The correct way to make an assessment is set out at clause 63.5 being a delay to planned Completion shown on the Accepted Programme which is current at the dividing date. The dividing date is defined at 63.1.
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@stevencevans So the contractor is not allowed to hire equipment from a company with the same parent company? is that also deemed to be included in the fee? Or the contractor must hire the plant from a totally different company altogether?
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@stevencevans You advised that PMI should not be issued with a CE. What is PMI best used for?
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@stevencevans Is the notice not to be issued by the contract administrator to confirm possession rather than contractor or only contractor?
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@stevencevans in a secure building with a gated entrance with the works being to one floor within that building, who is securing that site? The Employer or the contractor.
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Yes, they are allowed to hire the Equipment from related companies, but when assessing the amount of Defined Cost for that Equipment it is necessary to use open market hire rates rather than the amount charged by the hire company. This avoids a situation where a Contractor and a related hire company could, between them, charge an inflated hire rate to artificially increase Defined Cost
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A PMI is any instruction issued by the PM and permitted by the contract. This could be an instruction to change the Scope, to change a Key Date, to stop the works, to start the works, to submit an updated programme for acceptance, and so on.
Instructions will be compensation events if the specific instruction is stated to be a compensation event at clause 60.1. For example, clause 60.1(1) is an instruction from the PM to change the Scope. Accordingly, any (with some stated exceptions) PM instruction to change the Scope will be a compensation event.
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I’m unsure which notice you are referring to?
I suggest you look at it from the other way around, who is liable for damage or loss in the event that someone breaks in. Who is responsible for insurance. The contract will set out those liabilities and responsibilities.
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In terms of a CE, there is an area that I have found that is a bit confusing with the way its stated in a NEC contract. Say a CE impacts planned completion and the CE is yet to be accepted. The way this is presented in the programme causes issues. For example, some believe that the contractual completion date should not be move until a CE is accepted as per stated in NEC. This I think is flawed as the programme is meant to reflect the reality of the project. So planned completion when impacted should also impact the contract completion date but it does not mean that the new impacted end date has been accepted. @stevencevans
Remember that planned Completion and the Completion Date are entirely seperate. The Completion Date is the date under the Contract by which the Contractor is legally required to complete the works. This starts off as the date in the Contract Data and can be made later by compensation events and earler by acceleration and acceptance of Defects.
Planned Completion is the date spat out by the programme showing the date the Contractor will complete the works and can be later or earlier (or possibly the same) as the Completion Date. The programme reflects the reality of the progress to date and the anticipated reality of any forecast delays, irrepective of whether they are caused by a compensation event.
Therefore, any delay is added to the programme, which will change planned Completion. The Completion Date will only change if that delay is caused by an event which is a compensation event and that compensation event has been implemented.
Is the additional bank holiday ie the coronation bank holiday consider as compensation event ? @stevencevans
Are you referring to changing the works information or the scope as changing the scope cannot be effected unilaterally and can only be within specific bounds i.e. you cannot change the scope to such an extent that the original scope is no longer applicable e.g. from building a school to building a block of flats @stevencevans
Could you provide ypur interpretation of the 'Project Manager makes an assessment within the time originally allowed for the Contractor? (64.3) @stevencevans
If X2 is incorporated into the contract (change in law) then it will probably be a compensation event as the relevant Act allows the monarch to proclaim a day to be a bank holiday. This proclamation will probably be caught by X2, but it is definatly caught by the time bar and so needs to be (or have been) notified promptly.
There is some argument that it could be a compensation event under 60.1(19), but the general consensus is that it would not be.
The Contractor must make an assessment and provide a quotation within 3 weeks of being instructed to do so. That time can be extended by agreement. If it becomes necessary for the PM to make an assessment of a compensation event, then the PM makes that assessment within whatever period the Contractor had to make its assessment for that same compensation event, either 3 weeks, if the time was not extended, or longer if the time was extended.
The contract does not expressly set a limit, but it is well established in case law that limits are implied into a construction contract. Those limits generally are variations cannot change the fundmental nature of the work or omit work so that it can be carried out by someone else.
is a drawing issue classed as an instruction? @stevencevans @chriscorr
What can a contractor do if they feel the PM assessment is unfair, and they are ignoring justification for costs incurred? @stevencevans @chriscorr
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Hi @toni.day if the PM has issued the assessment then the CE is implemented and neither Contractor or the PM can reassess or correct it under NEC. If both you were both in agreement that a mistake has been made and you both want to correct it, you could sign a supplementary agreement to override NEC. This is the cheapest way to correct an error if both sides agree. The Contractor can also challenge the PM assessment under NEC by referring the dispute to an Adjudicator or through litigation or arbitration depending on the entries in the contract data.
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