Employer risk event Definition

GLOSSARY

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What does Employer risk event mean?

An event, circumstance or cause which, under the contract, is at the risk or responsibility of the employer—if the event/circumstance transpires, then the contractor will be generally be entitled to additional time and money (depending on what the contract says).

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Construction Glossary—E

Construction Glossary—E A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Early neutral evaluation Early neutral evaluation is a form of alternative dispute resolution whereby the parties invite a neutral third party to give an opinion on the merits of the case or particular aspects of the case. The evaluator will generally be a lawyer or an expert in the field. See Practice Note: Early Neutral Evaluation (ENE). Early warning The early warning process is found most notably in the NEC3/NEC4 suite of contracts, but the concept exists in some other standard form contracts. It requires the parties to the contract to notify each other, as soon as either of them becomes aware of any matter that could increase the total cost, delay completion or impair the performance of the finished work, so that the parties can proactively deal with the issue. For more information on the process in the context of...

Concurrent delay

Concurrent delay This Practice Note considers the meaning and relevance of concurrent delay on construction projects, contractual terms dealing with concurrent delay and the contractor’s entitlement to an extension of time and/or loss and expense where there is concurrent delay. Concurrent delay describes the situation on a construction project which is suffering delay in which two or more independent events have occurred which, if either had occurred on its own, would have caused critical delay to the project. Typically, one of the events causing delay will be at the employer's risk (sometimes referred to as a ‘relevant event’), while the other will either be at the contractor's risk or will be a neutral event (ie it is at neither the contractor’s nor the employer’s risk, such as adverse weather). Such delays may occur at exactly the same time (although this is rare) or they may overlap to some degree. Applying the normal test of ‘but for’ causation, neither event can be said to have caused the delay. In...

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The prevention principle and concurrent delay

Construction analysis: Lucy Garrett of Keating Chambers considers the relationship between the prevention principle and concurrent delay.

Reasonable skill and care obligation in NEC contract (SSE v Hochtief)

Construction analysis: The Scottish court held that, under Option M of a NEC2 contract, the contractor was only liable for defects where it had failed to use reasonable skill and care to comply with the works information. However, under the terms of the contract it should have carried out the remedial works and sought payment after liability had been determined. The court also concluded that the cost of third party remedial works was reasonable, even though it had increased significantly.

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