NEC4 Core Clause 7 – Title.

Purpose

NEC4 Core Clause 7 – Title, deals with who owns the materials, Plant, and Equipment used on the project at various stages.
In simple terms, it determines when ownership (title) passes from the Contractor to the Client (Employer).

This is important because ownership affects:

• Risk of loss or damage
• Security of payment
• Who can use or remove materials/equipment
• Insurance responsibilities

Main Principles under NEC4 Clause 70 (Title)

Although the exact clause number can vary slightly between NEC editions, the general rules are as follows:

1. Ownership of materials passes to the Client (Employer) when they are:
   • Brought onto the Site, or
   • Paid for by the Client (even if not yet delivered to Site).

➤ This means if the Employer has paid for something (e.g., prefabricated components stored off-site), they legally own it, even before it’s installed.

2. Contractor’s Plant and Equipment (e.g., cranes, tools, formwork):
   • Remains owned by the Contractor.
   • The Client never acquires title to these items, even if they’re on Site, because they are part of the Contractor’s means of carrying out the work.

3. Temporary Works or Materials Not Yet Paid For
   • If materials are brought to Site but not yet paid for, they usually remain the Contractor’s property until payment.
   • The Contractor therefore bears the risk of loss or damage until title passes.

4. Materials Off-Site
   • If materials are off-site but paid for, ownership can still transfer to the Employer if allowed by the Contract Data and suitable evidence, like invoices or proof of storage, is provided.

Why NEC4 Core Clause 7 – Title, Matters for QS’s

• It affects valuation and payment certification – you can only certify payment for materials that the Employer will legally own.
• It’s key for insurance cover – whoever owns it usually needs to insure it.
• It can prevent disputes about who bears the loss if materials are damaged or stolen.

Example Scenario

Let’s run through an example scenario on NEC4 Core Clause 7 – Title. A Contractor brings £100,000 worth of bricks to site and consequently submit an interim application for payment. Once the Project Manager certifies payment for those bricks, title passes to the Employer — even though the bricks haven’t been built into the wall yet. If those bricks are stolen the next day, the risk might still rest with the Contractor (depending on Clause 8 – Risks and Insurance), but ownership rests with the Employer.

So: ownership ≠ risk, but they are related and must be understood together.