An Early Warning Notice under NEC4 Clause 15 is not bureaucracy. It is the mechanism by which you preserve your compensation event entitlement. A contractor who identifies a risk that could increase the total of the Prices, delay Completion, or impair the performance of the works, and does not notify an EWN, gives the Project Manager a basis to assess any resulting compensation event on the assumption that the warning had been given - which almost always produces a lower assessment than the event actually cost.
When to Issue an Early Warning Notice
The obligation to issue an EWN arises as soon as the contractor becomes aware of a matter which could affect the contract. Not when the matter becomes a problem. Not when the contractor has decided how to respond to it. As soon as awareness of the risk exists. Common triggers on a fit-out project include:
What the Notice Must Contain
NEC4 does not prescribe a specific format for the Early Warning Notice, but it must be in writing (Clause 13.1) and must identify the matter of which early warning is being given. A well-drafted EWN should contain:
The Eight-Week Rule Under Clause 61.3
The compensation event notification requirement under Clause 61.3 is separate from the EWN obligation but equally important. A contractor who has not notified a compensation event within eight weeks of becoming aware of it loses the right to a change in the Prices or the Completion Date for that event, unless the PM should have notified the event but did not.
The EWN is the early signal. The CE notification is the formal claim. Both have time bars. Both need to be tracked on a project that is running under NEC4.
The NEC4 contract is designed to be managed proactively. The Early Warning Notice mechanism is not an optional extra for contractors who like paperwork - it is the foundation of the compensation event procedure. Issue EWNs early, issue them for every relevant risk, and keep the log current. The final account conversation is significantly easier when the record of what was notified and when is complete.
Written by a Senior PM with 18 years of UK fit-out experience. Content is for guidance only and does not constitute professional advice. Always verify against your specific contract and applicable legislation.