NEC4 ECC Option C: Is EW the only gateway to CEs?

NEC3 and NEC4 Contracts Compensation Events
1

NEC4 ECC Option C (unamended)
Party: Contractor

Scenario:

  1. The PM holds the view that EW is the only gateway for CEs.
  2. The Contractor was required by the PM to submit EW Notice for CE as opposed to a CE Notice per 61.3, intended by the contract.
  3. All CE discussions were had in the EW Meeting
    a. The Contractor is required to submit a quote along with the EW Notice.
    b. Events were discussed in that meeting to agree whether it should be “flipped over to a CE”.
    c. The PM approves the quote when he/she is satisfied.
    d. All these data and information are managed in the EW Register and has a column titled “Date approved” for quote pricing.

Query:

  1. When CEs are flipped over per 3.a above, does that qualify as PM’s acceptance of a CE?
  2. Do populated fields under “Date approved” qualify as the PM’s notification of quote acceptance for the respective CEs?
  3. In summary, does recording of decisions in a register necessarily comply with Cl 13 Communication and specifically with 13.7 for separate communications?
  4. Are these “CEs” contractual CEs, taking into consideration that Cl 16 hasn’t been adhered to strictly?
2

Marcel, since the contract is agreed in its unamended form as you say, both Parties should adhere to the relevant clauses for early warnings, CE notification, acceptance etc. which you have correctly cited. I don’t see any room for personal views or interpretation for those, as they are quite clear.

The only implication of adherence (or lack of) to the early warning process is the way the CE will be assessed (see clauses 61.5 and 63.7).

You should therefore, in my view, insist on proper contract administration, and that also includes the communications for notifications and certificates to be separate.

I hope this helps.