NEC3 ECC Option C: Disruption/Access Issues but still finishing prior to the Contract Completion Date

NEC3 and NEC4 Contracts Compensation Events
1

Hi,

We are in a situation with the Employer where we have had multiple disruptions throughout the programme which is at the Employer’s Risk (CE’s notified and accepted), however the Employer has said that should we still finish within the Contract Completion date, that these CE’s will be nil value.

I disagree with this sentiment as I believe that should we have never had the disruption we would have finished earlier and realised cost savings on the project, which should be protected from an Employers Risk that has occurred.

Am I right in what I am saying above?

Kind Regards,
CM

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In principle, yes you are. You are entitled to have the compensation events assessed for their effect on Defined Cost + Fee and planned Completion, in simple put you back to the position you would have been in had the compensation event(s) not occurred. It is the Project Manager who administers the CE process not the Employer and the PM is required to do so impartially and in accordance with the contract.

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