The approach to assessment of compensation events under the NEC form of contract remains one of the most commercially significant issues in project delivery.
While the NEC framework is founded on the principle of prospective assessment, disputes frequently arise when actual costs, delays and project outcomes are later known, prompting parties to question whether entitlement should be determined by forecasts made at the time or by what actually occurred in practice.
Contractors, project managers and employers are often required to grapple with difficult questions: How should uncertain future risks be valued? What role should the Accepted Programme play? Can actual costs and delays be used to challenge an earlier assessment? And what happens when forecasts prove dramatically wrong?
Join us for this webinar where we will examine both the contractual framework and the practical realities of compensation event assessment under NEC. Drawing on recent case law, project experience and common scenarios, the session will explore how the prospective assessment mechanism is intended to operate, where it is challenged in practice, and what lessons can be learned.
During this webinar, we will cover:
- The NEC approach to prospective assessments
- The role of forecasts, assumptions and risk allowances in pricing compensation events and assessing delay
- When actual costs and outcomes become relevant, and when they do not
- Key lessons from recent court decisions and dispute determinations
- Practical strategies for preparing compensation event assessments.
We have applied for Hong Kong Law Society CPD points for the session.
