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NEC4: Defined Cost and Compensation Events

Author(s): Patrick Waterhouse

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Stock level: In stock
Publication date: 08 November 2021
Digital version: Buy this eBook
NEC4: Defined Cost and Compensation Events explains how to manage compensation events, and the wider role that Defined Cost has within the NEC contract. The book shows how effective management of compensation events is central to the success of each contract, and the important role of Defined Cost both in compensation events and also routine paymen

NEC4: Defined Cost and Compensation Events explains how to manage compensation events, and the wider role that Defined Cost has within the NEC contract. The book shows how effective management of compensation events is central to the success of each contract, and the important role of Defined Cost both in compensation events and also routine payment assessments.   

Focusing primarily on Defined Cost in the NEC4 Engineering and Construction Contract (ECC), the book provides stand-alone guidance for each of the six main options of the ECC, and also includes coverage of the Alliance Contract, DBO Contract, Professional Service Contracts, and the Term Service and Facilities Management Contracts. The assessment of time in compensation events, as it impacts upon the financial assessment is explained.  

NEC4: Defined Cost and Compensation Events is an ideal companion for all those working in construction contracts, from the initial preparation of the contract, to the procurement, award, execution and management of disputes. It is essential reading for engineers, project managers, quantity surveyors, architects, lawyers and claims consultants. 

Book Review

Patrick Waterhouse’s new book is a welcome edition to my shelf in the office dedicated to all things NEC. […] The text is enlivened by real life examples of issues related to the practical administration of the compensation events. […] This book demystifies both the use of the schedule of cost components and the shorter schedule of cost components in establishing the defined cost. The book is all about practical application of the ECC, it does not get bogged down in legal theory or case law and will be of great use to both practitioners like myself and students alike.

Sean Smylie FRICS, FCIArb, MSc, LLB (Hons), Dip Adjj, Director of Quantex Consulting Ltd , UK and Ireland.


Patrick Waterhouse's book provides valuable insight into the compensation event process and how to use and assess Defined Cost. He takes the reader through the steps to be followed in dealing with compensation events, including describing some pitfalls and how to avoid them. The book helpfully details how Defined Cost is used in all Options of the Engineering and Construction Contract, and summarises the approaches on the other NEC4 contracts.. This is a must read book for those preparing and operating NEC4 contracts.

Peter Higgins, Director at pdConsult, UK

Patrick Waterhouse CEng FICE FCIArb FCInstCES is a construction adjudicator, accredited mediator and contract consultant.  He is a recognised expert in the NEC forms of contract and has adjudicated numerous disputes under NEC contracts.  Patrick delivers training in all forms of contract and is an examiner for the ICE’s law & contract management examinations and for its adjudicator qualification examination.  
Format: Paperback
ISBN: 9780727765604
Number of pages: 256
Product code: 9780727765604
Page size: 243 x 170mm
Publication status: Published
Publisher: ICE Publishing


Preface

About the author

List of abbreviations

01. Introduction

02. What is the role of Defined Cost in NEC4 contracts?

03. What is a compensation event?

04. Compensation events 60.1(1) – 60.1(10)

05. Compensation events 60.1(11) – 60.1(21)

06. Compensation events in the main and secondary Options

07. Notifying compensation events, producing quotations and proposed instructions

08. Assessing and implementing compensation events

09. Time assessments of compensation events

10. What is Defined Cost?

11. Defined Cost and assessing compensation events in main Option A and Option B Contracts and the Short Schedule of Cost Components

12. Defined Cost in Main Option C, D and E contracts; Disallowed Cost and the Schedule of Cost Components

13. Main Option C, D and E contracts: assessment of Price for Work Done to Date and assessment of compensation events

14. Option F contracts: Defined Cost; Disallowed Cost; assessment of Price for Work Done to Date, and assessment of compensation events

15. Final assessments

16. Other NEC contracts

17. The effect of Z Clauses

18. Disputes concerning Defined Cost and compensation events

19. Defined Cost in termination

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