NEC3 - Opt A Contract - Late Impact Programme

NEC3 and NEC4 Contracts Compensation Events
#1

Hi Everyone, what would you consider on the below mentioned situation?

  1. The Contractor has delayed to approve some design
  2. The Subcontractor sends an EWN for this and explains the late approval delays their installation and key dates etc.
  3. The Subcontractor issues an NCE and mention the time impact (but doesnt send the impact programme itself)
  4. The Contractor doesnt reply the NCE for months
  5. The Contractor says it is too late to send an impact impact programme.
#2

I presume that the CE was notified in a timely manner (re: clause 61.3) and that the Contractor has accepted your NCE.

Any quotation assessment considers the effect of the compensation event on Defined Cost and any impact upon time which is due to the compensation event. Defined Cost is (technically) split between actual and forecast using the ‘dividing date’, with an assessment of time made using the Accepted Programme current at the time the CE occurred, as the starting point.

The NEC Practice Note ‘Assessing delays due to compensation events’ gives useful guidance on an assessment process and although it is written for NEC4, the principles apply to NEC3 as well.

The fact that the CE occurred some time ago does not change the assessment procedure including the associated assessment of ‘time’.

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