Retrospective assessment of delay for compensation events

NEC3 and NEC4 Contracts Compensation Events
1

In the context of our NEC3 Option A ECC contract, we, as the Contractor, have faced a significant project delay due to factors beyond our control; namley Others not adhering to the agreed-upon schedule outlined in the then Accepted Programme. These issues have since been resolved, and throughtout we have continued with the project by resequencing works and submitting revised programmes for acceptance.

Now that we have a understanding of the delays, we are considering whether it is appropriate to notify a compensation event under clause 60.1 (5) of the contract.

This would pertain to the time and cost delay for activities yet to be completed. The entitlement would show the difference between when they were originally planned in the Accepted Programme (before the delay occurred) and the latest Accepted Programme. Would this be appropriate?

Our contact contains does not contain secondary option clauses: X1, X2, or X7.

2

Pete, I would strongly suggest that you notify that CE asap; unless it arose from an instruction, you could be time-barred after eight weeks of becoming aware of it (see cl. 61.3).

I appreciate that you waited till you have an understanding of the delays but these issues are resolved by the PM stating assumption(s) upon acceptance of the CE and instruction to submit quotations (cl. 61.6).