{
  "query": "NEC4 contract quotation response times and consequences of delay",
  "raw_results": [
    {
      "url": "https://www.gatherinsights.com/en/nec4/response-periods",
      "title": "NEC4 Response Periods: Complete Deadlines Guide",
      "content": "Most commercial teams on NEC4 projects track one deadline: the eight-week time bar on compensation event notifications. That is one of more than 30 time obligations in the NEC4 Engineering and Construction Contract. The others are scattered across the core clauses, the main options, and Contract Data — and missing any of them has consequences. As Glenn Hide of GMH Planning noted in CECA Bulletin 34 on NEC4 contract timescales, there is a wide range of response periods across the contract that practitioners routinely overlook. [...] Gather tracks PM response deadlines automatically alongside Contractor notification deadlines. When the PM's two-week quotation response window is approaching expiry, the commercial team is alerted before it closes — so the clause 62.6 notification can be issued at the right moment, not missed entirely.\n\n## Five Common Mistakes with NEC4 Response Periods\n\n1. Only tracking Contractor deadlines. The eight-week time bar receives most attention because missing it destroys entitlement. But the PM has its own response deadlines with their own consequences. Teams that track only Contractor obligations miss the commercial value of PM deadline failures. The deemed acceptance provisions in clauses 61.4 and 62.6 exist specifically to be used. [...] ### What is the period for reply in NEC4?\n\nThe period for reply is a Contract Data entry under clause 13.3 that sets the standard response time for any NEC4 communication that does not have its own specific clause period. It applies to design submissions, subcontracting approvals, and other routine communications. It is agreed by the parties when the contract is executed and can vary from project to project — typically two weeks, but sometimes longer. It does not override specific clause periods such as the one-week CE notification response (clause 61.4) or the two-week CE quotation response (clause 62.6), which take precedence.\n\n### What happens if the PM does not respond to a CE quotation within two weeks?",
      "score": 0.8016413,
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    },
    {
      "url": "https://www.ceca.co.uk/wp-content/uploads/2023/10/CECA-NEC-Bulletin-No.34-%E2%80%93-Periods-for-response-in-NEC-contracts-October-2023.pdf",
      "title": "[PDF] Periods for response in NEC contracts - CECA NEC4 Bulletin",
      "content": "Parties would be as follows: ECC – Party A: Client/Project Manager, Party B: Contractor ECS – Party A: Contractor, Party B: Subcontractor PSC – Party A: Client/Service Manager, Party B: Consultant The table included below lists the communications that could be issued, and the response times within which they should be responded to. Responses can not be a “holding response”, i.e., a response to a compensation event quotation must be either acceptance or non-acceptance within two weeks, not a response within two weeks to state “we will get back to you in due course”. Response times can be extended on a case-by-case basis but only by agreement with both Parties (i.e., not Party A simply telling Party B they will take longer). It is also important to remember that the response times are the [...] also important to remember that the response times are the longest time that should be taken. They should not intentionally be responded to at the latest possible time that the contract allows. For a well-run, efficient project, the Parties should try to respond to each other well inside the stated contractual timescales. Where there is no specific timescale stated to respond for a particular type of communication, the response period will default to the “period for reply”, which is specific and identified for a project in Contract Data Part 1. Where something is issued for acceptance and the response is non-acceptance, clause 13.4 makes it clear that Party A has to state the reasons why they are not accepting in sufficient detail that allows Party B to correct the submission and be able [...] Unless otherwise stated the documents listed in the table will be issued by Party B and need to be responded to within the stated timescale by Party A. CECA NEC4 Bulletin For more information, contact CECA Southern Director David Allen on 07741 543468 or davidallen@cecasouth.co.uk CECA (Southern) Ltd, 2nd Floor, East Wing, Metro House, Northgate, Chichester, West Sussex, PO19 1BE Summary: Timescales need to be adhered to and could lead to a compensation event if not responded to on time. A number of specific timescales are stated in the contract, and all other communications that require a response will default to the “period for reply” to ensure every communication is responded to.",
      "score": 0.7418428,
      "raw_content": null
    },
    {
      "url": "https://www.civil.hku.hk/cicid/past_events/20190625/presentations/Updating_from_NEC3_to_NEC4__John_Battersby.pdf",
      "title": "[PDF] Updating from NEC3 to NEC4 GUIDELINES & ILLUSTRATIONS",
      "content": "The Contractor does not put a proposed instruction into effect. Clause 60 – Compensation Events 46 Updating from NEC3 to NEC4 » 65.2 – The Contractor submits quotations for a proposed instruction within three weeks of being instructed to do so by the Project Manager. The quotation is assessed as a compensation event. The Project Manager replies to the Contractor’s quotation by the date when the proposed instruction may be given. [...] [This change is made to encourage the Project Manager to act in a timely fashion.] Clause 31 – The programme 31 Updating from NEC3 to NEC4 » 36.1 – The Contractor and the Project Manager may propose to the other an acceleration to achieve Completion before the Completion Date. If the Project Manager and the Contractor are prepared to consider the proposed change, the Project Manager instructs the Contractor to provide a quotation. The instruction stated changes to the key Dates to be included in the quotation. The Contractor provides a quotation within three weeks of the instruction to do so. The Project Manager replies to the quotation within three weeks. Clause 36 – Acceleration 32 Updating from NEC3 to NEC4 36.1 Cont’d » The reply is: • a notification that the quotation is accepted or",
