Construction Law guide to NEC3 (Part 2) (2017) 28 3 Cons.Law 14 [Archived]
Construction Law guide to NEC3 (Part 2) (2017) 28 3 Cons.Law 14 [Archived]

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Construction Law guide to NEC3 (Part 2) (2017) 28 3 Cons.Law 14 [Archived]
  • Clause 6: Compensation events
  • Clause 7: Title
  • Clause 8: Risks and insurance
  • Clause 9: Termination
  • Dispute resolution
  • Secondary option clauses
  • Contract data

ARCHIVED: This Practice Note has been archived and is not maintained.

This article appears as originally published in Construction Law on 1 April 2017 and is not maintained.

This second article on the NEC Engineering and Construction Contract (ECC) in our CL Guide series, by Jon Gaskell, a Legal Director at DLA Piper, focusses on key aspects of core cll 6 to 9, together with the dispute resolution options, secondary option clauses and contract data.

See also: Construction Law guide to NEC3 (2017) 28 2 Cons.Law 14.

Clause 6: Compensation events

There are some 19 separate events listed in total, some of which may be characterised as acts of prevention by the employer, or those for whom he is responsible (for example, where the employer does not provide something which he is obliged to provide by the date for providing it shown on the accepted programme) and others which are more properly characterised as 'neutral', being outside the control of the parties (for example, unforeseen weather).

Clause 61: notifying compensation events

This provision sets out the requirements for either the project manager or the contractor bringing compensation events to the attention of the other. The project manager is to notify the contractor of compensation events which arise from the project manager or the supervisor giving an instruction, issuing a certificate, changing an earlier decision or correcting an assumption. The contractor is to notify the project manager of an event which has happened or which he expects to happen as a compensation event.

An important requirement is that if the contractor does not notify a compensation event within eight weeks of becoming aware of