{
  "query": "NEC4 contract early warning vs compensation event notice frequency benchmarks",
  "claims": [
    {
      "claim": "There is no direct link between the frequency of early warning notices and compensation events, as one may occur without the other.",
      "verbatim_quote": "But remember there is no direct link between early warning notices and compensation events – an early warning notice might not lead to a compensation event, and a compensation event might occur without an early warning notice.",
      "source_url": "https://www.neccontract.com/news/nec-early-warning-notices-a-unique-risk-management-tool-of-mutual-benefit?srsltid=AfmBOoq8nPaataLj3rvWmAXZseYMiWCi9h0bE90JhkV885PYvPcYECvV",
      "relevance": "medium"
    },
    {
      "claim": "Early warnings are prospective notifications of potential effects, whereas compensation events are retrospective notifications of events that have already occurred.",
      "verbatim_quote": "An early warning is a prospective notification of a matter that could have an effect. A compensation event notification (under Clause 61) is a retrospective notification of an event that has occurred and falls within the Clause 60.1 list.",
      "source_url": "https://www.somaprojectcontrols.com/resources/guides/nec4-early-warnings-the-mechanism-most-teams-waste/",
      "relevance": "medium"
    },
    {
      "claim": "Failure to notify an early warning can lead to a compensation event being assessed at a lower value if the Project Manager believes mitigation opportunities were lost.",
      "verbatim_quote": "If a subsequent compensation event quotation is issued at say £60k, where the Project Manager considers that had the early warning been notified, they could have mitigated half of the resultant quote, they can then assess the quotation at half the cost, i.e. £30k.",
      "source_url": "https://www.ceca.co.uk/wp-content/uploads/2022/09/CECA-NEC4-Bulletin-No.5-Early-Warnings-and-Liability-for-Not-Notifying-May-2021.pdf",
      "relevance": "medium"
    }
  ],
  "market_context": "- [MEDIUM] There is no direct link between the frequency of early warning notices and compensation events, as one may occur without the other. (source: https://www.neccontract.com/news/nec-early-warning-notices-a-unique-risk-management-tool-of-mutual-benefit?srsltid=AfmBOoq8nPaataLj3rvWmAXZseYMiWCi9h0bE90JhkV885PYvPcYECvV)\n- [MEDIUM] Early warnings are prospective notifications of potential effects, whereas compensation events are retrospective notifications of events that have already occurred. (source: https://www.somaprojectcontrols.com/resources/guides/nec4-early-warnings-the-mechanism-most-teams-waste/)\n- [MEDIUM] Failure to notify an early warning can lead to a compensation event being assessed at a lower value if the Project Manager believes mitigation opportunities were lost. (source: https://www.ceca.co.uk/wp-content/uploads/2022/09/CECA-NEC4-Bulletin-No.5-Early-Warnings-and-Liability-for-Not-Notifying-May-2021.pdf)"
}