NEC3/4 Compensation Events – Intermediate

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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.

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