NEC3 ECS - CE Assessments

NEC3 and NEC4 Contracts Compensation Events
1

Hi,

We have appointed a Subcontractor under an NEC3 ECS Option A. The SC last accepted programme dates back to April 2023. A couple of Cl32 programmes have been submitted since this date but have been rejected in accordance with the contract. The SC has submitted a number of CEQ’s, the majority of which include a time element (prelims). Whilst for some they have a genuine entitlement to movement to the Subcontract Completion Date, some they do not. No Cl62.2 programmes have been submitted to support the CEQ’s.

We, as the Contractor do have an Accepted Programme in place with our client. This has never been shared with the SC.

My question is two fold.

  1. Cl 64.2 states we are to assess the programme for remaining work and use this to assess the CE. But which programme is used? The last rejected Cl32? The last accepted out of date Cl31? Our programme? No programme at all?

  2. Do we share the assessment of the programme with the SC or is simply assessing the CE and providing narrative/commentary of the assessment sufficient? For example, narrative would state something like “no impact on critical path therefore no movement to Completion Date and no entitlement to prelims cost.”

Regards.

2
  1. you should do exactly what you expect the subcontractor to have done. Take the subcontractor’s accepted programme, update it to the date of the compensation event and impact it with the compensation event to see the effects of the compensation event.

2 I would suggest that you should provide it.

3

  1. By not keeping the CL32 up to date you are heading for a long series of disputes.
    You are obliged to follow Cl63 in assessing the CE.
    Cl 64 tells you that you need to forecast the effect of the CE on the remaining work if the Contractor hasn’t submitted at cl62 programme with his quotation.
    You should start with the CL31 and update it for each period, using factual progress data. Once complete up to the period before the event occured, you can then accurately forecast the effect of the CE on the remaining work.

  2. You have to do the assessment in accordance with Cl63, therefore you must provide as much detail as you would expect from the Contractor.