Under an NEC3 Option C contract, the client is not assessing agreed compensation events and current works information (i.e. CEs that both parties are aware of but no quotation value has been agreed) within the programme. The compensation events and the current works information impact the completion date, what action should the Contractor take?
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The first thing to do is make sure you are operating the contract as stated i.e. giving notifications of compensation events within the 8 week timescales if it applies (which it won’t always e.g. for changes to the Works Information) and if instructed, submitting quotations within the 3 weeks time scale.
Then (whilst being mindful of the workload on you it will create) :
- notify compensation events under clause 61.3 which the Project Manager (not client !) should have notified to you;
- notify under clause 61.4 the Project Manager of CE notifications that they have not responded to. Regardless of whether they respond or not within the further 2 weeks allowed, then be prepared to proceed to assessing the CEs by providing quotations within 3 weeks.
- notify under clause 62.6 the PM of quotations which they have not responded to. If they still do not respond within a further two weeks, they are treated as being accepted.
However, this is a very contractual route to proceed down - and there is nothing wrong with that - but it might cause aggravation between you and the Employer / PM. It may be better early on to notify an early warning and call a Risk Reduction meeting to address the causes of why one or both parties are not managing the contract as stated and hence won’t be gaining the benefits !