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PSC NEC3 Option C - Programme delay compensation event

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The situation is, Consultant issued a programme that the client accepted. A review period within the programme for the client to provide comments on the report was missed (the client took longer than what was shown on the programme).

The consultant is now saying they will not proceed without an instruction.

It this correct or should the consultant be raising the compensation event without an instruction

Does to client have to issue an instruction to say they missed a date in the programme (Clause 60.1(3) and/or Clause 60.1(5)).
asked Jun 26 in Compensation Events by SB_SA2005 (260 points)  

1 Answer

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I think this really depends on whether it was an obligation on the Employer to actually respond to this report or not. The fact that it is on the accepted programme is not really so relevant. If this was a requirement within the Scope to issue this report for acceptance and they have not responded then yes it would be a compensation event as this would be a hold point. If it was not an obligation, the it would be for the Consultant to proceed in accordance with the requirements of the Scope.

If they have missed an acceptance period stated within the Scope then the Consultant can notify this as a compensation event, and any cost incurred as a result of them not responding on time would be recoverable as part of that CE quote (along with any affect on Planned Completion).
answered Jun 26 by Glenn Hide Panel Member (87,260 points)  
Thanks for the response. The client agrees they missed a date and have agreed it is a compensation event.
The consultant is now saying they waiting for an instruction, does the client have is issue an Employers Instruction to the consultant?
If so is this an instruction to complete the original scope on a revised programme (still to be agreed)?
Thanks
Again it depends on what this is. If it is just lack of acceptance and the Consultant can not proceed unless it is accepted, then it is just a hold point awaiting acceptance. There is nothing to instruct here just awaiting the acceptance and teh time delay and resultant affect would be recoverable.

If the report requires an action or an instruction to do something different or a direction to go in, then yes it would require an instruction. The fact they agree it is a compensation event already is half the battle, so you would like to think they can also agree on the resultant action as to what happens next.

The action should be one of the following:
1. Consultant proceeds in line with the original Scope if there is no hold point and they have not been instructed to do anything else
2. This report is a hold point that requires acceptance, and in teh abscence of acceptance the Consultant stops associated work and any time delay will be recoverable until acceptance given. Once acceptance given they can proceed again without any other instruction being required.
3. this report requires an instruction as to what to do next, in which case the Consultant is on stop which again is a CE and WILL require an instruction as to what to do next.
Thanks very much.
So my recommendation to my client would be as follows.

The Employer was undertaking the review of the report and providing comments to the Consultant. The comments were required for the Consultant to complete the report and therefore the Employer has delayed the over completion date of the programme.
There is no change to the scope of works, only a delay to the programme, an instruction is therefore not required to be given by the Employer to the Consultant, but the Consultant is to raise a compensation event for the extension to the programme and associated cost impact