{
  "query": "NEC4 Clause 64.1 PM assessment criteria and requirements",
  "raw_results": [
    {
      "url": "https://www.necplanningsolutions.co.uk/post/nec4-compensation-events-when-the-project-manager-can-make-their-own-assessment-clause-64-and-how",
      "title": "NEC4 Clause 64 Compensation Event: PM's Own Assessment",
      "content": "## What clause 64 actually does\n\nClause 64.1 of NEC4 sets out the four circumstances in which the project manager makes their own assessment of a compensation event. The contractor failed to submit a required quotation and details of the assessment within the time allowed. The project manager decides that the contractor has not assessed the compensation event correctly in a quotation, and the project manager does not instruct the contractor to submit a revised quotation. The contractor failed to submit a revised quotation that the project manager instructed. When the compensation event occurred, the contractor had not submitted the alterations to the accepted programme or other relevant information that the project manager requires. [...] In four circumstances under clause 64.1: the contractor failed to submit a quotation within the time allowed, the quotation submitted was not correctly assessed and the project manager does not instruct a revised quotation, the contractor failed to submit a revised quotation that was instructed, or the contractor had not submitted the alterations to the accepted programme or other relevant information when the compensation event occurred. These four conditions are the only valid triggers for a clause 64 assessment.\n\n### What does \"not correctly assessed\" mean in clause 64.1? [...] The question of how the project manager should approach a clause 64 assessment connects to a broader question about the project manager's role under NEC contracts. The project manager is appointed and paid by the employer. The project manager is also required by the contract to act in specific ways: to administer the contract as written, to apply the rules in clauses 63 and 64 honestly, and (under NEC4 clause 10.2) to act in a spirit of mutual trust and co-operation.",
      "score": 0.8358192,
      "raw_content": null
    },
    {
      "url": "https://www.neccontract.com/news/when-and-why-nec-project-managers-have-to-assess-compensation-events?srsltid=AfmBOophOwpxiljbTefD8s_jEehKXaSubJLzhzUnwm9jXhA-9MmCiA83",
      "title": "When and why NEC project managers have to assess ...",
      "content": "| NEC4 ECC clause 64.1 bullet point number | Bullet point text | Key linked sub-clauses |\n --- \n| 1 | if the Contractor has not submitted the quotation and details of its assessment within the time allowed | 62.2, 62.3, 62.5, 63.1, 63.5 |\n| 2 | if the Project Manager decides that the Contractor has not assessed the compensation event correctly in the quotation and has not instructed the Contractor to submit a revised quotation | 62.3, 63 |\n| 3 | if, when the Contractor submits quotations for the compensation event, it has not submitted a programme or alterations to a programme which the contract requires it to submit | 62.2 | [...] The four reasons why an NEC project manager should make their own assessment of a compensation event are stated in ECC clause 64.1. Each reason describes a failure by the contractor to comply with its obligations and relates to programme and the compensation event process (see Table 1).  \n  \nNEC contracts use the word ‘may’ to indicate that an action is discretionary. However, this word is not used in clause 64.1 so the project manager’s obligation is mandatory when one or more of the stated reasons apply. The approach taken by the contract to assessing compensation events is generally a prospective one. It requires the effects of change to be dealt with as soon as they arise so as to reduce uncertainty for the parties at the end of the contract. [...] The contractual obligation to include, ‘alterations to the accepted programme,’ with a quotation applies when, ‘the programme for remaining work is altered by the compensation event’ (clause 62.2). If the compensation event results in a change to the date for planned completion, this will clearly have altered remaining work. Assessing a change to the completion date (clause 63.5) involves using the accepted programme current at the dividing date (as defined in clause 63.1). While not specified as a requirement under the contract, it is good practice to identify the dividing date on the programme submitted with the quotation. The remaining work on the critical path of the programme could be altered and result in an earlier date for planned completion; a situation which does not change the",
