Clause 60.1(10) makes it a compensation event when the Supervisor instructs a search for a Defect and none is found. The one exception is where the search was needed only because the Contractor gave too little notice of work that would hide a required test or inspection.
The balance is fair. The Supervisor can open up work whenever it has reason to doubt it, and if it's wrong, the Client pays. If a Defect is found, the Contractor corrects it at its own cost, so there's no event. The entry number is the same in NEC3 and NEC4, though the search power moved from 42.1 in NEC3 to 43.1 in NEC4.
What triggers it
- An instruction to search, with reasons, given by the Supervisor before the defects date.
- The search is carried out. It can involve uncovering and re-covering, dismantling and re-erecting, providing what tests need, and doing tests that the Scope doesn't otherwise ask for.
- No Defect is found.
- The exception doesn't apply. See below.
The notice exception
Clause 41.3 requires the Contractor to warn in good time so a required test or inspection can be arranged and done before work covers it. If the Contractor pours over something without that notice, and the only reason for opening it up is to see what should have been seen, then a clean result gets it nothing.
| Situation | Event? |
|---|---|
| Inspection required, notice given, Supervisor attended and passed it, later search finds nothing | Yes |
| Inspection required, no notice given, work covered, search needed only for that reason, nothing found | No |
| Inspection required, no notice given, but the Supervisor searches because of cracking seen later, nothing found | Likely yes, as notice isn't the only reason. Expect a debate. |
| No inspection required, Supervisor suspicious, nothing found | Yes |
The word "only" matters. If that's the sole reason, the exception applies, and if there's a second real reason, the Contractor has an argument that it doesn't. That's why the reasons given in the instruction (43.1) deserve to be read closely.
How it is usually evidenced
- The Supervisor's instruction and stated reasons.
- The record of what was uncovered or tested, with photos, test certificates and a note signed by both sides at the time.
- Records of notices the Contractor gave under 41.3.
- Labour, plant and materials used for opening up and reinstating, plus any delay to following trades.
Agree in advance what would count as a Defect, so that a marginal result doesn't turn into another argument. A Defect is measured against the Scope and applicable law, not against the Supervisor's preference.
Worked example
A fictional retaining wall for a railway station car park on Option A, with illustrative figures. Cover meter readings on one bay are lower than expected, and the Supervisor instructs the Contractor to break out two areas and expose the reinforcement. The wall has been inspected with notice given. The breakouts show that the reinforcement and cover meet the specification; the readings were caused by the instrument.
| Item | Defined Cost |
|---|---|
| Access scaffold, breakout and testing | £4,200 |
| Repair mortar and concrete reinstatement to specification | £2,100 |
| Backfill gang delayed by three days | £3,300 |
| Subtotal | £9,600 |
| Fee at an illustrative 12% | £1,152 |
| Change to the Prices | £10,752 |
The backfill is on a path with four days of float, so planned Completion doesn't move and the Completion Date stays as it is. Had the search found low cover, the Contractor would have corrected the Defect at its own cost, and clause 41.6 would come into play if a test had to be repeated.
How it is assessed
The event follows an instruction, so the Project Manager should notify it under clause 61.1. But in practice the Project Manager doesn't know the outcome until the search ends, so it's often the Contractor that raises it. Don't let it drift: the instruction isn't a compensation event until no Defect has been found, and the result is the date to work from. The delay and cost then follow the normal rules.
What people get wrong
- Refusing to search. The Contractor doesn't get to wait for the argument to be settled. Carry out the instruction, record it and deal with the money later.
- Using it for tests the Scope already requires. A planned test that passes isn't a search. Unnecessary delay from such a test is 60.1(11).
- Forgetting the reinstatement and knock-on cost. These are often larger than the search.
- Treating a partial result as clean. If a search of ten bays finds a Defect in one, "no Defect is found" isn't obviously met. Agree the extent of each search in advance, and record whether extra bays were a separate instruction.
- Skipping 41.3 notices. Without them the Contractor has handed the Project Manager the exception. Keep them in a log. Read more in tests and inspections.
Related guides
- NEC Compensation Events: The Complete Guide
- Compensation Event: Test or Inspection Causing Delay
- Compensation Event: Physical Conditions
- Compensation Event: Weather
- Compensation Event: A Changed Decision
- Compensation Event: Withholding Acceptance for Other Reasons
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