An early warning notice (EWN) is a formal communication used on construction projects to identify potential issues, risks or changes that may affect the project’s scope, cost or programme. Its purpose is to promote proactive problem solving and collaboration between the project stakeholders, including the client, contractor and quantity surveyor, by highlighting potential challenges before they escalate into significant problems.
From a quantity surveying point of view, an early warning notice may address issues such as:
- Design changes: modifications to the design or specification that may affect the project’s cost or timeline.
- Resource constraints: shortages of, or delays in the availability of, materials, labour or equipment.
- Compliance issues: potential non-compliance with building regulations, other legislation or contract requirements.
- Budget overruns: possible cost overruns that may require adjustments to the project scope or budget.
- Programme delays: factors that may affect the programme, such as adverse weather or unforeseen site conditions.
When an EWN is issued, the parties should work together to assess the potential impact of the issue, evaluate possible solutions and put appropriate measures in place to mitigate the risk. Early warning notices support effective communication, encourage a proactive approach to risk management and ultimately contribute to smoother project delivery.
Early warning is a contractual mechanism under the NEC suite of contracts. Under NEC4 both the Project Manager and the Contractor must give an early warning as soon as they become aware of a matter that could, for example, increase the total of the Prices or delay Completion, and the matter is recorded in the Early Warning Register. If the Contractor fails to give an early warning that it should have given, a later compensation event may be assessed as if the warning had been given.
