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NEC3 Contract Clauses > 60 Compensation Events > Flashcards

60 Compensation Events Flashcards

1
Q

60.1 (1)

A

The Project Manager gives an instruction changing the Works Information: except

  • a change made in order to accept a Defect or
  • a change to the Works Information provided by the Contractor for his design which is made either at his request or to comply with other Works Information provided by the Employer.
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2
Q

60.1 (2)

A

The Contractor does not allow access to and use of a part of the site by the later of its subcontract access date and the date shown on the accepted programme.

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3
Q

60.1 (3)

A

The Contractor does not provide something which he is to provide by the date for providing it shown on the accepted programme.

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4
Q

60.1 (4)

A

The Contractor gives an instruction to stop or not to start any work or to change a key date.

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5
Q

60.1 (5)

A

The Employer, the Contractor, or Others:

  • do not work within the times shown on the accepted programme,
  • do not work within the conditions stated in the subcontract works information, or
  • carry out work on site that is not stated in the subcontract works information.
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6
Q

60.1 (6)

A

The Contractor does not reply to a communication from the subcontractor within the period required by this subcontract.

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7
Q

60.1 (7)

A

The Contractor gives an instruction for dealing with an object of value or of historical importance or other interest found within the site.

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8
Q

60.1 (8)

A

The Contractor changes a decision which he has previously communicated to the subcontractor.

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9
Q

60.1 (9)

A

The Contractor withholds an acceptance(other than acceptance of a quotation for acceleration or for not correcting a defect) for a reason not stated in this subcontract.

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10
Q

60.1 (10)

A

The Contractor instructs the Subcontractor to search for a defect and no defect is found unless the search is needed only because the subcontractor gave insufficient notice of doing work obstructing a required test or inspection.

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11
Q

60.1 (11)

A

A test or inspection done by the Contractor or the Supervisor causes unnecessary delay.

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12
Q

60.1 (12)

A

The Subcontractor encounters physical conditions which

  • are within the Site
  • are not weather conditions and
  • an experienced subcontractor would have judged at the Subcontract Date to have such a small chance of occurring that it would have been unreasonable for him to have allowed for them.
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13
Q

60.1 (13)

A

A weather measurement is recorded:
- within a calendar month,
- before the Completion Date for the whole of the works and
- at the place stated in the Contract Data
the value of which, by comparison with the weather data, is shown to occur on average less frequently than once in ten years.
Only the difference between the weather measurement and the weather which the weather data show to occur on average less frequently than once in ten years is taken into account in assessing a compensation event.

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14
Q

60.1 (14)

A

An event which is an Employer’s or a Contractor’s risk stated in this subcontract.

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15
Q

60.1 (15)

A

The Contractor certifies take over of a part of the subcontract works before the Completion and the Subcontract Completion Date.

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16
Q

60.1 (16)

A

The Contractor or the Employer does not provide materials, facilities and samples for tests and inspections as stated in the Subcontract Works Information.

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17
Q

60.1 (17)

A

The Contractor notifies a correction to an assumption which he has stated about a compensation event.

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18
Q

60.1 (18)

A

A reach of subcontract by the Contractor which is not one of the other compensation events in this subcontract.

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19
Q

60.1 (19)

A

An event which:
- stops the Subcontractor completing the subcontract works or
-stops the Subcontractor completing the subcontract works by the date shown on the Accepted Programme,
and which
- neither Party could prevent,
- an experienced subcontractor would have judged at the Subcontract Date to have such a small chance of occurring that it would have been unreasonable for him to have allowed for it and
- is not one of the other compensation events stated in this subcontract.

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20
Q

60.2

A

In judging the physical conditions for the purpose of assessing a compensation event, the Subcontractor is expected to have taken into account:

  • the Site Information
  • publicly available information referred to in the Site Information
  • information obtainable from a visual inspection of the Site and
  • other information which an experienced subcontractor could reasonably be expected to have or obtain.
21
Q

60.3

A

If there is an ambiguity or inconsistency within the site information (including the information referred to in it), the Subcontractor is assumed to have taken into account the physical conditions more favourable to doing the work.