      "score": 0.68064564,
      "raw_content": null
    },
    {
      "url": "https://gmhplanning.co.uk/nec-downloads/lack-of-response-time-bars-and-deemed-acceptances-in-nec-contracts/",
      "title": "Lack of Response, Time-Bars and Deemed Acceptances in NEC Contracts - CECA Bulletin 59",
      "content": "3. There is however a practical problem here, whereby many of the existing cloud-based systems do not automate this process. Even though contractually the event is deemed accepted, the Contractor may still not be able to submit the quotation within that same system as it does not recognise automatically the deemed acceptance. A “super-user” will have to manually adjust this within the system (often not very quickly), once again slowing down a process that neither Party should want to be delaying.\n4. Compensation event quotation: If the Project Manager does not respond to a quotation within two weeks, then again, the Contractor can notify that fact. If they do not respond within a further two weeks, the quotation (i.e. cost and time) is deemed accepted. [...] 2. Compensation event notification: If the Project Manager does not respond to a notified compensation event within one week, then the Contractor may notify that fact.  If they do not respond within a further two weeks from the notification, the principle that the event is a compensation event is treated as having been accepted. The Contractor may now also submit the quotation. [...] If the Contractor does not produce a compensation event quotation within three weeks of being instructed to do so (or as extended by agreement under clause 62.5), then the Project Manager simply makes their own assessment (clause 64.1). This quotation is unlikely to be as informed, or higher than the Contractor would have assessed it to be, so it is very much in their interest to make sure that they do submit a quotation on time.\n\n## Uncorrected Defects",
      "score": 0.67758125,
      "raw_content": null
    },
    {
      "url": "https://sypro.co.uk/blogs/compensation-events-in-nec4-construction-contracts/",
      "title": "Compensation Events in NEC4 Construction Contracts | Sypro",
      "content": "### Step 4: Project manager assessment\n\nNext, the project manager has two weeks (unless otherwise agreed) to respond to the quotation. They can either accept it as-is, reject it with reasons or provide an alternative assessment of the time and cost impact.\n\nTheir assessment must be reasonable and follow contract procedures.\n\n### Step 5: Implementation\n\nThe compensation event is implemented when either the project manager accepts the contractor’s quotation, the project manager notifies their own assessment to the contractor or the contractor’s quotation is automatically accepted because the project manager hasn’t responded within the timescale.\n\nOnce implemented, the price and time adjustments made by the compensation events are final unless challenged by dispute",
      "score": 0.63939893,
      "raw_content": null
    }
  ],
  "formatted": "Source: NEC4 Response Periods: Complete Deadlines Guide\nURL: https://www.gatherinsights.com/en/nec4/response-periods\nMost commercial teams on NEC4 projects track one deadline: the eight-week time bar on compensation event notifications. That is one of more than 30 time obligations in the NEC4 Engineering and Construction Contract. The others are scattered across the core clauses, the main options, and Contract Data — and missing any of them has consequences. As Glenn Hide of GMH Planning noted in CECA Bulletin 34 on NEC4 contract timescales, there is a wide range of response periods across the contract that practitioners routinely overlook. [...] Gather tracks PM response deadlines automatically alongside Contractor notification deadlines. When the PM's two-week quotation response window is approaching expiry, the commercial team is alerted before it closes — so the clause 62.6 notification can be issued at the right moment, not missed entirely. ## Five Common Mistakes with NEC4 Response Periods 1. Only tracking Contractor deadlines. The eight-week time bar receives most attention because missing it destroys entitlement. But the PM has its own response deadlines with their own consequences. Teams that track only Contractor obligations miss the commercial value of PM deadline failures. The deemed acceptance provisions in clauses 61.4 and 62.6 exist specifically to be used. [...] ### What is the period for reply in NEC4? The period for reply is a Contract Data entry under clause 13.3 that sets the standard response time for any NEC4 communication that does not have its own specific clause period. It applies to design submissions, subcontracting approvals, and other routine communications. It is agreed by the parties when the contract is executed and can vary from project to project — typically two weeks, but sometimes longer. It does not override specific clause periods such as the one-\n\n---\n\nSource: [PDF] Periods for response in NEC contracts - CECA NEC4 Bulletin\nURL: https://www.ceca.co.uk/wp-content/uploads/2023/10/CECA-NEC-Bulletin-No.34-%E2%80%93-Periods-for-response-in-NEC-contracts-October-2023.pdf\nParties would be as follows: ECC – Party A: Client/Project Manager, Party B: Contractor ECS – Party A: Contractor, Party