{
  "query": "NEC4 contract quotation assessment period and project manager duties",
  "raw_results": [
    {
      "url": "https://www.neccontract.com/news/when-and-why-nec-project-managers-have-to-assess-compensation-events?srsltid=AfmBOorYq1nkEoVjnjEfM3cU0iPMOTs5y6rxpleK2fTiODdfSmyBos7Q",
      "title": "When and why NEC project managers have to assess compensation events | News | NEC Contracts",
      "content": "However, there is no similar provision for the project manager when the contractor fails to submit its quotation within the three-week period, presenting a potentially dangerous cliff edge for the contractor. The project manager could remind the contractor of the need to submit in the last few days leading up to the end of three-week period. Such action by the project manager could avoid the burden of the assessment falling to the project manager. It could also trigger a discussion and possible agreement between the project manager and the contractor to extend the period (clause 62.5). [...] The contractor’s obligation to submit a compensation event quotation and details of the assessment is stated in clause 62.2. The time allowed for submission is three weeks following instruction by the project manager (clause 62.3). Clause 62.6 also allows the contractor to notify the project manager of the project manager’s failure to respond to a quotation, giving rise to an automatic extension to the period in which the project manager must respond. [...] The contractor is required to submit its quotation within three weeks of the project manager’s instruction (clause 62.3). This period may be longer if the project manager and contractor agree to extend the time allowed (clause 62.5). The requirements for submission and acceptance of a programme, as required by clause 31 and 32, are separate to the compensation event assessment process.  \n  \nHowever, the assessment of a change to the completion date due to a compensation event relies on the existence of up-to-date accepted programme. This fourth reason reinforces the importance of the contractor submitting regular programmes which comply with the contract and are therefore capable of being accepted by the project manager.",
      "score": 0.8184036,
      "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. [...] requested or advises the correction of the errors in its assessment within four weeks of the Project Manager’s notification. The Project Manager reviews the records provided, and within four weeks • accepts the cost as correct or • notifies the Contractor of the correct assessment of that part of Defined Cost. [...] finalised, and makes available for inspection the records necessary to demonstrate that it has been correctly assessed. The Project Manager reviews the records made available, and no later than thirteen weeks after the Contractor’s notification • accepts that part of Defined Cost as correct, • notifies the Contractor that further records are needed or • notifies the Contractor of errors in its assessment. 65 Updating from NEC3 to NEC4 Main Option C » 50.9 con’t – The Contractor provides any further records requested or advises the correction of the errors in its assessment within four weeks of the Project Manager’s notification. The Project Manager reviews the records provided, and within four weeks • accepts the cost as correct or • notifies the Contractor of the correct assessment of",
      "score": 0.78846955,
      "raw_content": null
    },
    {
      "url": "https://www.neccontract.com/news/understanding-the-contractual-and-legal-roles-of-nec-project-managers?srsltid=AfmBOorizjV3fM-wrwA0twDiPBpu2IOkz811M-Pf7P5GDgZDZt-3DMZ0",
      "title": "Understanding the contractual and legal roles of NEC project managers | News | NEC Contracts",
      "content": "With regards to compensation events, the time and money consequences are initially dealt with in the contractor’s quotation, which is assessed in accordance with clause 63. If the project manager does not agree with the contractor’s assessment, they have a duty under clause 64 to make their own assessment, again in accordance with clause 63. Keating on NEC (Thomas, 2022) suggests an idea of judgement or appraisal, which means the project manager should use their professional skill and ensure their assessment is fair and unbiased as well as in accordance with the contract. [...] ## Key Points\n\nThis article looks at the role of the NEC4 Engineering and Construction Contract (ECC) project manager, in particular when they are required to make decisions involving acceptance of programmes and assessment of compensation events.  \n  \nIt is important that project managers understand both what their clients and contracts require of them and their legal obligation to act impartially. Fully embracing these dual roles will help to improve the quality of their decision making.\n\n## Blurring of boundaries",
      "score": 0.7813477,
      "raw_content": null
    },
    {
      "url": "https://www.gatherinsights.com/en/nec4/response-periods",
      "title": "NEC4 Response Periods: Complete Deadlines Guide",
