{
  "query": "NEC4 contract quotation assessment timelines and PM obligations",
  "raw_results": [
    {
      "url": "https://www.neccontract.com/news/when-and-why-nec-project-managers-have-to-assess-compensation-events",
      "title": "When and why NEC project managers have to assess compensation events | News | NEC Contracts",
      "content": "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. [...] ## Key Points\n\nCore clause 6 of the NEC4 Engineering and Construction Contract (ECC) provides a process for assessing the change to the prices and completion date due to a compensation event. The process includes mechanisms designed to ensure that when either the project manager or contractor do not comply with the contract, the assessment is concluded.  \n  \nOne such mechanism is the project manager’s obligation to undertake the assessment. This article explores the circumstances under which a project manager is required to perform their own assessment.\n\n## Obligation to assess",
      "score": 0.7803451,
      "raw_content": null
    },
    {
      "url": "https://www.gatherinsights.com/en/nec4/payment",
      "title": "NEC4 Payment: Clauses 50–53 Guide",
      "content": "Before each assessment date, the Contractor must submit an application for payment to the Project Manager. The application must include the amount the Contractor considers is due and details of how that amount has been assessed. This is a fundamental change from NEC3, where the Project Manager initiated the assessment without requiring an application from the Contractor.\n\nThe payment timetable under NEC4 with Y(UK)2 runs as follows:\n\nNEC4 payment timetable under Y(UK)2: 21 days from assessment date to final date for payment\n\nScroll to see full diagram [...] Scroll to see full diagram\n\n| Event | Timing | Clause |\n --- \n| Contractor submits application | Before the assessment date | 50.2 |\n| Assessment date | As stated in Contract Data Part 1 | 50.1 |\n| PM certifies the amount due | Within 1 week of the assessment date | 51.1 |\n| Payment becomes due (due date) | 1 week after the assessment date | Y2.2 |\n| Pay-less notice deadline | Not later than 7 days before the final date for payment | Y2.3 |\n| Final date for payment | 14 days after the due date (or as stated in Contract Data) | Y2.2 | [...] Worked Example\n\nPay-less notice timing\n\nAssessment date: 1 March. Due date (7 days later): 8 March. Final date for payment (14 days after due date): 22 March. Pay-less notice deadline (7 days before final date): 15 March.\n\nThe Contractor submits an application for £1,250,000. The PM certifies £1,150,000 on 5 March (within the 7-day window). The certified amount is the notified sum. If the Client wants to pay less than £1,150,000, a valid pay-less notice must be issued by 15 March at the latest. If no pay-less notice is issued, £1,150,000 must be paid by 22 March. If a pay-less notice is issued stating £980,000 with a valid basis, the Client pays £980,000 by 22 March and the difference is resolved through the dispute process.\n\n## Final Assessment",
      "score": 0.7593865,
      "raw_content": null
    },
    {
      "url": "https://www.youtube.com/watch?v=_Ct_95rsPWc",
      "title": "NEC4: Assessing compensation events part 2: Price",
      "content": "that's the the dividing date probably uh and the contractor has taken 180 days to price. So maybe they haven't put their quotation in. Um I mean if they take more than three weeks under the contract the project manager has to assess it. Uh so uh it's one of the rules under 64.1. um if you don't get quotation within within within the time allowed course you can extend that uh within that three-week period but if that's not happened then you have an obligation as a project manager to assess it yourself um so NEC is all about keeping the momentum uh if you I think the only way you could get to 180 days uh is that if you get stuck in that cycle of uh submitting within three weeks and replying within two weeks and your reply being I instruct revised you could in theory stretch it out to 180 Do [...] um or disben of course and don't take 180 days to do a quote. No, don't do that. And don't forget your obligation to assess it. Um have a look at clause 64.1. Right. Uh we'll probably pick up on this in the next episode. Actually, the last bullet point on that is an interesting one. Uh withholding acceptance to a program for a reason stated in the contract. So finding a reason of the contract, not withhold withholding acceptance program gives you the the task of assessing compensation as project manager. So, uh, just be careful. Do you want to take this one, D? Okay. So, Alex has said, \"It can be very difficult to deem if the contractor's quote based on the effect of the defined cost is accurate and then even harder to make an assessment. Do you have any advice on getting a true form of",
      "score": 0.74385756,
      "raw_content": null
    },
    {
      "url": "https://www.danielcms.co.uk/publications/news-blog/74-when-and-why-nec-project-managers-have-to-assess-compensation-events",
      "title": "When and why NEC project managers have to assess compensation events - Daniel CMS",
