How long has a contractor got to notify the Project Manager of a compensation event?

How long has a contractor got to notify the Project Manager of a compensation event?

within eight weeks
For all others, the Contractor notifies the Project Manager of the compensation event, which notice must be issued within eight weeks of the Contractor becoming aware of the event (clause 61.3). For compensation events that should be notified by the Project Manager, the 8-week time bar does not apply.

Can a compensation event be notified without an early warning?

The early warning clause is explicit that an early warning does not have to be notified if the matter has already been notified as a compensation event. The other key link between early warning and compensation events is the clear commercial incentive for the contractor to give the early warning.

What is a compensation event under NEC3?

Compensation events are events which are usually not the fault of the contractor and change the cost of the work, or the time needed to complete it. As a result, the prices, key dates or the completion date may be reassessed, and in many cases the contractor will be entitled to more time or money.

What is an NEC activity schedule?

An activity schedule is a list of activities prepared by the Contractor which he expects to carry out in Providing the Works. When it has been priced by the Contractor, the total of the lump sum Prices is compared to the final Price for Work Done to Date in order to ascertain the Contractor’s share.

Can a compensation event be notified after completion?

NEC requires notification of any matter which increases the total of the prices, delays completion, delays the meeting of a key date, or impairs the performance of the works. Notification of Compensation Events is covered under Clause 61.

What is the period for reply NEC3?

Communications must be sent to the correct address to be valid. The period of reply: certain clauses have their own timing requirements (the 8-week period for compensation events being a clear example).

What is the difference between early warning and compensation event?

The difference One distinction between an early warning and a compensation event is that typically the early warning process deals with events that have not yet happened but have a strong possibility of occurring, whereas the compensation event process is usually for events that have already occurred.

What are early warnings for NEC?

The early warning process is a risk management tool that requires the project manager and contractor to give an early warning of risk by notifying the other party before it materialises. Some professionals describe it as ‘the jewel in the NEC crown’ (Gerard, 2005).

How long does the contractor have to submit a quotation for a compensation event?

three weeks
The contractor then has up to three weeks to provide quotation, and the project manager a further two weeks to respond. When agreement has been reached, any changes to the contract are implemented.

When can a contractor submit a revised activity schedule?

A Contractor can propose a change to the activity schedule if it no longer reflects how they plan to do the works. This revised activity schedule needs to be accepted by the Project Manager before it becomes the new one.

Is a contract compensation event the same as a relief event?

Compensation Events differ from Relief Events in once crucial respect, which drives all other differences between the two regimes: Compensation Events are (at least as between the Authority and the Contractor) within the Authority’s control and risk.

Is a compensation event an instruction?

Only an instruction of the Project Manager changing the Works Information is listed as a compensation event. As unfair as it may seem, if a contractor has complied with the Supervisor’s instruction, the Project Manager may validly refuse to pay the contractor for that work.

When can a Contractor submit a revised activity schedule?

Is an email an acceptable form of communication NEC3?

The form the notice can take: the NEC3 requires notices to be in a form that can be “read, copied and recorded”. This means notices will need to be “in writing”, which could include electronic communications including email and web-based collaboration tools.

Can a supervisor attend an early warning meeting?

The Project Manager instructs the Contractor to attend a first early warning meeting within two weeks of the starting date. stated in the Contract Data until Completion of the whole of the works. The Project Manager or the Contractor may instruct other people to attend an early warning meeting if the other agrees.

Who notifies an early warning matter?

Clause 16.1 also emphasises that: ‘The Contractor may give an early warning by notifying the Project Manager of any other matter which could increase his total cost… Early warning of a matter for which a compensation event has previously been notified is not required’.

Can a compensation event be notified after the defects date?

The Project Manager or the Contractor may not issue notice of a compensation event after the Defects Certificate has been issued.