22
Q

61.1

A

For compensation events which arise from the Contractor giving an instruction, issuing a certificate, changing an earlier decision or correcting an assumption, the Contractor notifies the Subcontractor of the compensation event at the time of that communication. He also instructs the subcontractor to submit quotations, unless the event arises from the fault of the subcontractor or quotations have already been submitted. The Subcontractor puts the instruction or changed decision into effect.

23
Q

61.2

A

The Contractor may instruct the Subcontractor to submit quotations for a proposed instruction or a proposed changed decision into effect.

24
Q

61.3

A

The Subcontractor notifies the Contractor of an event which has happened or which he expects to happen as a compensation event if:
- the Subcontractor believes that the event is a compensation event and
- the Contractor has not notified the event to the Subcontractor.
If the Contractor does not notify a compensation event within seven weeks of becoming aware of the event, he is not entitled to a change in prices, the Subcontract on Date or a Key Date unless the event arises from the Contractor giving an instruction, issuing a contract, changing an earlier decision or correcting an assumption.

25
Q

61.4

A

If the Project Manager decides that an event notified by the Subcontractor
- arises from a fault of the Contractor,
- has not happened and is not expected to happen,
- has no effect upon Defined Cost, Completion or meeting a Key Date or
- is not one of the compensation events stated in this contract
he notifies the Contractor of his decision that the Prices, the Completion Date and the Key Dates are not to be changed. If the Project Manager decides otherwise, he notifies the Contractor accordingly and instructs him to submit quotations. The Project Manager notifies his decision to the Contractor and, if his decision is that the Prices, the Completion Date or the Key Dates are to be changed, instructs him to submit quotations before the end of either:
- one week after the Contractor’s notification or
- a longer period to which the Contractor has agreed.
If the Project Manager does not notify his decision, the Contractor may notify the Project Manager of his failure. A failure by the Project Manager to reply within two weeks of this notification is treated as acceptance by the Project Manager that the event is a compensation event and an instruction to submit quotations.

26
Q

61.5

A

If the Contractor decides that the Subcontractor did not give an earlier warning of the event which an experienced subcontractor could have given, he notifies this decision to the Subcontractor when he instructs him to submit quotations.

27
Q

61.6

A

If the Contractor decides that the effects of a compensation event are too uncertain to forecast reasonably, he states assumptions about the nature of the event in his instruction to the Subcontractor to submit quotations. Assessment of the event is based on these assumptions. If any of them is later found to have been wrong, the Contractor notifies a correction.

28
Q

61.7

A

A compensation event is not notified after the defects date.

29
Q

62.1

A

After discussing with the Subcontractor different ways of dealing with the compensation event which are practicable, the Contractor may instruct the Subcontractor to submit alternative quotations. The Subcontractor submits the required to the Contractor and may submit quotations for other methods if dealing with the compensation event which he considers practicable.

30
Q

62.2

A

Quotations for compensation events comprise proposed changes to the Prices and any delay to the Subcontractor. The Subcontractor submits the details of his assessment with each quotation. If the programme for remaining work is altered by the compensation event, the Subcontractor includes alterations to the Accepted Programme in his quotation.

31
Q

62.3

A

The Subcontractor submits quotations within one week of being instructed to do so by the Contractor. The Contractor replies within four weeks of the submission. His reply is:

  • an instruction to submit a revised quotation,
  • an acceptance of a quotation,
  • a notification that a proposed instruction will not be given or a proposed changed decision will not be made or
  • a notification that he will be making his own assessment
32
Q

62.4

A

The Contractor instructs the Subcontractor to submit a revised quotation after explaining his reasons for doing so to the Subcontractor. The Subcontractor submits the revised quotation within one week of being instructed to do so.

33
Q

62.5

A

The Contractor extends the time allowed for:
- the Subcontractor to submit quotations for a compensation event and
- the Contractor to reply to a quotation
if the Contractor and the Subcontractor agree to the extension before the submission or reply is due. The Contractor notifies the extension that has been agreed to the Subcontractor.