      "content": "The project manager’s obligation to intervene in the process when it is no longer possible or appropriate for the contractor to carry out the assessment reinforces the approach.\n\nReason 1: contractor misses submission deadline\n\nThe 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. [...] Email: davidhunter@danielcms.co.uk\n\n\n\n Home  \n Publications   \n Articles  \n When and why NEC project managers have to assess compensation events\n\n## When and why NEC project managers have to assess compensation events\n\nCore clause 6 of the NEC4 Engineering and Construction Contract (ECC) provides a process for assessing the change to the prices and completion date due to a compensation event. The process includes mechanisms designed to ensure that when either the project manager or contractor do not comply with the contract, the assessment is concluded.\n\nOne such mechanism is the project manager’s obligation to undertake the assessment. This article explores the circumstances under which a project manager is required to perform their own assessment.\n\nObligation to assess [...] Reason 4: contractor’s latest programme not accepted\n\nThe 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": 0.73023266,
      "raw_content": null
    },
    {
      "url": "https://reachback.builtintelligence.com/t/nec-ecc-timescales-for-contractors-ce-quotations-and-project-manager-assessments/5316",
      "title": "NEC ECC - Timescales for Contractors CE quotations and Project Manager assessments - Compensation Events - ReachBack",
      "content": "As you say the contract is clear that the Project Manager assesses if the Contractor has not submitted a quotation within the timescales. However, if they haven’t, there is no harm in the Contractor submitting a quote and they are certainly not restricted to do so. What the Project Manager chooses to do with that quotation is another question - although they would be pretty foolish not to look at it and consider it. I always say it is much easier for the PM to start with a Contractors quote and cross out what they don’t agree with, rather than starting from scratch from first principles. [...] Never an easy situation to keep on top of - but the alternative which is assess everything at the end which will be VERY time consuming and VERY subjective is far far worse for both Parties and no one has a clue on their relative liability.\n\nThanks Glenn, we are working together to get through the back log and making progress, but as you’ll appreciate it takes time, which means newer CEs are timing out.\n\nSo for clarity my reading of the above is that once the contractor’s time to issue the CEQ and the PMs time to issue the assessment has elapsed it will remain the remit of the PM to make an assessment?. That the PM can/should use any CEQs that come in after that time but it would still be defined as a PM assessment and dealt with as such? [...] Broadley yes, although I think the contract is silent on what happens if the Contractor does submit a quote late. Does the PM have to respond to that within two weeks, and if they don’t respond after a reminder would it be deemed accepted? Potentially yes, so as PM I would not run the risk and respond to the quote even if it is late to avoid such a loop.\n\n### Related topics",
      "score": 0.70336664,
      "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\nThe 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. [...] ## Key Points Core clause 6 of the NEC4 Engineering and Construction Contract (ECC) provides a process for assessing the change to the prices and completion date due to a compensation event. The process includes mechanisms designed to ensure that when either the project manager or contractor do not comply with the contract, the assessment is concluded. One such mechanism is the project manager’s obligation to undertake the assessment. This article explores the circumstances under which a project manager is required to perform their own assessment. ## Obligation to assess\n\n---\n\nSource: NEC4 Payment: Clauses 50–53 Guide\nURL: https://www.gatherinsights.com/en/nec4/payment\nBefore each assessment date, the Contractor must submit an application for payment to the Project Manager. The application must include the amount the Contractor considers is due and details of how that amount has been assessed. This is a fundamental change from NEC3, where the Project Manager initiated the assessment without requiring an application from the Contractor. The payment timetable under NEC4 with Y(UK)2 runs as follows: NEC4 payment timetable under Y(UK)2: 21 days from assessment date to final date for payment Scroll to see full diagram [...] Scroll to see full diagram | Event | Timing | Clause | --- | Contractor submits application | Before the assessment date | 50.2 | | Assessment date | As stated in Contract Data Part 1 | 50.1 | | PM certifies the amount due | Within 1 week of the assessment date | 51.1 | | Payment becomes due (due date) | 1 week after the assessment date | Y2.2 | | Pay-less notice deadline | Not later than 7 days before the final date for payment | Y2.3 | | Final date for payment | 14 days after the due date (or as stated in Contract Data) | Y2.2 | [...] Worked Example Pay-less notice timing Assessment date: 1 March. Due date (7 days later): 8 March. Final date for payment (14 days after due date): 22 March. Pay-less notice deadline (7 days before final date): 15 March. The Contractor submits an application for £1,250,000. The PM certifies £1,150,000 on 5 March (within the 7-day window). The certified amount is the notified sum. If