Under the NEC Supply Contract, clause 61.4 states the requirement of the Supply Manager to respond to a notified CE within 1 week or at a later time agreed with the Supplier.
My understanding is that to impose a time bar thus resulting in the NCE being deemed accepted, the Supplier has to notify the Supply Manager of his/her failing of not responding to the NCE. It is not a requirement under the Supply Contract as it only states ‘may notify’, but it is only after this notification that if no response is provided for a further 2 weeks, the NCE can been deemed an accepted CE and a quotation provided accordingly.
However reviewing the NEC Supply Chain flow chart for compensation events, it shows that if the Supplier does not notify the Supply Manager then clause 60.1 (6) becomes applicable. However my understanding is that the Supplier would be required to raise and submit a CE referencing clause 60.1 (6) when stating the Supply Manager has not responded in the time period within the Supply Contract and the whole process of reviewing and responding to CE’s starts again - is this correct? Even so, what of the original event? Does it mean that as clause 60.1(6) has now been applied that the original event is deemed accepted?
My confusion is, yes, clause 60.1(6) can be applied and that the Supply Manager had not replied in the time period stated however the flow chart then follows through to clause 61.4 and surely this particular clause (60.1(6)) is one of the more difficult ones to dispute because the only real option to reject this NCE would be if the Supply Manager felt the event has no effect upon Defined Cost or Completion Date no?
Furthermore, if the Supply Manager has not responded within the 1 week allowed but instead responded 3 weeks later. Can the Supplier raise a further NCE referring to clause 60.1(6) despite a response now having been provided? (I guess they can but what is the impact of this - the NCE accepted as it was late but if the original NCE was rejected then is it now deemed accepted and a quotation received and must be assessed by the Supply Manager?)