NEC - Compensation Events

Cl: 32.1 of the ECC states that:

The Contractor shows on each revised programme
· The effects of implemented compensation events and of notified early warning matters,

Further Cl: 65.1 then states:

The Project Manager implements each compensation event by notifying the Contractor of the quotation which he has accepted or of his own assessment. He implements the compensation event when he accepts a quotation or completes his own assessment or when the compensation event occurs, whichever is latest.


From these statements it is my interpretation that the revised programme should not include those activities (and any change to the Completion Date) that are associated with the CE until the quotation has been accepted (i.e. Implemented).

While the contract clearly lays down a time table for preparation, assessment of Compensation events, experience has shown that this can be onerous and that the reality is that it can take much longer for the implementation (Cl65.1) to be reached.

As a result the situation may arise where by the revised programme continues to be submitted reflecting the original planned intent and not the plan incorporating the changes as a result of the CE. Again it is my interpretation that this is the correct approach in line with the contract mechanisms. However this in practice potentially leads to a programme that is of reduced value as a proactive tool for managing the works (as it does not reflect reality).

Discussion would be welcomed as to other peoples interpretation (and practical experience)or whether people believe the wording elsewhere imposes (or at least implies) a requirement to show the CE activities even if they are unagreed.