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NEC ECC: Representation of compensation event on a programme

0 votes
A Contractor submitted a 1st Clause 32 programme with a number of implemented/non implemented CEs.
Each of the CEs are shown as a number of activities, linked within/out with the CE WBS. This makes it extremely  difficult to carry out any kind of TIA.
Can I request for the Contractor for a revised programme that shows 1 CE as 1 activity?
Thanks for your assistance.
asked Jan 23 in Compensation Events by Prefole (180 points)  

1 Answer

+1 vote
It is fine and correct for their "clause 32" revised programme to show the cumulative effect. However, their individual CE quotations should be including a programme to demonstrate the specific effects of that event so that it can be considered/assessed accordingly.

Let's say in the period we have had CE01, CE02 and CE03. Cumulatively they have (say) a three week delay. CE01 should have its own quote issued with its own programme to show say a one week delay to planned Completion. There should then be a separate programme with CE02 quotation to show the extra over effects CE02 will have on the programme that already has CE01 in it (say a further week). Finally a quote and programme should then show the effects CE03 has had over and above that of CE01 and CE02(which is say one more week). Each programme issued with the quotation is NOT a programme issued for acceptance - it is issued to help the quotation by understood and agreed.

This also means that the accepted programme that in this case will show planned Completion moving by three weeks due to the affects of the CE's can be accepted before the CE's are agreed without compromising liability. In this case "planned Completion" will have moved three weeks beyond "Completion Date" (assuming they were the same date before), and then Completion Date can then move as and when the individual CE's are agreed and implemented.

At the end of the day the Contractor should be looking to be prove to you the effects of compensation events. If you don't understand when they are just shown altogether you are unlikely to agree so they should do anything in their control to present these in a way that you do understand and are more likely to agree.
answered Jan 24 by Glenn Hide (68,950 points)  
Thanks Glenn for your reply.

What I would like the contractor to produce is:
-    A Clause 32 programme that shows 1 activity per CE. If, as an example, 3 CES have arisen since last submission, they will be shown by 3 activities only, CE01 to CE03, each linked to the appropriate unique predecessor and unique successor to demonstrate impact on PCD
- And for each of the CE, an individual clause 62 (?) programme that shows additional details with possible multiple activities with appropriate predecessor(s) and successor(s) to demonstrate impact on PCD.
Is this a reasonable request?

Also, the latest clause 32 programme is showing  a  number of new CEs each with their WBS in which a number of activities.
Is this acceptable/correct that, as an example, some activities of CE01 have links with activities of CE02?
I don't think you can or should limit it to one activity on the programme per CE - as there may be several activities and not necessarily consecutively that could affect the programme that all amount to CE01. For example, delayed access might mean applying for a new closure, and the activities themselves now being pushed out into winter working so will take a bit longer than the original duration's, You can't really show that as one bar without it being a (meaningless) summary bar.

Each individual programme that goes with the individual quote should show the effect of that CE. So say CE01 shows a delay of one week, the CE02 programme would show the extra over effects that CE has over and above that of CE01, and finally the  CE03 programme that goes with the quotation will show the extra over effects that it will have over and above that of CE01 and CE02.  

The clause 32 programme should show the cumulative effects of all progress, new activities, change in logic as well as the effect of compensation events upon planned Completion. The assessment and implementation of each CE will decide if Completion Date should move at all.

I would encourage the addition of a CE reference either in the activity description itself or in the WBS so everyone can see what is being said. Accepting a programme does not accept liability - the CE process will decide if it is agreed that it is a compensation event, and then what the value of it will be.