NEC 4 ECC Option C - RISKS

NEC3 and NEC4 Contracts Compensation Events
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Pre-construction phase. There have been some Contractor’s and Client’s Risks that have ocurred. What is the contract mechanism to transfer the budget/money from the Contractor’s / Clients’ Risk pot? Is it through a Compensation Event mechanism process?

Some of the Risks were not identified/not allowed in the original Contractor / Risk pot.

I assume the Compensation Event mechanism process could be applied for the Client’s risks that have ocurred but what about the Contractor’s?

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Welcome

I have assumed you are under a contract with X22 and are in the Stage 1 phase prior to notice to proceed to Stage 2.

I would suggest that the easiest way to record the changes is by a Deed of Variation to capture the agreement between the Parties (clause 12.3) of the new Budget and new Prices for Stage 2. This could also capture any change in Scope and trigger notice to proceed to Stage 2.

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