NEC3/4 Compensation Events – Intermediate
- Explanation of different compensation events in ECC (NEC3 and NEC4).
- Compensation event processes - notification, quotation, assessment, and implementation.
- Preparation of programs to support compensation event quotations.
- Common issues with compensation events and how to manage them.
- Learn about liability, early warnings, and Accepted Programme in compensation events.
Overview
This course focuses on understanding and managing compensation events in ECC contracts (NEC3 and NEC4). It covers processes such as notification, quotation, assessment, and implementation, as well as preparing programs to support quotations. Suitable for project managers, contractors, quantity surveyors, and clients, the course explores liability, early warnings, cost and time assessments, risk allowances, and changes from NEC3 to NEC4. Participants engage in case studies and exercises to apply learned principles. The one-day program includes sessions on event types, processes, quotation preparation, and program use.
Who should attend
Project Managers, Contractors, Quantity Surveyors, Clients
Key elements
- Explanation of the different types of compensation events in the ECC (NEC3 and NEC4)
- Compensation event processes – notification, quotation, assessment and implementation
- Compensation event timings
- Preparation of programmes to support compensation event quotations
- Link to the early warning process
- Common issues with compensation events and how to manage them
Recommended for
- Project managers responsible for the notification, assessment and implementation of compensation events
- Contractors and subcontractors responsible for the notification, quotation, and assessment of compensation events
- Quantity surveyors responsible for assessment of compensation events under option A, B and C ECC contracts
- Clients wanting to understand compensation event mechanisms
You will learn about:
- what is a compensation event – whose liability?
- the separate compensation event processes involved with each event i.e. notification, quotation, assessment and implementation
- the difference and interaction between early warnings and compensation events
- the part that the Accepted Programme plays in assessing the time and cost associated with each compensation event
- identifying and preparing quotations for compensation events and how they should be subsequently assessed.
- how time and cost risk allowances are made
- how to apply the principles learned in a number of case studies
- changes from NEC3 to NEC4 that affect the compensation event process
Outline of the day’s programme
0900 – 0915 Registration and refreshments
0915 – 0930 Introductions and course overview
0930 – 1100 Session 1 – What are the compensation events
- NEC3 ECC types of compensation events
- Additional compensation events in NEC4
- Common compensation event issues in practice
- Importance of record keeping (and the role of the Supervisor and site agent)
- Exercise – identifying genuine compensation events
1115 – 1245 Session 2 – Compensation event processes
- Prior requirement to notify early warnings
- Notification by Project Manager
- Notification by Contractor
- Proposed instructions
- Quotation
- Assessment
- Implementation
- Exercise – interactive quiz on contract requirements
1330 – 1500 Session 3 – Preparing the quotation
- Using rates and quantities (options A/B)
- People rates (NEC4 revisions)
- Short(er) Schedule of Cost Components (options A/B)
- Schedule of Cost Components (options C-F)
- Exercise – preparing a quotation using SSCC
1515 – 1615 Session 4 – Use of programme in compensation event quotations
- Accepted Programme
- Dealing with multiple concurrent compensation events
- Time risk allowance
- NEC4 Advice Note 1 – Rules for assessing compensation events against an Accepted Programme.
- Exercise – Importance of the order in which compensation events are applied to the programme
1615 – 1630 Summing Up/Q&A
Duration:1 Day
Cost:£245 + Vat
NEC3/4 Compensation Events Training Scotland, Edinburgh, Aberdeen, Perth, England, Leeds, Birmingham, Newcastle, and Liverpool onsite course available throughout the UK.
