My compensation events are being refused? Every question we answer on it, grouped by subject.
A compensation event is an event your NEC4 contract lists as one that can change your price, your dates, or both.
No: a compensation event is wider than a variation, settles time and money together, and is usually priced from forecast cost.
An early warning notice flags anything that could add cost, cause delay or affect how the finished works perform, and you give it straight away.
In writing, through the communication system your subcontract names, as a separate notification that names the event, within 8 weeks of becoming aware.
You may lose the change to your price and dates, but whether you do depends on your subcontract's exact wording, its exceptions and the facts.
Three weeks from the instruction to quote under an unamended NEC4 ECC, with the reply due 2 weeks after that; your subcontract may set different periods.
Three things: the change to your price built from Defined Cost plus the Fee, any delay shown on a revised programme, and your assumptions.
It can be, but only after you notify the failure to reply and a further 2 weeks pass, under an unamended NEC4 contract.
Only when the month's measured weather is worse than the weather that happens once in 10 years at the place your contract names.
Clause 60.1 is the closed list of compensation events, and an event only counts if it fits one of them.
It makes an instruction that changes the Scope a compensation event, unless the change accepts a Defect or you asked for or caused it.
It makes late access a compensation event, so you can claim if you cannot get into part of the Site when the contract says you should.
It is a compensation event when your main contractor, or the Client in the main contract, fails to provide something by its date on the Accepted Programme.
It makes an instruction to stop work, not to start work, or to change a Key Date a compensation event.
It is a compensation event when your main contractor or others on site miss their programme times, break the Scope's conditions, or do unmentioned work there.
It makes it a compensation event when you get no reply to a communication within the period the contract gives for that reply.
It makes it a compensation event when a decision already given to you is changed.
It makes it a compensation event when acceptance of something you submitted is withheld for a reason the contract does not state.
It makes it a compensation event when you are told to search for a Defect and none is found, unless your own short notice caused the search.
It makes it a compensation event when a test or inspection your main contractor carries out causes you unnecessary delay.
It makes physical conditions on the Site a compensation event where an experienced contractor would have judged them too unlikely to allow for at the Contract Date.
It makes weather a compensation event only when a month's measurement at the named place is worse than the weather data show happens once in 10 years.
It makes an event the contract says is the Client's liability, or on a subcontract your main contractor's, a compensation event.
It makes early take-over of part of the works a compensation event, when it is certified before both Completion and the Completion Date.
When your main contractor notifies a correction to an assumption it stated about a compensation event, that correction is a new compensation event.
It makes a breach of contract by the Client, or on a subcontract your main contractor, a compensation event if no other one covers it.
It is the prevention event: something neither side could prevent, too unlikely to allow for, that stops you completing and fits no other compensation event.
It makes it a compensation event when your quotation for a proposed instruction is notified as not accepted.
It makes any extra compensation events written into the Contract Data count just like the numbered ones, notified, quoted and assessed the same way.
Both sides must give early warning of anything that could raise cost or cause delay, and a warning you failed to give can cut your later assessment.
In most cases you have 8 weeks from becoming aware of a compensation event to notify it, or you lose the change to your price and dates.
Your event can be refused on four grounds only, and silence after you notify the failure to reply means the event is treated as accepted.
You quote within 3 weeks, the reply is due within 2 weeks, and if none comes after you notify the failure, your quotation is treated as accepted.
The change to the Prices is the event's effect on actual Defined Cost before the dividing date and forecast Defined Cost after it, plus the Fee.
Your main contractor can make its own assessment on four grounds only, within the time you had to quote, or your quotation can be treated as accepted.
An event is implemented when a quotation is accepted, an own assessment is notified, or a quotation is treated as accepted, and after that it is not revised.
Defined Cost is the cost of the items listed in the contract's cost schedule, and anything not listed is treated as covered by the Fee.
The Fee is the Contract Data fee percentage applied to Defined Cost, and it is your only pay for overheads, profit and unlisted costs.
To your amended ones: every period is read from your signed subcontract and its amendment schedule, never assumed from the standard form.
Yes: each event is rated strong, arguable or weak on its evidence, and the weak ones are named plainly rather than carried in the total.