Plain English Explanation
Under NEC, the contract sets specific time periods for the PM and Supervisor to respond to communications — typically two weeks unless a different period is stated in Contract Data. If the PM or Supervisor fails to reply within that period (for example, to an Early Warning, a request for an instruction, or a submission), this triggers a compensation event.
This CE reinforces one of NEC's core principles: timely communication and decision-making. If either party causes delay through inaction, the contract provides a remedy. The CE applies to things like: approval of designs or materials, decisions on Defects, responses to quotations, and acceptance of programmes.
In practice, this CE is frequently available but rarely formally notified — contractors often absorb the delay and move on. Tracking response times carefully can unlock legitimate entitlements.
Key Takeaway
Log every submission with its submission date and the contractual reply deadline — a systematic log turns an overlooked CE into a straightforward entitlement.
What This Means for Subcontractors
Under a subcontract, the main contractor takes on the PM role. If the main contractor is slow to respond to submittals, design queries, or requests for approval, this CE may be available. Keep a log of all submissions with submission dates and required response dates. Chase formally rather than informally — an email log is your evidence.
Common Risks & Disputes
- 1Not tracking submission and response dates systematically, making it hard to demonstrate a breach
- 2The PM arguing they did respond, or that the communication was incomplete so the period did not start
- 3Informal responses (verbal or email) being used to argue that a substantive reply was given
- 4Not being aware of what the contractual reply period is in your specific contract
- 5Accepting late responses without formally notifying a CE, which may bar your entitlement
Sources
Related Clauses
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