      "content": "Stage 3: Assessment (clause 62). The PM has two weeks from the Contractor's last submitted quotation to respond. The PM may accept the quotation, instruct a revised quotation, or make their own assessment under clause 64. If the PM does not reply within two weeks, the Contractor may notify the PM that the quotation is treated as accepted. The Contractor must actively issue this notification — deemed acceptance is not triggered automatically by the passage of time. Once the Contractor issues the notification, the quotation is accepted and the change to the Prices, Completion Date, and Key Dates is final.\n\n## Deemed Acceptance: When Silence Becomes Consent [...] Fixed periods written into the contract clauses. These are the same on every NEC4 ECC project regardless of what the parties agree in Contract Data. The most commercially significant are in the compensation event procedures: the eight-week notification window (clause 61.3), the one-week PM response to a CE notification (clause 61.4), the three-week quotation period (clause 62.3), and the two-week PM response to a quotation (clause 62.6). The PM's two-week acceptance window for a programme submission (clause 31.3) also falls in this category. These periods cannot be varied by Contract Data. [...] Under clause 62.6, the Contractor may notify the PM that as the PM has not replied within two weeks, the quotation is treated as accepted. The Contractor must actively issue this notification — deemed acceptance does not arise automatically from the passage of time. Once the Contractor sends the clause 62.6 notification, the quotation is treated as accepted and the Prices, Completion Date, and Key Dates change accordingly. The PM cannot reopen the assessment unless they pursue adjudication under Option W1 or W2.\n\n### Does the eight-week time bar apply to the Project Manager as well as the Contractor?",
      "score": 0.76596165,
      "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": "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 [...] 7. Compensation event assessment: If the Project Manager has not accepted a Contractor’s quotation and stated they will make their own assessment, they have the same time that the Contractor had initially for their quote to make that assessment. If they do not issue their assessment within the time allowed, the Contractor can once again notify a reminder. If the Project Manager does not respond within a further two weeks of the reminder, then the original Contractor quotation that had been rejected is now contractually “deemed accepted”. [...] 8. Clause 50.9 Assessing the amount due: ECC options C/D/E/F allow the finalisation of elements of Defined Cost for part of the works. The Project Manager reviews the records submitted by the Contractor within thirteen weeks of the notification. The Contractor provides any further records/clarifications within four weeks if the Project Manager notifies such requirement within that period. The Project Manager reviews those records within a further four weeks and responds with their acceptance or with their own assessment. If they do not respond within this final four-week period, then the records of the Contractor’s Defined Costs are treated as accepted at this point.",
      "score": 0.683948,
      "raw_content": null
    }
  ],
  "formatted": "Source: When and why NEC project managers have to assess compensation events | News | NEC Contracts\nURL: https://www.neccontract.com/news/when-and-why-nec-project-managers-have-to-assess-compensation-events?srsltid=AfmBOorYq1nkEoVjnjEfM3cU0iPMOTs5y6rxpleK2fTiODdfSmyBos7Q\nHowever, there is no similar provision for the project manager when the contractor fails to submit its quotation within the three-week period, presenting a potentially dangerous cliff edge for the contractor. The project manager could remind the contractor of the need to submit in the last few days leading up to the end of three-week period. Such action by the project manager could avoid the burden of the assessment falling to the project manager. It could also trigger a discussion and possible agreement between the project manager and the contractor to extend the period (clause 62.5). [...] The contractor’s obligation to submit a compensation event quotation and details of the assessment is stated in clause 62.2. The time allowed for submission is three weeks following instruction by the project manager (clause 62.3). Clause 62.6 also allows the contractor to notify the project manager of the project manager’s failure to respond to a quotation, giving rise to an automatic extension to the period in which the project manager must respond. [...] The contractor is required to submit its quotation within three weeks of the project manager’s instruction (clause 62.3). This period may be longer if the project manager and contractor agree to extend the time allowed (clause 62.5). The requirements for submission and acceptance of a programme, as required by clause 31 and 32, are separate to the compensation event assessment process. However, the assessment of a change to the completion date due to a compensation event relies on the existence of up-to-date accepted programme. This fourth reason reinforces the importance of the contractor submitting regular programmes which comply with the contract and are therefore capable of being accepted by the project manager.