HIRE US

Valuation of Compensation Events and their Referral to Adjudication

Project Type

The project consisted of the design development/completion and construction of works to a new nuclear facility. The subcontract sum was £8.5m, and the contract terms and conditions were a modified NEC3 Option A Subcontract which included 16 Key Dates.

Description of Issues

The subcontract documents stated that the baseline design had been developed to a certain stage. This was disputed by the subcontractor and had caused the subcontractor to experience delay and incur additional cost.

Entitlements or Liabilities

The subcontractor was, via numerous CE’s, claiming extensions of time to all Key Dates and £445k in changes to the TotP, but the main contractor who was solely responsible for the issue refused to acknowledge the entitlement and rejected numerous CE’s on both entitlement and quantum grounds and repeatedly instructed re-quotes.

How did TREO help?

TREO re-assessed the CE’s and its delay assessment supported a full extension of time to all Key Dates of approximately three months and assessed the change in defined cost plus Fee at £875k.

The Outcome

After submitting TREO’s assessment of the CE’s, the Contractor again requested a re-quote, at which point TREO immediately issued an adjudication notice and the referral. The Adjudicator made an award in our Clients favour, awarding the full extension of time, compensation of £445k plus costs (which the parties had agreed would form part of the Adjudicator’s decision).

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