NEC4 Short Form Compensation Events (CE)

The purpose of this article is to explore the Compensation Events (CE) short form module, including the navigation of the register and the creation and implementation of CEs.

The below article is based upon the NEC4_ECSC and NEC4_PSSC contract types and the terminology reflects this.

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Video content is available below.

Compensation Event Register

All CEs within a contract are stored within this register.

To access the CE register, navigate to the left-hand expandable menu and select Registers, followed by Compensation Events:

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You will then be presented with the CE register:

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The different states of CEs within the register are listed below;

DRAFT: CE which is currently in a draft state, meaning it has not yet been communicated (these populate above all communicated events and will only be visible to the Party that created them)

Struck through: A communicated CE which appears grey and struck through means it has been marked as CE notified incorrectly
Black CE: CE which is outstanding (awaiting action from the opposing Party or yourself)
Blue CE: indicates that this CE has been implemented

Void: CE which has been marked as void (these will appear at the bottom of the register, below all communicated events)


To filter the register, select the cog symbol at the top. You will then be presented with several options to narrow your search:

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All communicated events are visible to both parties with the most recent appearing at the top of the register.

Additionally, if the figure in the price column appears amber, this indicates an estimated price for the CE, provided by the Client and thus is only ever visible to the Client's Party.

A totals bar is located at the bottom of the register which displays cumulative amounts for the different quote stages. The total in amber is the estimated cumulative amount which is only visible to the Client's Party:

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Creating a CE as the Client

Navigate to the left-hand expandable menu and select Create New, followed by Compensation Event:

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You will then be displayed with the below draft edit form. The fields highlighted in red are required to be filled out in order to communicate the event:

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Once the relevant details have been entered, please select Send / Progress in the bottom right-hand corner of the edit form in order to communicate this. The Contractor will then receive a reminder in order to submit their Quotation:
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Creating a CE as the Contractor

Navigate to the left-hand expandable menu and select Create New, followed by Compensation Event:

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You will then be displayed with the draft CE edit form. The below highlighted fields are required to be filled out in order to access the next tab:

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Once the information has been entered, select Next Tab in the bottom right-hand corner of the edit form. This will take you to the Quotation tab. The highlighted field are required to be filled out in order to communicate the event:

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Within this tab, the Contractor can also enter any effect on Contract Dates and key/sectional dates.

Once all of the relevant details have been entered, select Send / Progress in order to communicate the event.

A reminder will then be generated within the Client's reminders page to prompt them to give their decision:

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Contractor submitting a Quotation for a CE

Select the reminder in the reminders page to enter the CE:

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You will then be displayed with the edit form whereby a quotation can be submitted.

Note

Within Short Form contracts, only one Quotation can be submitted against the event. 

The fields highlighted in red are required to be filled out in order for the quote to be submitted:


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Within the edit form, the Contractor can also enter any effects on Contract Dates and key/sectional dates.

Once the quote has been submitted, a reminder will be generated for the Client to respond:

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Client replying to a Quotation

Replying to a Quotation on a CE communicated by the Client:

Select the event from the reminders page to access the quote submitted by the Contractor:

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You will then be displayed with the edit form. Navigate to the Reply / Assessment tab:

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- Accept the Contractor's quotation - selecting this will accept the quotation and the CE will be closed. This will be reflected by the event being highlighted blue in the register.

- Client's own assessment - should the Client not want to accept the quotation provided by the Contractor, selecting this will allow them to add their own assessment. Once assessed, the CE will be closed and highlighted blue in the register.


Replying to a Quotation on a CE communicated by the Contractor:

Select the event from the reminders page:

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Within the event, navigate to the Reply / Assessment tab:

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CE notified correctly:

- accept the Contractor's quotation - selecting this will accept the CE and the quotation and the event will be closed and highlighted blue in the register

- Client's own assessment - if the Client does not want to accept the quotation, selecting this will accept the CE, and will allow the Client to add their own assessment. Once assessed, the CE will be closed and highlighted blue in the register


Alternatively, the Client can select CE notified incorrectly because this event... followed by selecting the applicable options highlighted above.

Video Tutorial

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