      "score": 0.8058924,
      "raw_content": null
    },
    {
      "url": "https://www.neccontract.com/news/when-and-why-nec-project-managers-have-to-assess-compensation-events?srsltid=AfmBOop_uCASX-soTA26ZY4jNUjhnoFS2213-5O_mhb5PtfZA55MaEKC",
      "title": "When and why NEC project managers have to assess ...",
      "content": "| NEC4 ECC clause 64.1 bullet point number | Bullet point text | Key linked sub-clauses |\n --- \n| 1 | if the Contractor has not submitted the quotation and details of its assessment within the time allowed | 62.2, 62.3, 62.5, 63.1, 63.5 |\n| 2 | if the Project Manager decides that the Contractor has not assessed the compensation event correctly in the quotation and has not instructed the Contractor to submit a revised quotation | 62.3, 63 |\n| 3 | if, when the Contractor submits quotations for the compensation event, it has not submitted a programme or alterations to a programme which the contract requires it to submit | 62.2 | [...] The four reasons why an NEC project manager should make their own assessment of a compensation event are stated in ECC clause 64.1. Each reason describes a failure by the contractor to comply with its obligations and relates to programme and the compensation event process (see Table 1).  \n  \nNEC contracts use the word ‘may’ to indicate that an action is discretionary. However, this word is not used in clause 64.1 so the project manager’s obligation is mandatory when one or more of the stated reasons apply. The approach taken by the contract to assessing compensation events is generally a prospective one. It requires the effects of change to be dealt with as soon as they arise so as to reduce uncertainty for the parties at the end of the contract. [...] The contractual obligation to include, ‘alterations to the accepted programme,’ with a quotation applies when, ‘the programme for remaining work is altered by the compensation event’ (clause 62.2). If the compensation event results in a change to the date for planned completion, this will clearly have altered remaining work. Assessing a change to the completion date (clause 63.5) involves using the accepted programme current at the dividing date (as defined in clause 63.1). While not specified as a requirement under the contract, it is good practice to identify the dividing date on the programme submitted with the quotation. The remaining work on the critical path of the programme could be altered and result in an earlier date for planned completion; a situation which does not change the",
      "score": 0.8058924,
      "raw_content": null
    },
    {
      "url": "https://www.neccontract.com/news/when-and-why-nec-project-managers-have-to-assess-compensation-events?srsltid=AfmBOopm9WK7e-CSmFZCguQn8G_mxHu5DpGhIPxZKjGmeL0P6lUGpMxt",
      "title": "When and why NEC project managers have to assess ...",
      "content": "| NEC4 ECC clause 64.1 bullet point number | Bullet point text | Key linked sub-clauses |\n --- \n| 1 | if the Contractor has not submitted the quotation and details of its assessment within the time allowed | 62.2, 62.3, 62.5, 63.1, 63.5 |\n| 2 | if the Project Manager decides that the Contractor has not assessed the compensation event correctly in the quotation and has not instructed the Contractor to submit a revised quotation | 62.3, 63 |\n| 3 | if, when the Contractor submits quotations for the compensation event, it has not submitted a programme or alterations to a programme which the contract requires it to submit | 62.2 | [...] The four reasons why an NEC project manager should make their own assessment of a compensation event are stated in ECC clause 64.1. Each reason describes a failure by the contractor to comply with its obligations and relates to programme and the compensation event process (see Table 1).  \n  \nNEC contracts use the word ‘may’ to indicate that an action is discretionary. However, this word is not used in clause 64.1 so the project manager’s obligation is mandatory when one or more of the stated reasons apply. The approach taken by the contract to assessing compensation events is generally a prospective one. It requires the effects of change to be dealt with as soon as they arise so as to reduce uncertainty for the parties at the end of the contract.",
      "score": 0.8058924,
      "raw_content": null
    },
    {
      "url": "https://www.ceca.co.uk/wp-content/uploads/2024/03/CECA-NEC-Bulletin-No.-39-The-Role-Of-The-Project-Manager-March-2024-2.pdf",
      "title": "[PDF] The Role Of The Project Manager - CECA NEC4 Bulletin",