34
Q

63.1

A

The changes to the Prices are assessed as the effect of the compensation event upon:
- the actual Defined Cost of the work already done,
- the forecast Defined Cost of the work not yet done and
- the resulting fee
If the compensation event arose from the Contractor giving an instruction, issuing a certificate, changing earlier decision or correcting an assumption, the date which divides the work already done from the work not yet done is the date of that communication. In all other cases, the date is the date of the notification of the compensation event.

35
Q

63.2

A

If the effect of a compensation event is to reduce the total Defined Cost, the Prices are not reduced, except as stated in this subcontract.

36
Q

63.3

A

A delay to the Subcontract Completion Date is assessed as the length of time that, due to the compensation event, planned Completion is later than planned Completion as shown on the Accepted Programme. A delay to a Key Date is assessed as a length of time that, due to the compensation event, the planned date when the condition stated for a Key Date will be met is later than the date shown on the Accepted Programme.

37
Q

63.4

A

The rights of the Contractor and the Subcontractor to changes to the Prices, the subcontract Completion Date and the Key Dates are their only rights in respect of a compensation event.

38
Q

63.5

A

If the contractor has notified the Subcontractor to his decision that the Subcontractor did not give an early warning which an experienced contractor could have given, the event is assessed as if the Subcontractor had given early warning.

39
Q

63.6

A

Assessment of the effect of a compensation event includes risk allowances for cost and time for matters which have a significant chance of occurring and are at the Subcontractor’s risk under this subcontract.

40
Q

63.7

A

Assessments are based upon the assumptions that the Subcontractor reacts competently and promptly to the compensation event, that any Defined Cost and time due to the event are reasonably incurred and that the Accepted Programme can be changed.

41
Q

63.8

A

A compensation event which is an instruction to change the Subcontract Works Information in order to resolve an ambiguity or inconsistency is assessed as if the Prices, the Subcontract Completion Date and the Key Dates were for the interpretation most favourable to the Part which did not provide the Subcontract Works Information.

42
Q

63.9

A

If a change to the makes the description of the Condition for a Key Date incorrect, the Contractor corrects the description. This correction is taken into account in assessing the compensation event for the change to the Subcontract Works Information.

43
Q

64.1

A

The Contractor assesses a compensation event:

  • if the Subcontractor has not submitted a quotation and details of his assessment within the time allowed,
  • if the Contractor decides that the Subcontractor has not assessed the compensation event correctly in a quotation and he does not instruct the Subcontractor to submit a revised quotation.
  • if, when the Subcontractor submits quotations for a compensation event he has not submitted a programme or alterations to a programme which this subcontract requires him to submit or,
  • if, when the Subcontractor submits quotation for a compensation event, the Contractor has not accepted the Subcontractor’s latest programme for one of the reasons stated in this subcontract.
44
Q

64.2

A

The Contractor assess a compensation event using his own assessment of the programme for the remaining work if:

  • there is no accepted programme or,
  • the Subcontractor has not submitted a programme or alterations to a programme for acceptance as required by this subcontract.
45
Q

64.3

A

The Contractor notifies the Subcontractor of his assessment of a compensation event and gives him details of it within the period allowed for the Subcontractor’s submission of his quotation for the same event. This period starts when the need for the Contractor’s assessment becomes apparent.

46
Q

64.4

A

If the Contractor does not assess a compensation event within the time allowed, the Subcontractor may notify the Contractor does not reply within three week s of this notification the notification is treated as acceptance of the Subcontractor’s quotation he proposes is to be accepted. If the Contractor does not reply within 3 weeks of his notification the notification is treated as acceptance of the Subcontractor’s quotation by the Contractor.

47
Q

65.1

A

A compensation event is implemented when:

  • A Contractor notifies his acceptance of the Subcontractor’s quotation,
  • the Contractor notifies the Subcontractor of his own assessment or
  • A Subcontractor’s quotation is treated as having been accepted by the contractor.
48
Q

65.2

A

The assessment of a compensation event is not revised if a forecast upon which it is based is shown by later recorded information to have been wrong.

NEC3 Contract Clauses (1 decks)

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