Course overview
NEC4 ECC – Commercial Management is for commercial teams preparing and assessing cost, payment and compensation event information under the Engineering and Construction Contract. It connects the cost rules with the records, forecasts and programme information needed to apply them.
Participants examine the classification and evidence for Defined Cost, the treatment of Disallowed Cost and the preparation of reasoned compensation event quotations. Payment under Options C, D and E is considered separately from target adjustments and the Contractor’s share under C and D.
Worked examples involve checking a cost return, explaining a payment forecast and testing the basis of a quotation. The emphasis is on a calculation another reviewer can follow, with queries and outstanding evidence clearly identified.
What the course covers
Topics include:
Early warning and commercial risk
- The commercial philosophy of NEC4
- Using early warning to manage commercial issues
- Risk management and how the Parties work together
- Cost forecasts and commercial reporting
Cost and compensation events
- Defined Cost and supporting cost information
- Payment assessments and forecasts under Options C, D and E
- Separating payment, target adjustments and Contractor’s share under C and D
- Keeping records that can be checked and audited
- Using the programme to assess time impacts
- Compensation event management in practice
- Quotations and assessment principles
Managing the contract
- How the Project Manager and Contractor work together
- Authority and responsibility for commercial decisions
- Common problems in applying the contract and resulting disputes
- Applying the contract to day-to-day project decisions
Course delivery
Training is delivered face-to-face for your organisation over one day.
Entry level establishes the commercial procedures and cost terminology. Experienced-level sessions spend more time on disputed cost items, forecasts and the assessment of quotations. The level and selection of exercises are agreed within the one-day course.
We agree the level and emphasis with you to suit your team’s experience and project requirements, including any contract amendments.
Who it’s for
The course is for commercial teams working under NEC4 ECC, including:
- Contract Administrators and Commercial Managers
- Quantity Surveyors
- Project Controls Personnel
- Client-side Commercial Teams
- Commercial Consultants and Advisors
