Project Managers Incorrect Assessment

NEC3 and NEC4 Contracts Compensation Events
1

If a Project Manager makes an incorrect assessment, what are the possible recourses to correct it?

2

Informally you could try to convince the PM of their error however once a CE has been assessed and implemented the PM has no power to re-assess. You could also try discussing it with the Employer. If the informal approach fails your only recourse is adjudication although clause 65.2 may offer some hope but it’s by no means clear that this would succeed (hence NEC changing this clause in NEC4).

Might be worth checking your Z clauses as sometimes there is a consensual dispute resolution process stated.

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3

Thanks Neil for your comments. Unfortunately, we don’t have any Z clauses that would offer escape!

I am considering a new CE notification under 60.1(17) for correction to Project Managers assumptions. If that does not work then negotiate with the Client before following the Dispute Resolution procedure.

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