NEC 4 ECS Option A - CE Quotation as a CE Notification

NEC3 and NEC4 Contracts Compensation Events
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Hi All,

We are a Contractor administering the above contract and have received our first CE quotations from our Subcontractor. There have been no prior CE notifications, or for that matter, any Early Warnings. The Quotations are clearly headed as such and in no way allude to them also being a notifications.

I am therefore trying to workout the following:

  1. Can quotations also be a notifications?

  2. Am to assess them as notifications or quotations?

  3. What timescales apply to my assessment.

Hopefully that is clear,

Thanks is advance

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  1. No, but under ECSC when the Subbie notifies the CE they are also supposed to provide quotation. ECSC doesn’t have the ‘separate communication’ requirements that exist in the full contract, so there is nothing procedurally wrong with notifying it and quoting it in the same communication. As such, this could just be a case of a sentence and / or a clause reference being missed out.
  2. Technically neither. If they have not notified the CE there isn’t one. But see 1.
  3. Again…

I’ll also point out that EW is not a pre-cursor to a CE. If the CE exists, it exists.

Most likely your SC has just not understood the process. Suggest you give Early Warning, have a Risk Reduction Meeting, and talk it all through. You can then agree what to do about it; but if it is just a missing clause reference I’d personally be fairly forgiving, and choose the easy path.

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Hi Andy,

Many Thanks for the reply,

I was referring to Engineering and Construction Subcontract rather than the Short Contract.

Thanks

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I’ve seen ECSC and absorbed ECSS - sorry!

That does change the answer. They should have notified separately and then been instructed to provide the quotation. As such there is nothing for you to assess and therefore no timescale - you can’t have a quotation that is also a notification in the full contracts.

I’m not sure it changes the principle of the answer, though. Our supplier clearly doesn’t understand. Its probably in your interests to help them get to a place where they do understand.

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Thanks Andy appreciate the quick response!