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PMI needed if an NCE has been accepted?

0 votes
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If the Works information states a constraint that the Employer will provide something at a certain rate of supply (i.e per month or per week), however the Employer then subsequently fails to provide this at the rate stipulated in the Works Information, the Contractor then raises an NCE which is accepted.

Does the Project Manager need to then issue a PMI (and accompanying NCE) to change the Works Information and correct the rate of supply at which he is now to provide? or does the fact that the Contractor has raised an NCE essentially act as recognition that the Works information has been changed and so no PMI is then required?
asked Jun 5 in NEC3 Compensation Events by anonymous  
   

2 Answers

+1 vote
I actually see two issues here - one is dealing with the lack of supply to date, and the second is will this lack of supply continue in future? There is not an instruction needed for the lack of supply to date - as Jon has said that can be notified by Contractor that it is a CE under 60.1(5). Either Party can notify this as a compensation event.

The next issue will be if this is to continue. If the PM knows it will continue to be different to WI, they should give an instruction to state this change to Works Information which can then be assessed as a CE under 60.1(1). If however the supply will step back up to original stated quantities then there is no instruction needed and you only need to assess the actual lack of supply that has already happened.
answered Jun 6 by Glenn Hide (27,100 points)  
0 votes
The Contractor has raised an NCE, but the ECC does not explicitly state that the C - or PM for that matter - has to state under which CE heading it is notified.

If the CE is dealt with as being:
-  a change to the WI under clause 60.1 (1) then strictly speaking by the contract, the PM has to issue an NCE;
- the Employer not working with the conditions stated in the Works Information, then it would be a CE under 60.1 (5) and the PM woulds not need to issue an NCE under 61.1, but respond in accordance with 61.4.
answered Jun 5 by Jon Broome (18,240 points)