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Are the additional risks stated in Contract Data Pt 1 compensation events if they occur

+1 vote
In the CD Pt1 where the employer identifies "........matters will be included in the Risk Register", if those risks occur would they be a compensation event or are they risks that should be considered by the Contractor when building up his Option A fixed price?
asked Sep 30, 2014 in NEC3 and NEC4 Contracts by Nigel Lowe   2
Can you confirm whether the additional entry in the CDP1 for "Additional Employer's risks" has also been completed"

1 Answer

+1 vote
Best answer
There is an important difference between the Risk Register and Contractual Risks. The Risk Register (cl. 11.214 and cl. 16) is a means of managing anticipated problems to the operational aspects of the project, it is not a means of assigning liability for them. The contractual risk are the exact opposite. Risks added in to the risk register in CDP1 are inserted under teh following entry "the following matters will be included in the Risk Register..." These entries in the CDP1 per se are unlikely to result in CEs.

In the CDP1 flip on a couple of pages and you will find "These are the additional Employer's risks". These entries align with the last bullet of clause 80.1. Any entries here will be treated as CEs if they occur.
answered Sep 30, 2014 by Rob Horne Panel Member (20,080 points)  
edited Oct 9, 2014 by Chris Corr
Agree with Rob's comments - the Risk Register entries in CD pt1 and 2 only identifies issues for the Parties to MANAGE - IT DOES NOT ALLOCATE RISK - only compensation events and entries in the Additional Employer's risks do that. The Risk Register does cause a lot of confusion as many people believe that it does allocates risk between the Parties when it does not.