NEC4 claims Flashcards
What is the aim of compensation events under NEC4?
Events which occur that cause a delay but are not the fault of the contractor.
Risk of time and money is passed onto the client. e.g. variation
How does NEC4 deal with unforeseen ground conditions on site? Explain how the clause operates? How are inconsistencies/discrepancies in the site information dealt with?
Dealt with as a compensation event. The compensation event is only for the difference between conditions encountered and conditions which would have been acceptable.
This information should have been in site information or the contractor should have looked/investigated more.
How does NEC4 deal with delays or costs incurred by extremely adverse weather conditions (CE13)?
Client carries the financial risk
Weather compensation event
Weather measurements are made
What is the difference between assumptions and forecasts?
Assumptions - something you accept is true but no conclusive proof
Forecast - prediction, could be factual and based off some kind of objective data
How do costs submitted by a MC for a compensation event under NEC differ to those submitted under a claim for loss and expense(JCT SBC 16)?
Assessed as the effect of the event: defined cost for work already done plus the fee.
JCT - QS ascertains the amount of loss.
Do NEC4 contracts have a provision for force majeure?
Doesn’t mention it specifically but does provide for it under clause 60.1.
Often CE 13 is deleted from the contract. Advise a client on the consequences of this action.
CE13 - weather conditions
Client will carry the financial risk if the event is deleted..
What is the procedure for notifying CE?
covered in clause 61
contractor has to notify PM of CE within 8 weeks of becoming aware
What is the procedure for notifying CE?
covered in clause 61
contractor has to notify PM of CE within 8 weeks of becoming aware
notification - quotation - assessment
What are the responses a PM can make to a CE notification from the MC?
No - if the event is the contractors fault, if event has not occurred, it has no effect on the completion date, it is not one of the listed events
Yes - and an instruction to the contractor to provide a quote.
