NEC Early Warning Procedure Flashcards
What is the purpose of the Early Warning process?
The Early Warning process is for managing risks that may or may not occur. The Early Warning process is not for assessing compensation to the contractor.
When does the PM prepare the 1st Early Warning Register and when is the 1st Early Warning meeting?
The PM prepares the 1st Early Warning Register and issues it to the contractor within 1 week of the Starting Date.
The 1st Early Warning meeting is within 2 weeks of the Starting Date.
When/how often are other Early Warning Meetings held?
An Early Warning Meeting is held if either the PM or Contractor instructs a meeting or no longer interval than the interval stated in the Contract Data.
Who should raise an Early Warning notice?
Both the Contractor and PM can raise an Early Warning notice and there are sanctions if the Contractor doesn’t raise an Early Warning notice as they should.
When should an Early Warning notice be raised? (5 Points)
The PM or Contractor should raise an Early warning notice as soon as they become aware of a matter arising that:
1) Can delay the Completion Date.
2) Increase the total of the Prices.
3) Delay a Key Date
4) Increase the performance of the Work
5) Could increase the Contractor’s costs.
What follows an Early Warning notice?
The PM adds the matter to the Early Warning Register and calls an Early Warning Meeting.
Who attends the Early Warning Meeting?
The PM and the Contractor attend the Early Warning Meeting along with any other parties instructed to attend. The PM or Contractor can instruct other parties to attend (eg. subcontractors) if their attendance would assist in deciding actions to be taken.
What is expected of those who attend an Early Warning Meeting? (4 Points)
1) Making and considering proposals for how the effects of each matter in the Early Warning Register can be avoided or reduced.
2) Deciding on actions to be taken and who, in accordance with the contract, will take them.
3) Deciding which matters can be removed from the Early Warning Register.
4) Reviewing actions recorded in the Early Warning Register and deciding if different actions need to be taken.
What happens after the Early Warning Meeting? (3 Points)
1) The PM revises the Early Warning Register to record decisions made.
2) The PM issues the revised Early Warning Register to the Contractor within 1 week.
3) If the decision needs a change to the scope, the PM instructs the change at the same time as issuing the revised Early Warning Register.
Why would the Contractor make a proposal? (2 Points)
The Contractor may make a proposal to the PM to change the scope in order to:
1) Save the client money.
2) Add to the working areas.
What are the PM’s obligations after receiving a proposal from the Contractor? (2 Points)
1) Discuss the proposal with the Client and Contractor.
2) Make a decision on the proposal within 4 weeks by either; issuing an instruction or rejecting the proposal.
What 4 factors that could enhance the Early Warning processes?
1) Regular Early Warning Meetings so issues can be addressed as quickly as possible.
2) Encouraging good communication and transparency between parties.
3) Providing adequate training to all parties involved.
4) Ensuring the entire project team are committed to the Early Warning Process.
Give 2 examples of events where Early Warning should be notified.
1) Unexpected ground conditions.
2) Shortages of goods, materials or labour.
What are the consequences of the PM not using the Early Warning procedure correctly?
Consequences of the PM not using the Early Warning procedure correctly are not expressly stated in the contract but will likely result in an increase in cost or time or a degrade in performance of works.
What are the consequence of the Contractor not raising an Early Warning notice as soon as they become aware of an event?
If the Contractor does not notify an Early Warning when they become aware of it, they may not be reimbursed their full cost so their incentive is to be proactive.
