Reversing decision of CE under NEC3 ECC Clause 60.1 (8)

As the employer if you respond to a notification of a CE via CEMAR and tick the CE was notified correctly, can you reverse this decision under clause 60.1 (8) if the contractor isn’t entitled to these costs as it was carried out by someone else not associated with the main contractor?

First of all, what is the Employer doing responding to a notification? It is only the PM who can do this ! I will answer on that basis.

There are always two aspects to a compensation event:

  • is it a compensation event ? Yes/No and
  • the assessment of it.

You do not give details of what the original CE notification was about so it is hard to comment on the particular points. There is no express procedure anywhere in NEC for the Project Manager to change a decision, but the presence of this compensation event implies they can. So if this changed decision has cost the Contractor Defined Cost &/or time in some way, then it would be entitled to that.

However, if the original CE notification was still valid, but the Contractor incurred no time and cost as a result (because someone else did the work), then you should notify as such under clause 61.4, 3rd bullet (NEC3) or 6th bullet (NEC4) i.e. the Prices and Completion are not to be changed.

Hi Jon, my apologies I didn’t detail this correctly. A colleague of mine is the PM for the employer who responded to the notification.

The original CE was the contractor claiming for replacement of a defective telegraph pole to which they hadn’t carried out themselves, this was Openreach themselves who did this so not entitled to the costs.

Basically the PM selected CE notified correctly in CEMAR before looking in depth to what they were actually claiming for.

How would the PM go about notifying this under clause 61.4 if they’ve already selected the CE was notified correctly via CEMAR, the only option CEMAR give is to carry out a project managers assessment (PMA)