RICS in Bristol – NEC 4: Early warnings and assessing compensation events

Overview

A breakfast seminar hosted by Bristol Local Member Group presenting a practical briefing on the assessment of compensation events under the NEC Engineering and Construction Contract. The session deals head on with how to assess the effect a compensation event has on both the Prices and the Completion Date in accordance with the relevant provisions.

Refreshments and breakfast pasties will be provided.

Schedule

• 08:30 – Arrival and networking
• 09:30 – Presentation
• 10:45 – Q&A
• 11:00 – Close

Key topics

• Early warning notices and the impact on the assessment rules (how to properly conduct an early warning meeting)
• Effective notices of compensation events and the time bar provisions
• Assessing the effect on Defined Cost and the Completion Date and an explanation of the importance and practical effect of the ‘dividing date’.
• The legal position on basing an assessment on a forecast when actual cost is known
• What level of records does a Contractor have to provide to justify Defined Cost
• The use of instructing revised quotations to ensure actual Defined Cost is known at the time of assessment (is this permissible?)
• Correctly tendering or evaluating the relevant entries to Contract Data Part 2 using real life examples (e.g. working areas, people and equipment rates, design, and manufacturing rates, published list)
• Ascertaining and presenting risk allowances in quotations
• Using assumptions to reduce risk and uncertainty in preparing quotations
• The use of instructing revised quotations to ensure actual Defined Cost is known at the time of assessment (is this permissible?)
• Recovering the cost of preparing quotations