\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. [...] requested or advises the correction of the errors in its assessment within four weeks of the Project Manager’s notification. The Project Manager reviews the records provided, and within four weeks • accepts the cost as correct or • notifies the Contractor of the correct assessment of that part of Defined Cost. [...] finalised, and makes available for inspection the records necessary to demonstrate that it has been correctly assessed. The Project Manager reviews the records made available, and no later than thirteen weeks after the Contractor’s notification • accepts that part of Defined Cost as correct, • notifies the Contractor that further records are needed or • notifies the Contractor of errors in its assessment. 65 Updating from NEC3 to NEC4 Main Option C » 50.9 con’t – The Contractor provides any further records requested or advises the correction of the errors in its assessment within four weeks of the Project Manager’s notification. The Project Manager reviews the records provided, and within four weeks • accepts the cost as correct or • notifies the Contractor of the correct assessment of\n\n---\n\nSource: Understanding the contractual and legal roles of NEC project managers | News | NEC Contracts\nURL: https://www.neccontract.com/news/understanding-the-contractual-and-legal-roles-of-nec-project-managers?srsltid=AfmBOorizjV3fM-wrwA0twDiPBpu2IOkz811M-Pf7P5GDgZDZt-3DMZ0\nWith regards to compensation events, the time and money consequences are initially dealt with in the contractor’s quotation, which is assessed in accordance with clause 63. If the project manager does not agree with the contractor’s assessment, they have a duty under clause 64 to make their own assessment, again in accordance with clause 63. Keating on NEC (Thomas, 2022) suggests an idea of judgement or appraisal, which means the project manager should use their professional skill and ensure their assessment is fair and unbiased as well as in accordance with the contract. [...] ## Key Points This article looks at the role of the NEC4 Engineering and Construction Contract (ECC) project manager, in particular when they are required to make decisions involving acceptance of programmes and assessment of compensation events. It is important that project managers understand both what their clients and contracts require of them and their legal obligation to act impartially. Fully embracing these dual roles will help to improve the quality of their decision making. ## Blurring of boundaries\n\n---\n\nSource: NEC4 Response Periods: Complete Deadlines Guide\nURL: https://www.gatherinsights.com/en/nec4/response-periods\nStage 3: Assessment (clause 62). The PM has two weeks from the Contractor's last submitted quotation to respond. The PM may accept the quotation, instruct a revised quotation, or make their own assessment under clause 64. If the PM does not reply within two weeks, the Contractor may notify the PM that the quotation is treated as accepted. The Contractor must actively issue this notification — deemed acceptance is not triggered automatically by the passage of time. Once the Contractor issues the notification, the quotation is accepted and the change to the Prices, Completion Date, and Key Dates is final. ## Deemed Acceptance: When Silence Becomes Consent [...] Fixed periods written into the contract clauses. These are the same on every NEC4 ECC project regardless of what the parties agree in Contract Data. The most commercially significant are in the compensation event procedures: the eight-week notification window (clause 61.3), the one-week PM response to a CE notification (clause 61.4), the three-week quotation period (clause 62.3), and the two-week PM response to a quotation (clause 62.6). The PM's two-week acceptance window for a programme submission (clause 31.3) also falls in this category. These periods cannot be varied by Contract Data. [...] Under clause 62.6, the Contractor may notify the PM that as the PM has not replied within two weeks, the quotation is treated as accepted. The Contractor must actively issue this notification — deemed acceptance does not arise automatically from the passage of time. Once the Contractor sends the clause 62.6 notification, the quotation is treated as accepted and the Prices, Completion Date, and Key Dates change accordingly. The PM cannot reopen the assessment unless they pursue adjudication under Option W1 or W2. ### Does th\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/\nIf 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 [...] 7. Compensation event assessment: If the Project Manager has not accepted a Contractor’s quotation and stated they will make their own assessment, they have the same time that the Contractor had initially for their quote to make that assessment. If they do not issue their assessment within the time allowed, the Contractor can once again notify a reminder. If the Project Manager does not respond within a further two weeks of the reminder, then the original Contractor quotation that had been rejected is now contractually “deemed accepted”. [...] 8. Clause 50.9 Assessing the amount due: ECC options C/D/E/F allow the finalisation of elements of Defined Cost for part of the works. The Project Manager reviews the records submitted by the Contractor within thirteen weeks of the notification. The Contractor provides any further records/clarifications within four weeks if the Project Manager notifies such requirement within that period. The Project Manager reviews those records within a further four weeks and responds with their acceptance or with their own assessment. If they do not respond within this final four-week period, then the records of the Contractor’s Defined Costs are treated as accepted at this point."
}