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Advice on how to tackle a compensation event for current & future contracts

0 votes
Needing a little advice with a compensation event I'm currently dealing with, if anyone can assist. Ongoing roads design related option B contract. After a few weeks on site (several locations) contractor moved to a new street location (one week ahead of their programme) with the Roadworks Register Notices not allowing access until the date specified on their programme (this was inserted into our Specification). Informed contractor access was not permitted at this location at this time & moved them to where outstanding work was still to be complete. Contractor claimed that work was stopped and claiming compensation due to clause 33.1 allowing access to each part of the site. With a contractor ignoring the New Roads and Streetwork Act and being non-compliant I'm unsure how to highlight this without going to arbitration.

asked Jan 16, 2017 in NEC3 Compensation Events by Mko  

2 Answers

+1 vote
Under clause 61.4, one of your responses as a PM (which I assume you are) is to that the compensation arose due to the Contractor's fault in which case the Prices and Completion Date are not changed. It sounds as if this would fit the circumstances.
answered Jan 16, 2017 by Jon Broome (25,800 points)  
I would say Clause 33.1 is also relevant - "Access and use is allowed on or before the later of its access date and the date for access shown on the Accepted Programme".  So the Contractor cannot claim access on a date earlier than that shown on the current Accepted Programme.
+1 vote
To be really pedantic you cant claim a compensation event under clause 33.1. The Contractor can only notify a compensation event if they can find a reason within clause 60.1 as to why it is a compensation event - for which this would not be one.
answered Jan 16, 2017 by Glenn Hide (33,750 points)