{
  "query": "NEC4 contract rejection of quotation for lack of early warning clause 61.5 63.7",
  "claims": [
    {
      "claim": "If a contractor fails to provide an early warning for an event that becomes a compensation event, the Project Manager must state this failure when instructing the quotation under clause 61.5.",
      "verbatim_quote": "If the contractor has not given early warning of an event that subsequently becomes a compensation event, the project manager says so when instructing a quotation (clause 61.5).",
      "source_url": "https://www.neccontract.com/news/do-what-nec4-ecc-says-or-face-the-%E2%80%98enforcement-clauses%E2%80%99?srsltid=AfmBOooRNGM-8tr-wEszWWuPNP8CrSBaG9r2Bw1ikX3GBFjqSEtSDo40",
      "relevance": "high"
    },
    {
      "claim": "Under clause 63.7, a compensation event is assessed as if the contractor had given the early warning, which typically results in a lower valuation.",
      "verbatim_quote": "the Project Manager can then assess the subsequent compensation event as though the Contractor had given the early warning, which might mean the assessment has a lower value (refer to clause 63.7).",
      "source_url": "https://coniston-associates.co.uk/take-notice-a-brief-guide-to-nec-contract-notices/",
      "relevance": "high"
    },
    {
      "claim": "The sanction for failing to give an early warning is not automatic; it only applies if the Project Manager explicitly includes the statement in the instruction to submit quotations.",
      "verbatim_quote": "Clause 63.7 is not automatic. It requires the Project Manager to state, in the instruction to submit quotations, that the Contractor did not give an early warning of the event which an experienced contractor could have given. If the PM does not include this statement in the instruction, the sanction does not apply.",
      "source_url": "https://www.gatherinsights.com/en/nec4/early-warnings",
      "relevance": "high"
    },
    {
      "claim": "The assessment under clause 63.7 considers what mitigation could have been achieved had the warning been given, and reduces the compensation event entitlement accordingly.",
      "verbatim_quote": "When invoked, the compensation event is assessed as if the Contractor had given early warning at the appropriate time. The assessment considers what mitigation could have been achieved, and the CE entitlement is reduced accordingly.",
      "source_url": "https://www.gatherinsights.com/en/nec4/early-warnings",
      "relevance": "high"
    },
    {
      "claim": "In cost-based contracts (Options C, D, E, or F), costs incurred due to a lack of early warning are classified as disallowed costs.",
      "verbatim_quote": "If the main option is for a cost-based contract (Option C, D, E or F), then any costs incurred because no early warning was given are also disallowed costs (clause 1.2(26/27)).",
      "source_url": "https://www.neccontract.com/news/do-what-nec4-ecc-says-or-face-the-%E2%80%98enforcement-clauses%E2%80%99?srsltid=AfmBOooRNGM-8tr-wEszWWuPNP8CrSBaG9r2Bw1ikX3GBFjqSEtSDo40",
      "relevance": "medium"
    }
  ],
  "market_context": "- [HIGH] If a contractor fails to provide an early warning for an event that becomes a compensation event, the Project Manager must state this failure when instructing the quotation under clause 61.5. (source: https://www.neccontract.com/news/do-what-nec4-ecc-says-or-face-the-%E2%80%98enforcement-clauses%E2%80%99?srsltid=AfmBOooRNGM-8tr-wEszWWuPNP8CrSBaG9r2Bw1ikX3GBFjqSEtSDo40)\n- [HIGH] Under clause 63.7, a compensation event is assessed as if the contractor had given the early warning, which typically results in a lower valuation. (source: https://coniston-associates.co.uk/take-notice-a-brief-guide-to-nec-contract-notices/)\n- [HIGH] The sanction for failing to give an early warning is not automatic; it only applies if the Project Manager explicitly includes the statement in the instruction to submit quotations. (source: https://www.gatherinsights.com/en/nec4/early-warnings)\n- [HIGH] The assessment under clause 63.7 considers what mitigation could have been achieved had the warning been given, and reduces the compensation event entitlement accordingly. (source: https://www.gatherinsights.com/en/nec4/early-warnings)\n- [MEDIUM] In cost-based contracts (Options C, D, E, or F), costs incurred due to a lack of early warning are classified as disallowed costs. (source: https://www.neccontract.com/news/do-what-nec4-ecc-says-or-face-the-%E2%80%98enforcement-clauses%E2%80%99?srsltid=AfmBOooRNGM-8tr-wEszWWuPNP8CrSBaG9r2Bw1ikX3GBFjqSEtSDo40)"
}