the Client wants to pay less than £1,150,000, a valid pay-less notice must be issued by 15 March at the latest. If no pay-less notice is issued, £1,150,000 must be paid by 22 March. If a pay-less notice is issued stating £980,000 with a valid basis, the Client pays £980,000 by 22 March and the difference is re\n\n---\n\nSource: NEC4: Assessing compensation events part 2: Price\nURL: https://www.youtube.com/watch?v=_Ct_95rsPWc\nthat's the the dividing date probably uh and the contractor has taken 180 days to price. So maybe they haven't put their quotation in. Um I mean if they take more than three weeks under the contract the project manager has to assess it. Uh so uh it's one of the rules under 64.1. um if you don't get quotation within within within the time allowed course you can extend that uh within that three-week period but if that's not happened then you have an obligation as a project manager to assess it yourself um so NEC is all about keeping the momentum uh if you I think the only way you could get to 180 days uh is that if you get stuck in that cycle of uh submitting within three weeks and replying within two weeks and your reply being I instruct revised you could in theory stretch it out to 180 Do [...] um or disben of course and don't take 180 days to do a quote. No, don't do that. And don't forget your obligation to assess it. Um have a look at clause 64.1. Right. Uh we'll probably pick up on this in the next episode. Actually, the last bullet point on that is an interesting one. Uh withholding acceptance to a program for a reason stated in the contract. So finding a reason of the contract, not withhold withholding acceptance program gives you the the task of assessing compensation as project manager. So, uh, just be careful. Do you want to take this one, D? Okay. So, Alex has said, \"It can be very difficult to deem if the contractor's quote based on the effect of the defined cost is accurate and then even harder to make an assessment. Do you have any advice on getting a true form of\n\n---\n\nSource: When and why NEC project managers have to assess compensation events - Daniel CMS\nURL: https://www.danielcms.co.uk/publications/news-blog/74-when-and-why-nec-project-managers-have-to-assess-compensation-events\nThe project manager’s obligation to intervene in the process when it is no longer possible or appropriate for the contractor to carry out the assessment reinforces the approach. Reason 1: contractor misses submission deadline 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. [...] Email: davidhunter@danielcms.co.uk Home Publications Articles When and why NEC project managers have to assess compensation events ## When and why NEC project managers have to assess compensation events Core clause 6 of the NEC4 Engineering and Construction Contract (ECC) provides a process for assessing the change to the prices and completion date due to a compensation event. The process includes mechanisms designed to ensure that when either the project manager or contractor do not comply with the contract, the assessment is concluded. One such mechanism is the project manager’s obligation to undertake the assessment. This article explores the circumstances under which a project manager is required to perform their own assessment. Obligation to assess [...] Reason 4: contractor’s latest programme not accepted 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 pro\n\n---\n\nSource: NEC ECC - Timescales for Contractors CE quotations and Project Manager assessments - Compensation Events - ReachBack\nURL: https://reachback.builtintelligence.com/t/nec-ecc-timescales-for-contractors-ce-quotations-and-project-manager-assessments/5316\nAs you say the contract is clear that the Project Manager assesses if the Contractor has not submitted a quotation within the timescales. However, if they haven’t, there is no harm in the Contractor submitting a quote and they are certainly not restricted to do so. What the Project Manager chooses to do with that quotation is another question - although they would be pretty foolish not to look at it and consider it. I always say it is much easier for the PM to start with a Contractors quote and cross out what they don’t agree with, rather than starting from scratch from first principles. [...] Never an easy situation to keep on top of - but the alternative which is assess everything at the end which will be VERY time consuming and VERY subjective is far far worse for both Parties and no one has a clue on their relative liability. Thanks Glenn, we are working together to get through the back log and making progress, but as you’ll appreciate it takes time, which means newer CEs are timing out. So for clarity my reading of the above is that once the contractor’s time to issue the CEQ and the PMs time to issue the assessment has elapsed it will remain the remit of the PM to make an assessment?. That the PM can/should use any CEQs that come in after that time but it would still be defined as a PM assessment and dealt with as such? [...] Broadley yes, although I think the contract is silent on what happens if the Contractor does submit a quote late. Does the PM have to respond to that within two weeks, and if they don’t respond after a reminder would it be deemed accepted? Potentially yes, so as PM I would not run the risk and respond to the quote even if it is late to avoid such a loop. ### Related topics"
}