Civil Engineering Reference
In-Depth Information
which could increase the total of the Prices, delay Completion, delay meeting a Key
Date or impair the performance of the works in use (clause 16.1).
The Contractor may also give an early warning by notifying the Project Manager of
any other matter which could increase his total cost. he Project Manager enters early
warning matters in the Risk Register. In terms of clause 16.2, the Project Manager or
the Contractor may instruct the other to attend a risk reduction meeting.
Clause 16.3 describes the purpose of a risk reduction meeting as, for those who
attend, to co-operate in making and considering proposals for avoiding or reduc-
ing the effect of the registered risks, seeking solutions which will bring advantages
to those affected, deciding on the actions to be taken and who will take them, and
deciding what risks have been avoided or have passed and can be removed from the
Risk Register.
he Risk Register
In terms of clause 16.4, the Project Manager revises the Risk Register to record deci-
sions made at each risk reduction meeting and issues the revised Risk Register to the
Contractor. In the event that a decision needs a change to the Works Information, the
ProjectManagerinstructsthischange.
It is worth noting that the Risk Register is simply a management tool for the project,
allowing risks to be identified and, through the early warning procedure, managed.
The Risk Register does not allocate risk for the purpose of compensation events. This
meansthatevenifanitemisnotedastheEmployerhavingownershipoftheriskin
the Risk Register, that does not suffice for there to be a compensation event as defined
in clause 60.1(14) - an event which is an Employer's risk stated in the contract - if
thatriskthenmanifestsitself.heonlyexceptiontothatisiftheoutcomeoftherisk
reduction meeting is that a change to the Works Information is instructed. If it is
wishedtotrulypasstherisktotheEmployer,thewaytodothisistolistadditional
Employer's risks in the Contract Data Part One. That will bring them within the def-
inition of Employer's risks in clause 80.1. Where this is not done, clause 81.1 is clear
in stating that from the starting date until the Defects Certificate has been issued, the
risks which are not carried by the Employer are carried by the Contractor.
Acceleration
There is also provision within clause 36.1 for the Project Manager to instruct the
Contractor to submit a quotation for acceleration to achieve Completion before the
Completion Date. The quotation is to include proposed changes to the Prices and a
revised programme showing the earlier Completion Date and changed Key Dates.
Clause 36.2 requires the Contractor either to submit a quotation or to give reasons
for not doing so within the 'period for reply' which is defined in the Contract Data
Part One.
In terms of Options A, B, C and D, clause 36.3, when the Project Manager accepts
a quotation for an acceleration, he changes the Prices, Completion Date and the Key