      "content": "not accepting, they instruct the Contractor to resubmit a quotation or make the statement they will assess it themselves. If the Contractor does not submit a quotation within the time permitted (3 weeks), then the Project Manager should make their own assessment (clause 64.1). The conclusion of the whole compensation event process is the Project Manager ‘implementing’ the event, confirming the cost and time impact upon the Prices and the Completion Date (and/or Key Dates). As already highlighted within this bulletin, it is essential the Project Manager makes this assessment objectively and in accordance with the rules of the contract as any formal dispute process could be very costly in terms of cost, time and relationships for the Client if proven incorrect.",
      "score": 0.752468,
      "raw_content": null
    }
  ],
  "formatted": "Source: NEC4 Clause 64 Compensation Event: PM's Own Assessment\nURL: https://www.necplanningsolutions.co.uk/post/nec4-compensation-events-when-the-project-manager-can-make-their-own-assessment-clause-64-and-how\n## What clause 64 actually does Clause 64.1 of NEC4 sets out the four circumstances in which the project manager makes their own assessment of a compensation event. The contractor failed to submit a required quotation and details of the assessment within the time allowed. The project manager decides that the contractor has not assessed the compensation event correctly in a quotation, and the project manager does not instruct the contractor to submit a revised quotation. The contractor failed to submit a revised quotation that the project manager instructed. When the compensation event occurred, the contractor had not submitted the alterations to the accepted programme or other relevant information that the project manager requires. [...] In four circumstances under clause 64.1: the contractor failed to submit a quotation within the time allowed, the quotation submitted was not correctly assessed and the project manager does not instruct a revised quotation, the contractor failed to submit a revised quotation that was instructed, or the contractor had not submitted the alterations to the accepted programme or other relevant information when the compensation event occurred. These four conditions are the only valid triggers for a clause 64 assessment. ### What does \"not correctly assessed\" mean in clause 64.1? [...] The question of how the project manager should approach a clause 64 assessment connects to a broader question about the project manager's role under NEC contracts. The project manager is appointed and paid by the employer. The project manager is also required by the contract to act in specific ways: to administer the contract as written, to apply the rules in clauses 63 and 64 honestly, and (under NEC4 clause 10.2) to act in a spirit of mutual trust and co-oper\n\n---\n\nSource: When and why NEC project managers have to assess ...\nURL: https://www.neccontract.com/news/when-and-why-nec-project-managers-have-to-assess-compensation-events?srsltid=AfmBOophOwpxiljbTefD8s_jEehKXaSubJLzhzUnwm9jXhA-9MmCiA83\n| NEC4 ECC clause 64.1 bullet point number | Bullet point text | Key linked sub-clauses | --- | 1 | if the Contractor has not submitted the quotation and details of its assessment within the time allowed | 62.2, 62.3, 62.5, 63.1, 63.5 | | 2 | if the Project Manager decides that the Contractor has not assessed the compensation event correctly in the quotation and has not instructed the Contractor to submit a revised quotation | 62.3, 63 | | 3 | if, when the Contractor submits quotations for the compensation event, it has not submitted a programme or alterations to a programme which the contract requires it to submit | 62.2 | [...] The four reasons why an NEC project manager should make their own assessment of a compensation event are stated in ECC clause 64.1. Each reason describes a failure by the contractor to comply with its obligations and relates to programme and the compensation event process (see Table 1). NEC contracts use the word ‘may’ to indicate that an action is discretionary. However, this word is not used in clause 64.1 so the project manager’s obligation is mandatory when one or more of the stated reasons apply. The approach taken by the contract to assessing compensation events is generally a prospective one. It requires the effects of change to be dealt with as soon as they arise so as to reduce uncertainty for the parties at the end of the contract. [...] The contractual obligation to include, ‘alterations to the accepted programme,’ with a quotation applies when, ‘the programme for remaining work is altered by the compensation event’ (clause 62.2). If the compensation event results in a change to the date for planned completion, this will clearly have altered remaining work. Assessing a change to the completion date (clause 63.5) involves using the ac\n\n---\n\nSource: When and why NEC project managers have to assess ...