Laryea, S (2016) Compensation events in NEC3 contracts: Case studies from South Africa. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 169(2), pp. 49-64. ISSN 17514304
Abstract
Compensation events can have significant consequences on project objectives. However, not much systematic research has been done on the occurrence of NEC compensation event in projects for the purpose of controlling and minimising their impact. The specific objectives of this study are to conduct a systematic review of literature on NEC compensation events and to conduct a systematic analysis of compensation events in four NEC-procured projects in South Africa to examine their extent, effects and sources. Publications mentioning 'compensation events' were reviewed based on papers by academic researchers, articles by practitioners in the NEC Users' Group Newsletter and papers by construction lawyers published by the UK Society of Construction Law. The 84 publications demonstrate 15 operational aspects of compensation events. Thereafter the data on compensation events in four NEC-procured building projects in South Africa (the largest being £9 million) are analysed based on final accounts. The findings demonstrate a significant number of compensation events (165 altogether) with most arising from incomplete or late work information. Employers wishing to control and minimise compensation events on projects should be more decisive about their requirements and implement professional service agreements that incentivise members of the professional team to perform their role timelier and efficiently.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contracts & law; procurement; project management |
| Index terms: | project management, professional service, case study, agreements, practitioner, lawyer, construction law, compensation, publication, South Africa, society, final account, systematic literature review |
| Subjects: | Geography, payment, dispute resolution, practitioner, organization, construction law, communities and social development, research dissemination and communication, project management theory and practice, research evaluation and metrics, contract formation, profession, data collection methods |
| Topics: | Roles and Professions, Legal Issues, Organizational Design, Research Practice, Project Management, Geographical Context, Stakeholder Management, Contract Administration, Information Management |
| Descriptive scope: | 3 PCE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here