Friday 25 April 2014

Don't restrict the use of early warnings.....

I've recently read an opinion that the 4 bulleted instances stated in clause 16.1 of the ECC are the only occasions the Project Manager/Contractor could notify an early warning. I don't think the contract says that at all.

For a start, the Contractor may notify any other matter which could increase his total cost (see clause 16.1), but even this is too narrow in its thinking. Regard the 4 bullets as the minimum instances an early warning must be given (this is in fact an obligation on PM/Contractor) therefore there is no maximum scenario in practice. The ECC does not say 'in these instances only' or 'do not otherwise notify' or anything like that. So why not think about notifying opportunities through the early warning process as well as the bad things..."Here's something we may be able to exploit, let's have a risk reduction meeting to discuss...."

We should use the early warning process for good and bad matters; we should of course notify the matters we must notify but make sound judgement on those we therefore may wish to notify if we believe such are worth of our time.

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