\nURL: https://www.neccontract.com/news/when-and-why-nec-project-managers-have-to-assess-compensation-events?srsltid=AfmBOop_uCASX-soTA26ZY4jNUjhnoFS2213-5O_mhb5PtfZA55MaEKC\n| NEC4 ECC clause 64.1 bullet point number | Bullet point text | Key linked sub-clauses | --- | 1 | if the Contractor has not submitted the quotation and details of its assessment within the time allowed | 62.2, 62.3, 62.5, 63.1, 63.5 | | 2 | if the Project Manager decides that the Contractor has not assessed the compensation event correctly in the quotation and has not instructed the Contractor to submit a revised quotation | 62.3, 63 | | 3 | if, when the Contractor submits quotations for the compensation event, it has not submitted a programme or alterations to a programme which the contract requires it to submit | 62.2 | [...] The four reasons why an NEC project manager should make their own assessment of a compensation event are stated in ECC clause 64.1. Each reason describes a failure by the contractor to comply with its obligations and relates to programme and the compensation event process (see Table 1). NEC contracts use the word ‘may’ to indicate that an action is discretionary. However, this word is not used in clause 64.1 so the project manager’s obligation is mandatory when one or more of the stated reasons apply. The approach taken by the contract to assessing compensation events is generally a prospective one. It requires the effects of change to be dealt with as soon as they arise so as to reduce uncertainty for the parties at the end of the contract. [...] The contractual obligation to include, ‘alterations to the accepted programme,’ with a quotation applies when, ‘the programme for remaining work is altered by the compensation event’ (clause 62.2). If the compensation event results in a change to the date for planned completion, this will clearly have altered remaining work. Assessing a change to the completion date (clause 63.5) involves using the ac\n\n---\n\nSource: When and why NEC project managers have to assess ...\nURL: https://www.neccontract.com/news/when-and-why-nec-project-managers-have-to-assess-compensation-events?srsltid=AfmBOopm9WK7e-CSmFZCguQn8G_mxHu5DpGhIPxZKjGmeL0P6lUGpMxt\n| NEC4 ECC clause 64.1 bullet point number | Bullet point text | Key linked sub-clauses | --- | 1 | if the Contractor has not submitted the quotation and details of its assessment within the time allowed | 62.2, 62.3, 62.5, 63.1, 63.5 | | 2 | if the Project Manager decides that the Contractor has not assessed the compensation event correctly in the quotation and has not instructed the Contractor to submit a revised quotation | 62.3, 63 | | 3 | if, when the Contractor submits quotations for the compensation event, it has not submitted a programme or alterations to a programme which the contract requires it to submit | 62.2 | [...] The four reasons why an NEC project manager should make their own assessment of a compensation event are stated in ECC clause 64.1. Each reason describes a failure by the contractor to comply with its obligations and relates to programme and the compensation event process (see Table 1). NEC contracts use the word ‘may’ to indicate that an action is discretionary. However, this word is not used in clause 64.1 so the project manager’s obligation is mandatory when one or more of the stated reasons apply. The approach taken by the contract to assessing compensation events is generally a prospective one. It requires the effects of change to be dealt with as soon as they arise so as to reduce uncertainty for the parties at the end of the contract.\n\n---\n\nSource: [PDF] The Role Of The Project Manager - CECA NEC4 Bulletin\nURL: https://www.ceca.co.uk/wp-content/uploads/2024/03/CECA-NEC-Bulletin-No.-39-The-Role-Of-The-Project-Manager-March-2024-2.pdf\nnot accepting, they instruct the Contractor to resubmit a quotation or make the statement they will assess it themselves. If the Contractor does not submit a quotation within the time permitted (3 weeks), then the Project Manager should make their own assessment (clause 64.1). The conclusion of the whole compensation event process is the Project Manager ‘implementing’ the event, confirming the cost and time impact upon the Prices and the Completion Date (and/or Key Dates). As already highlighted within this bulletin, it is essential the Project Manager makes this assessment objectively and in accordance with the rules of the contract as any formal dispute process could be very costly in terms of cost, time and relationships for the Client if proven incorrect."
}