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NEC ECC: What clause in the Option A can be used in an Early Warning

0 votes
My client has asked me to put an awarded project on hold until the project I am busy with now is completed, due to both projects needing the same temporary skid which they have only one of.
The new start date will be early next year, and I need to put in an Early Warning to advise of price escalation/price increases.

Please advise what clause in the NEC 3 I could use?
Thank you
asked Oct 22, 2018 in Main options by MelissaKopman (120 points)  

2 Answers

0 votes
Assuming you're using the NEC3 Engineering and Construction Contract, the Project Manager should first issue you an instruction to stop or not to start work under clause 33.1. This instruction would then be a compensation event under clause 60.1(4) for which you are entitled to cost and time. Problem you have is that this becomes a reason to terminate under clause 91.6. There isn't really any point in giving an early warning notification under clause 16.1 as the event has already happened.

I would suggest that you discuss with the Employer using a Contract Amendment to formally amend the dates in your contract, and to change the Prices to reflect the increased costs you will incur due to the delayed start.
answered Oct 22, 2018 by Neil Earnshaw Panel Member (30,260 points)  
0 votes
I think in this instance although it is an event that WILL happen I would notify an early warning so you can highlight the issue and discuss in a meeting what they want to do about it.

Alternatively you could notify a compensation event, and get them to agree assumptions under 61.6 that you should base the price upon - which if then there are price increases for something specific the difference could be assessed. The alternative is that you price now any price increase risk and if implemented this would then be your risk.
answered Oct 22, 2018 by Glenn Hide Panel Member (84,440 points)