What clause 15 asks for
NEC4's early warning process sits in clause 15 of the Engineering and Construction Contract (it was clause 16 in NEC3). Either the Project Manager or the Contractor gives an early warning as soon as they become aware of a matter that could increase the total of the Prices, delay Completion or meeting a Key Date, or impair the performance of the works in use. NEC's own guidance is plain: if in doubt, notify.
An early warning is not a claim and does not decide who pays. It puts the matter on the table early enough to do something about it.
The register and the meetings
| Step | What NEC4 asks | Timing |
|---|---|---|
| First Early Warning Register | Prepared by the Project Manager | Within one week of the starting date |
| First early warning meeting | The Contractor is instructed to attend | Within two weeks of the starting date |
| Later meetings | Held at the early warning interval in the Contract Data, or called sooner by either party | As needed |
| Revised register | The Project Manager records the decisions and issues it to the Contractor | Within one week of each meeting |
The NEC renamed the NEC3 "risk register" and "risk reduction meeting" to the Early Warning Register and early warning meeting, partly to make clear the register is not the project's general risk register.
What the meeting decides
The meeting considers how each matter can be avoided or its effects reduced, looks for answers that help everyone affected, and decides the actions and who takes them. Others, such as subcontractors or designers, can be asked to attend where they can help. The register then records each matter and the actions agreed against it.
Recording it so the trail holds up
The register is the working document; minutes of the meeting support it. A useful record shows:
- the date each matter was first raised, and by whom;
- the options discussed, not only the one chosen;
- each action, its owner and its date;
- which matters closed, when and why.
Dates matter most. If the matter later becomes a compensation event, when it was first known can affect the assessment, so the record of the meeting where it was first raised is worth keeping exactly. Recording the meeting with everyone's knowledge, and keeping minutes that link back to the moment each matter was raised, gives that date without argument.
Questions
Is an early warning the same as a compensation event notice?
No. An early warning flags a matter that could affect cost, time or performance so it can be managed. A compensation event is a separate contractual process about whether the Prices and Completion Date change. NEC4 says an early warning is not needed for a matter that has already been notified as a compensation event.
Who keeps the Early Warning Register?
The Project Manager. They prepare the first register, enter each early warning, and issue the revised register after each early warning meeting.
Can the Contractor call an early warning meeting?
Yes. Either the Project Manager or the Contractor can instruct the other to attend an early warning meeting when something cannot wait for the next scheduled one.
What if a party does not give an early warning it should have?
The sanction falls mainly on the Contractor. If the Project Manager considers an early warning should have been given and was not, a later compensation event can be assessed as if it had been given (clauses 61.5 and 63.7), and under the cost-based main options C to F a cost caused by failing to give a required early warning can be disallowed. Take advice on a particular case.
Sources
- NEC, NEC101 early warning webinar (PDF): clause 15.1 to 15.3, the register and the meetings, from the publisher of the NEC contracts
- NEC, How NEC4 ECC guarantees a good performance for clients: early warning meetings and the register the project manager keeps
- CECA, NEC4 Bulletin No. 5: Early warnings and liability for not notifying (PDF): the changes from NEC3, timings, and the consequences of not notifying
Our summaries of these documents are not their wording: read the source before relying on it. This guide is general information, not legal advice for a particular case. Note Metric and AI Metric Ltd are not affiliated with or endorsed by any body named here.