March 2010

Are you at Risk of a Cash flow problem?

Are you overrunning on any of your contracts?

Have you requested an extension of time?

As you will have seen from the construction press, lawyers are reporting that 10 percent of building contracts are experiencing liquidated damages disputes, this is up from 2 percent two years ago.

You are at a much greater risk of losing money than in the past.

Clients are issuing non completion certificates and imposing liquidated damages, often at many thousands of pound per week. 

What should you do?


Call Morrison Ross      01786 473118

We will swiftly establish your contractual position.  We have Forensic Planners who carry out Delay Analysis and are able to help raise your entitlement for Extension of Time.

We can also prepare entitlement documents for loss and expense or additional cost that you may have suffered by being delayed.

You need to keep ahead of the game, call Morrison Ross today.

Commissions that have recently been addressed by the company are delay and disruption to a city centre hotel, a development requiring detailed forensic planning analysis. Prosecution of an adjudication action raised by a specialist contractor, resulting in a substantial award for our client. Pursuit and payment of final certificates for several contractors being denied payment by their clients.

Several expert witness commissions ranging from fire damage through quality of construction to flood damage issues.

nec 3Do you know your documents?

  • Engineering and Construction Contract (Black Book)
  • Engineering and Construction Sub Contract (Purple Book)
  • Adjudicator’s Contract (Green Book)


Risk and NEC Contracts

  • Risk
  • Risk Allocation
  • Risk Management
  • Allocation – compensation events
  • Allocation – key dates
  • Allocation – clause 80 risks
  • Management – Risk register
  • Management – Early warning notice
  • Management – Risk reduction meeting
  • Failure to give early warning – Clause 63.5
  • Costs disallowed – Clause 11.2 (25)
  • Compensation event assessment – Clause 63.6

Clause 65.2

Clause 61.6

Beware of the following

  • Verbal communications – have no contractual relevance
  • early warning procedures
  • the programme is an essential management tool
  • time bar of 8 weeks for the notification of a compensation event
  • acceleration measures

Compensation Events – Can you deal with the following?



  • what should the project manager do when he is first told about a delay under ECC option “A”
  • Is the delay a compensation event?
  • If it is a compensation event how would it be assessed?
  • Should the Completion Date be extended and if so by much?


  • How should the quotation for the compensation event be assessed under Option C in terms of:-

(a)          changes to the prices and

(b)         changes to the Completion Date?


  • Under Option C what happens if the contractor notifies the Project Manager of a compensation event and 2 weeks later the Project Manager has still not replied?


(a)          What actions can the Contractor take?

(b)         How long has the Contractor got to provide the quotation?

 Need Advice

Contact – Morrison Ross Limited by e-mail at:


Ask for:       George Ross


                   Bob Broome


                   Paul Rooney


                   Graham Dunigan


                   Rod Jones