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Project Managers Assessment

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Just wanted to douuble check this with you. If no programme was issued with a CE and no delay to porgramme was indicated is it acceptable to state N/A to delay to Completion Date?
asked Aug 29, 2014 in Compensation Events by Barry Trebes Panel Member (27,800 points)  
Regardless of anything the Contractor has done not done or indicated the Project Manager must make his own assessment and state his reasons why he is makingn his own assessment. If the Contractor has not indicated any programme impact then simply putting Not Applicable - is not adequate. You need to image standing in front of an Adjudicator justifying your assessment - what information did you use - latest accepted programme, site diaries, etc who did you consult with planner/supervisor - in short you need to justify your assessment of the programme.

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Best answer
Barry - as with any compensation event the Project Manager has to make their own assessment if they feel the Contractor has not assessed the event correctly. They would be very quick to point out if they have over assessed and look to assess it themselves. If the Contractor has obviously under assessed then the Project Manager should be making their own assessment and increasing the value under their own assessment (some might say at this point "watch out for those flying pigs"!). The biggest chance of under assessment is quite likely to be where the Contractor has not assessed the time implications accordingly.

If a Contractor has not assessed time and it is not obvious to the PM that it has included a time delay to planned Completion then I would say it is reasonable to assume there is no change to Completion Date for this event. If however the Project Manager thinks that there was a delay to planned Completion and that the contractor has not assessed it he would be wrong to just write N/A.

The main burden of proof therefore has to come from the Contractor in the first place, to assess the full impact of the compensation event including time and claim for it within that compensation event. There is no other mechanism to move Completion Date at a later stage.
answered Sep 1, 2014 by Glenn Hide Panel Member (84,800 points)  
selected Mar 1, 2018 by Glenn Hide
+1 vote
If the Project Manager does not think there has been a delay to the Completion Date he may simply accept the quotation as per clause 62.3 and it becomes implemented as per clause 65.2. However, if the Project Manager believes that there was a delay he should not blindly assess the compensation event as having no effect on the Completion Date just because the Contractor did not include a programme showing alterations to the Accepted Programme. This is despite clause 62.2 placing a duty on the Contractor to submit details of his assessment with a quotation including alterations to the Accepted Programme if the programme for remaining work is altered by the compensation event. Clause 64.1 provides for four circumstances in which the Project Manager assesses a compensation event and the second bullet point that the Contractor has not assessed the compensation event correctly in accordance with the contract may be applicable in this case. Then as per clause 64.2 if no programme was issued with the compensation event then the Project Manager assesses a compensation event using his own assessment of the programme for the remaining work according to the second bullet point of that clause. The Project Manager then needs to notify the Contractor of his assessment giving details of his assessment (clause 64.3) so just stating not applicable to a delay to the Completion Date may very well be insufficient.

The fact that the Contractor did not submit a programme is persuasive evidence that there may well have been no delay to the Completion Date and it is not up to the Project Manager to make the case for the Contractor.  However, the Project Manager should still be alert to any other contemporary evidence that was a delay to the Completion Date to review this matter fully. It is open to the Project Manager to invite the Contractor to submit an alternative quotation in accordance with clause 62.1.
answered Sep 1, 2014 by Ewen Maclean 1 (290 points)