If you are employed under an NEC contract do you need to consider giving an Early Warning Notice?

Are you a party to the NEC Contract? Are you wondering what steps you might need to take to protect yourself in the current climate? If you anticipate disruption, and let’s face it, in the current climate most will, subject to any amending clauses, in respect of early warnings, the majority of the standard form NEC contracts set out.

1. That an early warning notice is required if either party anticipates an increase in the total Prices, interference with the timing of the service or impairment of the effectiveness of the service
2. The early warning will then be placed on the Early Warning Register
3. The parties are to co-operate in avoiding and reducing the matter subject to the early warning
4. Early warning meetings may be convened to endeavour to reduce the risk
5. The Early Warning Register will be updated after any meeting

All parties should therefore examine all NEC contracts without delay as notice is required “as soon as either party is aware” and therefore could constitute a breach of contract or a waiver of rights if notification is delayed.

Whether these will ultimately constitute a Compensation Event falls outside the scope of this article.

This article has been produced for general information purposes and further advice should be sought from a professional advisor. Our team can assist in reviewing contracts and advising further should you require.