Can the dividing date be when an Early Warning was raised, when the contractor notifies a CE or when the PM acknowledges the event as a CE & requests a Quotation?
The ‘dividing date’ for Compensation Events is the date when the …‘Project Manager Instructed or Should have instructed the Contractor to submit quotations divides the work already done from the work not yet done’ (63.1) So, when the Project Manager instructs a quotation on X date it is that date you would assess your cost to date and forecast thereafter.
You would use an Early Warning to assess a Compensation Event quotation if the Project Manager found that the Contractor did not provide an Early Warning which an experienced Contractor could have given. (63.5) You would still assess your actual and forecast on the date which the quotation was requested however the assessment will be based on what could have been done if an Early Warning had been given.
1 Like
Please can you clarify which NEC contract you are referring to? NEC3 or NEC4 ECC?
The dividing date is a new term introduced within NEC4 contracts. Whilst it is not capitalised and therefore not a “defined term” in clause 11, it is described quite well within clause 63.1 as to what it is.
The dividing date is the switch point between using actual Defined Cost and forecast Defined Cost of a compensation event. It states that if the CE has arisen from a Project Manager instruction, the date of that instruction is the “dividing date” (i.e. the CE will only ever be assessed as a forecast as the Contractor should not have done any work prior to the instruction). For any other compensation events not arising form a PM instruction, it states the dividing date is the date of the notification from the Contractor that it is a compensation event.