NEC contracts—interpreting the list of compensation events (clause 60)

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

  • NEC contracts—interpreting the list of compensation events (clause 60)
  • Compensation events in clause 60
  • Clause 60.1(1)—changes to the Scope
  • Clause 60.1(2)—restriction of access
  • Clause 60.1(3)—non-provision of documents/information by the Client
  • Clause 60.1(4)—stop notice
  • Clause 60.1(5)—other work on site
  • Clause 60.1(6)—delay in replying
  • Clause 60.1(7)—antiquities
  • Clause 60.1(8)—change of decision
  • More...

NEC contracts—interpreting the list of compensation events (clause 60)

This Practice Note examines and provides commentary on the list of compensation events contained in clause 60 of the NEC3 and NEC4 engineering and construction contracts (NEC3 ECC and NEC4 ECC). It looks at how the different compensation events may be used in practice, provides references to case law on the topics and suggests ways in which the compensation event clauses may be amended by the parties. This Practice Note supplements Practice Note: NEC contracts—compensation event regime which sets out the process for claiming compensation events under the NEC3 ECC and NEC4 ECC.

Note that the NEC3 suite refers to the ‘Employer’ but, in the NEC4 suite, the employer is re-named the ‘Client’. For ease of reference, this Practice Note uses ‘Client’ in relation to both contracts. For a glossary of NEC terms, see Practice Note: NEC contracts—glossary.

Compensation events in clause 60

The list of compensation events in clause 60 is the same in both the NEC3 and NEC4 versions of the ECC with the exceptions of 60.1(20) and 60.1(21) which were added in the NEC4 ECC. Unlike the JCT forms of contract, the NEC4 ECC specifies a time period in which the Contractor must give notice of a compensation event (clause 61.3). It provides that compensation events must be notified within eight weeks of the Contractor becoming

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