Understanding Risk within NEC3 Contracts
Why you should attend this workshop?
This half-day workshop considers both more traditional approaches to identifying and managing risk compared to the processes specifically identified within the NEC3 suite of contracts. It considers definition of risk and risk management before looking at the traditional risk registers that often get produced and reviewed generally across construction projects.
The Risk Register is a key aspect within the NEC3 suite of contracts and its use and understanding is instrumental in identifying and managing the risks associated with a project and the actions which need to be taken to avoid or reduce those risks. The session will consider the different ways that risk can be altered throughout the contract and the considerations that the Parties should make when allocating risk or pricing risk accordingly. It will reinforce the requirements of the early warning process and what should go into an NEC3 Risk Register, which is used to monitor and close out the risks and early warnings that have been raised on a project.
Attendees of this course will have a much clearer understanding of risk allocation throughout the contract and how it can be best managed from tender stage through to the conclusion of a project.
You will learn about:
' definition of risk management and what a traditional risk register is likely to include
' compensation events and how they proportion whose risk is what under the contract
' how main and secondary option choices alter the risk profile on a project
' Employer' risk within section 8 of the contract and within Contract Data
' Defined Costs and Disallowed Costs under the contract
' the specific requirements of the early warning process and resultant NEC3 Risk Register, and how it differs from the more traditional project risk registers that are used within the industry.
' how this Risk Register is updated throughout the life of a project and
' how risk can be dealt with differently for individual compensation events
This workshop is recommended for anyone who is involved in preparing or reviewing contract documents at tender stage, as well as any people involved in administering an ECC contract on a live project to understand what part the documents play in the administration of a project. This will include project managers, contract managers, quantity surveyors, clients, consultants, planners, contractors and their supply chain.