Managing & assessing NEC compensation events

OVERVIEW
Introduction
• Background and principles
• What is a compensation event
• What other contractual entitlements apply?
• Common law claims

The compensation events
• The core clauses
• The main options
• The secondary options
• Additional compensation events
• Omissions from the list

Notification of compensation events
• Contractual requirements and limitations
• Notifications: by the project manager; by the contractor, effect of failure to notify or reply
• Conditions precedent
• Deemed acceptance and project manager failure

Quotations for compensation events
• Status of quotations, if instructed; if not instructed
• Procedure and timetable; instructions for alternative quotations; contractor’s alternatives
• Revised quotations
• Project manager’s assumptions
• Extending time for quotations
• Cost of preparing quotations
• Deemed acceptance and project manager failure

Assessment of compensation events
• Cost of work; use of schedule of cost components; use of shorter schedule of cost components; use of bills of quantities; the contractor’s fee
• Cost of subcontracted work
• Reduction in prices
• Differences between main options
• Time; delay to completion; content of and reference to the accepted programme; time and risk allowances
• Failure to give early warning
• Assessing the effects of ambiguities or inconsistencies
• Project manager’s assessments

Implementation of compensation events
• Procedure and timing
• Effect of implementation

Practical examples & problems
• This course includes practical examples of the management and assessment of compensation events and discussion on problems frequently encountered in notices, quotations and assessments