B: Subcontractor PSC – Party A: Client/Service Manager, Party B: Consultant The table included below lists the communications that could be issued, and the response times within which they should be responded to. Responses can not be a “holding response”, i.e., a response to a compensation event quotation must be either acceptance or non-acceptance within two weeks, not a response within two weeks to state “we will get back to you in due course”. Response times can be extended on a case-by-case basis but only by agreement with both Parties (i.e., not Party A simply telling Party B they will take longer). It is also important to remember that the response times are the [...] also important to remember that the response times are the longest time that should be taken. They should not intentionally be responded to at the latest possible time that the contract allows. For a well-run, efficient project, the Parties should try to respond to each other well inside the stated contractual timescales. Where there is no specific timescale stated to respond for a particular type of communication, the response period will default to the “period for reply”, which is specific and identified for a project in Contract Data Part 1. Where something is issued for acceptance and the response is non-acceptance, clause 13.4 makes it clear that Party A has to state the reasons why they are not accepting in sufficient detail that allows Party B to correct the submission and be able [...] Unless otherwise stated the documents listed in the table will be issued by Party B and need to be responded to within the stated timescale by Party A. CECA NEC4 Bulletin For more information\n\n---\n\nSource: [PDF] Updating from NEC3 to NEC4 GUIDELINES & ILLUSTRATIONS\nURL: https://www.civil.hku.hk/cicid/past_events/20190625/presentations/Updating_from_NEC3_to_NEC4__John_Battersby.pdf\nThe Contractor does not put a proposed instruction into effect. Clause 60 – Compensation Events 46 Updating from NEC3 to NEC4 » 65.2 – The Contractor submits quotations for a proposed instruction within three weeks of being instructed to do so by the Project Manager. The quotation is assessed as a compensation event. The Project Manager replies to the Contractor’s quotation by the date when the proposed instruction may be given. [...] [This change is made to encourage the Project Manager to act in a timely fashion.] Clause 31 – The programme 31 Updating from NEC3 to NEC4 » 36.1 – The Contractor and the Project Manager may propose to the other an acceleration to achieve Completion before the Completion Date. If the Project Manager and the Contractor are prepared to consider the proposed change, the Project Manager instructs the Contractor to provide a quotation. The instruction stated changes to the key Dates to be included in the quotation. The Contractor provides a quotation within three weeks of the instruction to do so. The Project Manager replies to the quotation within three weeks. Clause 36 – Acceleration 32 Updating from NEC3 to NEC4 36.1 Cont’d » The reply is: • a notification that the quotation is accepted or\n\n---\n\nSource: Lack of Response, Time-Bars and Deemed Acceptances in NEC Contracts - CECA Bulletin 59\nURL: https://gmhplanning.co.uk/nec-downloads/lack-of-response-time-bars-and-deemed-acceptances-in-nec-contracts/\n3. There is however a practical problem here, whereby many of the existing cloud-based systems do not automate this process. Even though contractually the event is deemed accepted, the Contractor may still not be able to submit the quotation within that same system as it does not recognise automatically the deemed acceptance. A “super-user” will have to manually adjust this within the system (often not very quickly), once again slowing down a process that neither Party should want to be delaying. 4. Compensation event quotation: If the Project Manager does not respond to a quotation within two weeks, then again, the Contractor can notify that fact. If they do not respond within a further two weeks, the quotation (i.e. cost and time) is deemed accepted. [...] 2. Compensation event notification: If the Project Manager does not respond to a notified compensation event within one week, then the Contractor may notify that fact. If they do not respond within a further two weeks from the notification, the principle that the event is a compensation event is treated as having been accepted. The Contractor may now also submit the quotation. [...] If the Contractor does not produce a compensation event quotation within three weeks of being instructed to do so (or as extended by agreement under clause 62.5), then the Project Manager simply makes their own assessment (clause 64.1). This quotation is unlikely to be as informed, or higher than the Contractor would have assessed it to be, so it is very much in their interest to make sure that they do submit a quotation on time. ## Uncorrected Defects\n\n---\n\nSource: Compensation Events in NEC4 Construction Contracts | Sypro\nURL: https://sypro.co.uk/blogs/compensation-events-in-nec4-construction-contracts/\n### Step 4: Project manager assessment Next, the project manager has two weeks (unless otherwise agreed) to respond to the quotation. They can either accept it as-is, reject it with reasons or provide an alternative assessment of the time and cost impact. Their assessment must be reasonable and follow contract procedures. ### Step 5: Implementation The compensation event is implemented when either the project manager accepts the contractor’s quotation, the project manager notifies their own assessment to the contractor or the contractor’s quotation is automatically accepted because the project manager hasn’t responded within the timescale. Once implemented, the price and time adjustments made by the compensation events are final unless challenged by dispute"
}