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Forensic Claims Analysis

Compensation Events & NEC Option C

In the Open Standard
Stuart AtkinsonMember for 22 years 9 months
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I am currently having an ongoing discussion with my colleagues concerning the effective management of the programme within the NEC.

In brief my view is this-

An EW is raised.A EW meeting is arranged. From this meeting it can be ascertained by the client & contractor whether measures can be implemented to lessen or negate negative effects on the project.If it cannot be avoided (or has already past)any time implication should be presented on the programme showing any delay to completion. If the client agrees to the extension of time it will be then incorporated into the next programme update; and becomes the ’latest accepted programme’

Question - After demonstrating a potential delay by way of an ’early warning programme’ showing the client any effect on programme, would you leave this EW duration within the programme if the client did not accept the time element of the CE.


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5 replies

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  1. 0
    Neil Coker ·
    #1

    In my opinion, yes, as it

    In my opinion, yes, as it still constitues risk unless you are able to mitigate the exposure to the delay/time impact.

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  2. 0
    Mike Testro ·
    #2

    Hi Stuart The revised

    Hi Stuart

    The revised programme can still be approved with the Contractor responsible for the delays.

    Best regards

    Mike Testro

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  3. 0
    Gary Whitehead ·
    #3

    In my view, the programme

    In my view, the programme should always show the contractor's best estimate for an accurate schedule, and as such should include CEs.

    The only thing the client's acceptance has an effect over programme-wise is the contractual end date.

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  4. 0
    Damian Smith ·
    #4

    Yes I think you would do, the

    Yes I think you would do, the event has happened regardless of whether the PM has accepted it as a CE

    Potentially you'll have moved the planned completion date with the event, but not the Completion date.

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  5. 0
    Barry Fullarton ·
    #5

    Stuart, My stance would be to

    Stuart, My stance would be to simply follow the NEC .

     

    Here Clause 32.1 clearly identifies what needs to be shown in the Revised Program.

    specifically, any other Changes , my view that the intent of the NEC3 and it is planning requirements is to deliver to the Client an updated snap shot of the "status" of the project as of that agreed date. This it assist ALL parties to the contract and in the spirit of the Contract to assess EW in a Risk Reduction and manner of mitigation to see how best possible to meet the Contract Data Dates.

     

    This being said a CE event can occur with out an EW , Clauses 61.3 and 61.4 . A CE is an event that has occurred, one cant raise an EW for an Event that has occurred.

    An Early Warning by its own definition 16.1 is the notification by one party to the other as soon as they become aware of a matter which could . It would be used in the forward planning and value engineering that the potential exists for an event and the EW is the mechanism by which the parties work together to reduce or negate the event.

    Hence why I belive that all event should be captured on the revised Program

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