NEC Compensation Event Account

May 10, 2023 | MBM Consulting

PROJECT CASE STUDY
CLIENT: Trade Contractor (> £1B worldwide turnover)
PROJECT: High Speed 1
VALUE: Approx £72.5M

SPECIFIC SERVICES:
Preparation of NEC compensation events including analysis of critical delays to demonstrate
change to the Completion Date and evaluation of Actual Cost.

PARTICULARS:
Our client required support preparing compensation events to a standard necessary for adjudication purposes should such be necessary. MBM analysed the various events that had affected progress and identified a true list of compensation events that complied with clause 60. MBM established the relevant Accepted Programmes, updated for progress and impacted the specific compensation event to establish its effect on completion. MBM established the financial consequences of the direct works as well as the indirect costs, such as time related costs, disruption costs, presented in the form prescribed by the NEC and defined as part of the Actual Cost for which our Client was entitled to compensation.

BENEFITS:
MBM provided a one stop shop whereby they were the single point of responsibility for the Commercial Director. This allowed existing commercial staff to concentrate on their specific duties. Our Client therefore had confidence that his case was being presented in accordance with the contract and in a robust yet persuasive manner.

VALUE ADDED:
Protection from delay damages: £7.25M
Actual Cost of Compensation Events: £15M
Approximate fee cost: £200k

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