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NEC ECS: Contractor delay in assessing Compensation Events
NEC 3 Option B:
During the course of a 12 month contract the Subcontractor has issued a substantial amount of Compensation Events many of which are due to the lack access to areas provided by the Contractor,
The Subcontactor is now 7 months into the contract and none of the Compensation Events have been fully agreed.
The Contractors Senior QS ( carries out part assessments on each of the CE when the AFP is due ) and states he still requires further information,
To note the Contractor QS has a tendency to go on annual leave once his "interim" assessment is made even though the Subcontractor continually provides further information (ie. annual leave from 07.12.08 - 07.01.19 and now 01.02.19 - 14.02.19) this in turn is having a profound effect on the Subcontractors cashflow on the project.
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Few points of note:
- as a Subcontractor you submit your quotation as full as possible so they are not able to just respond with the fact they need more information. If they do, then they need to make it clear exactly what they need and you should provide that so at least this will only ever be one iteration. If you believe you have given them everything then tell them that and it will force them to make their own assessment.
- If a Contractor has not responded to the quotation within the time allowed (four weeks) then you can notify them (in writing) of that fact, and after a further three weeks of silence it would be deemed accepted.
- the Contractor has to respond within the timescales. Whoever is named as the Contractor should be responding to quotes and if someone is going on holiday there should be delegated powers given to someone to keep the process(es) moving.
Both Parties need to talk to each other and get to a position of agreement so you both know your respective liabilities. Ignoring getting compensation events to become implemented is very short sighted and does neither Party any favours.
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