Only options C and D.
C. Options A, B, C, D (not E or F).
D. Only option F.
Q7: Activity schedule (option A)
Under NEC4 option A, items in the activity schedule:
A. Can be changed by the contractor to match its actual cost build-up.
B. Are re-measured monthly like a bill of quantities.
C. Are adjusted automatically if the contractor’s costs increase.
D. Must match the scope and be priced as a lump sum for each activity.
Q8: Compensation events (change to painting requirements)
A client changes the painting requirement from two coats to three coats. Under NEC4 rules, how should the CE quotation be prepared?
A. By adding a standard allowance for head-office overheads on top of the rates.
B. By excluding any impact on labour productivity.
C. By using the tendered bill of quantities rates exactly as priced at tender stage.
D. By assessing the change using defined cost plus fee, not internal day rates or tendered schedules.
Q9: Early warning register timing
The first early warning register must be issued:
A. Within 24 hours of contract award.
B. Within one week of the starting date.
C. Within two weeks of the starting date.
D. When the contractor submits the first programme.
Q10: Fee percentage misunderstanding (NEC4)
A common misunderstanding when applying the fee under NEC4 is:
A. The fee is only applied to subcontracted work.
B. The fee is added to defined cost for CEs only.
C. The fee is applied to all defined cost, both for the main works and CEs.
D. The fee is included within the schedule of cost components rates.
Q11: Early warning register (NEC4)
How often must the early warning register be updated?
A. Regularly at early warning meetings.
B. Only when the contractor requests it.
C. Only at the start and end of the project.
D. Only when delay is forecast.
Q12: NEC instructions
A project manager’s instruction must:
A. Be verbal.
B. Be verbal first, written later.
C. Be in a form that can be read, copied and recorded.
D. Be issued only through the contractor’s email system.
Q13: Forecasting meetings (20.4)
Under options C, D, E, F the contractor must:
A. Provide an updated forecast of total defined cost at intervals stated in contract data.
B. Forecast only at completion.
C. Forecast only when the client requests it.
D. Not forecast anything unless a CE occurs.
Q14: Programme acceptance
The project manager must respond to the first programme:
A. Within 24 hours.
B. Within one week.
C. Within the period for reply stated in contract data.
D. Whenever convenient.
Q15: What if? Scenario (secondary options)
You are using option X12 (partnering). Which option cannot be used alongside it?
A. X3.
B. X16.
C. X20.
D. X18.
End of quiz!
Answers in the Classifieds section.
References: This quiz has been informed by a range of authoritative NEC sources, primarily from:
- NEC4 Engineering & Construction Contract (ECC), June 2017 + January 2019 Amendments + January 2023 Amendments.
- NEC4 ECC User Guide Volumes 1–4 (Official NEC Publications).
- NEC4 ECC Practice Notes (Official NEC).
- NEC4 Contract Data Format (Official NEC).
But also including; course notes from the NEC Project Manager Accreditation course, CICES technical publications and various NEC4 briefings by Dr Stuart Kings (NEC4 drafter and technical director at Sypro).