NEC ECC: Gateman not provided by Client - is this a compensation event?

NEC3 and NEC4 Contracts Compensation Events
1

On one of my current jobs, our client has not provided a gateman, yet the main gate must be locked at all times. This has resulted in one of our workers having to travel across site, taking approx 10 mins, to open the gate for visitors, deliveries etc. I have calculated over the duration of the project that we have spent 70 hrs ‘manning the gate’. I believe this should have been done by our client, so I’ve submitted a CE quotation with signed allocation sheets to the client QS, who has rejected the CE.

Under the NEC contract, am I right to argue this CE?

2

This really depends on specifically what your Works Information (or Scope under NEC4) states. If they have specifically stated this is something they would provide then yes this probably is a compensation event. If they did not specifically state or you assumed, then this would be much more subjective.

The way to flush this out would be to notify it is a compensation event explaining as convincingly the reasons why it is, and get their answer as to whether they agree or not. To put a quote in before you get an answer is wasting your time as if they say no they will not look at the money. I guess in this example you have their answer as they have said no.

That leaves you three options as I see it:

  1. notify an early warning to let them know the extent of the problem and how this could affect the works going forward, to see what they agree the action plan would be going forward to limit the impact.
  2. Notify again why you consider this is a compensation event giving them more evidence why you believe it is (if you cant give them different evidence they will only say “no” again)
  3. Take the matter to dispute - which would be initially to senior representatives under NEC4 and after that or for NEC3 it would be to take the matter to adjudication. Obviously you are only like to take it this far if is a big issue and large sum of money involved - that or you just want to prove a point of principle!
3

Many thanks for your great response Glenn. Looking back I should have raised an EWN to mitigate this although I did raise a Compensation Event Notification at the start of the job when the issue first arose.