Tag: Compensation Events

Does NEC3 have too much process and procedure ?

TAGS: Accepted Programme, Compensation Events, Early Warnings, NEC, NEC3, NEC4

NEC contains a lot of processes from early warning through programme updates to compensation events. In this video, the panel discusses whether these process add unnecessary cost and bog a project down in unnecessary administration?

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Part 9 : Stimulus to Good project Management

TAGS: Accepted Programme, Compensation Events, Early Warnings, NEC, NEC3, Payment, Project Management

This video gives an overview of the Stimulus to Good Management objective and why it matters.

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Part 15 : Compensation events

TAGS: Compensation Events, NEC, NEC3, Project Management

This video gives a quick overview of compensation event definitions, process and timescales.

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Part 16 : Review of Stimulus to Good Project

TAGS: Accepted Programme, Compensation Events, Early Warnings, NEC, NEC3, Project Management

This video briefly reviews how the NEC aims to stimulate good project management

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Managing Compensation events properly!

TAGS: Compensation Events, NEC, NEC3, NEC4, Risk Management

In this video, Jon explains how to assess compensation events quickly, amicably and accurately with less ‘hassle’. Wouldn’t that be good ?

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NEC: Is the programme submitted with a CE a revised programme under 32.2?

TAGS: Accepted Programme, Compensation Events, NEC, NEC3, NEC4

NEC requires that any compensation event (CE) that has an effect on programme should include the alterations to the Accepted Programme with the quotation for it (clause 62.2). Does that mean a new programme has to be submitted for every compensation event and, if it does, then it becomes the new Accepted Programme ?

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Compensation Events tie together all contractual consequences

TAGS: Accepted Programme, Compensation Events, NEC, NEC3, NEC4

The theory behind compensation events in the NEC is to take an event and deal with all of its consequences and how all parties have dealt with it in one go. Does that produce a better result or just a more complicated process? Is it really any different to other contacts in practice ? Ian, Ewen, Rob and Jon discuss.

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Which of compensation events are most common?

TAGS: Compensation Events, NEC, NEC3, NEC4

The compensation event mechanism is intended to be a sole remedy under the contract. So the list of nineteen core compensation events should be all encompassing. Despite that breadth are there trends for which ones are most common ? And are there particular events which rarely seemed to be claimed properly ?

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How do the time bars in clause 61.3 operate?

TAGS: Administration, Compensation Events, NEC, NEC3, NEC4

Clause 61.3 provides that, for certain compensation events, if the Contractor does not notify them within 8 weeks of becoming aware of them, it will lose the right to a change in the total of the Prices and the contractual Completion Date. That doesn’t sound very much like mutual trust and co-operation, does it ? Is it appropriate to have time bars in this contract and do they work ?

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What happens when the Project Manager doesn't reply properly?

TAGS: Administration, Compensation Events, NEC, NEC3, NEC4

There are a number of stages that a compensation event needs to pass through before it becomes contractually implemented. Is it possible for the Project Manager to de-rail the process by refusing to engage in it? If there is a lack of engagement what happens ideally and practically ? Jon, Ewen, Rob and Ian discuss.

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Does clause 63.1 apply to assessing time as well as money?

TAGS: Accepted Programme, Compensation Events, NEC, NEC3, NEC4

Clause 63.1 provides a dividing line between using the cost incurred and using a forecast of cost plus risk for future operations. Given that the compensation event process deals with all aspects of an event in one go does the dividing line established in 63.1 apply equally to delay caused by the event or is there some other mechanism that has to be used? If the latter, does that threaten the all-encompassing approach of compensation events?

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Do the 63.7 assumptions work in practice?

TAGS: Compensation Events, NEC, NEC3, NEC4

Clause 63.7 allows the Project Manager to give some working assumptions to the Contractor where there is not enough detail available for a proper quotation for a compensation event. Are assumptions often given and if they are, do they help the Contractor or just cover the Project Manager ?

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