NEC3/4 Compensation Events – Intermediate

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.