Compensation Events

Hi. On our NEC4 Option A contract, throughout the project, various drawings have been issued to us late by the client which has caused delay. These revised drawings have usually but not always changed the scope of the works. In a few cases we neglected to notify a CE for the fact that the information was outstanding and the 8 week time bar has lapsed. Our question is whether a separate CE notice was necessary for the fact that the information was late given that the client issued a CE notice when the revised drawings were eventually issued. I.e. can we claim the cost of delay caused by the late info in our quote for the CE which was issued with the revised info?

Hi and welcome to the community

Its not clear to me from your question whether the revised drawings are changes in Scope ie the drawings contain changes, or if they are drawings proving new information that is necessary to Provide the Works. In either case the issue of the drawings is a compensation
event because it is a change in Scope (assuming the change is not due to the bullet point exceptions in clause 60.1(1).

Since you refer to the information being late it suggests that it was missing information (new information rather than a revision to existing information). If that is the case the Project Manager may take the position that you should have notified an early warning that would have allowed him/her to take actions to negate the delay and the compensation event should be assessed on that basis.

In summary, if the drawings were a change then the assessment should consider any delay based on when they were issued and the change itself. If the drawings were additional information that you were previously aware would be issued at some stage you may be challenged that you should have raised an early warning that late issue would cause delay.