These compensation event examples follow common situations through NEC4 ECC, showing which sub-clause applies, who notifies and how the result is worked out. The projects and figures are all fictional and illustrative. Real outcomes depend on your contract, its Z clauses and your Accepted Programme.
Use these alongside the compensation events guide and the full list of NEC4 events.
At a glance
| Example | Sub-clause | Notified by | Result |
|---|---|---|---|
| 1. Client adds a window | 60.1(1) | Project Manager | Money, no time |
| 2. Site access two weeks late | 60.1(2) | Contractor | Money and time |
| 3. Buried obstruction | 60.1(12) | Contractor | Depends on the Site Information |
| 4. Exceptional rainfall | 60.1(13) | Contractor | Only the excess |
| 5. Drawing reply missed | 60.1(6) | Contractor | Small money, some time |
| 6. Search finds no Defect | 60.1(10) | Either | Cost of the search |
| 7. Two that fail | None | Contractor | No change |
1. The Client adds a window
On an office fit-out, the Project Manager instructs a change to the Scope, adding a window to a partition. It issues the notification with the instruction (clause 61.1) and asks for a quotation. The Contractor assesses £7,600 of forecast Defined Cost plus an illustrative 12% Fee, giving £8,512. The window fits within a non-critical activity, with enough float to absorb it, so planned Completion doesn't move. The Prices rise, but the Completion Date stays where it is.
2. Late access to part of the Site
On a housing job, the Accepted Programme shows access to a plot on 1 April, which also matches the contract's access date. The Client's demolition contractor doesn't leave until 15 April. This is a 60.1(2) event, as access came after both dates. No communication caused it, so the Contractor notifies. The critical path runs through that plot, so planned Completion moves by two weeks, as does the Completion Date. Standing time, prolongation and resequencing go in as Defined Cost, plus the Fee.
3. An old foundation in the ground
While excavating, a Contractor finds an old concrete foundation that's not in the Site Information. The question for 60.1(12) is whether, looking forward from the Contract Date, an experienced contractor would have thought it so unlikely that allowing for it was unreasonable. Clause 60.2 says what the Contractor is taken to have considered: the Site Information, public information it refers to, a visual inspection of the Site, and what an experienced contractor could otherwise reasonably obtain.
If old maps referred to in the Site Information show a former mill on the plot, the claim is much weaker. If there's no sign of one anywhere, it's stronger. And only the difference between what was found and what it would have been reasonable to allow for counts. The Contractor should notify at once, because this isn't an instructed event and the time bar applies.
4. A very wet month
On a road scheme, a month's rainfall at the Contract Data location is recorded at 190mm. The weather data show that a figure over 150mm occurs less often than once in ten years in that month. It's an event under 60.1(13), but the assessment looks only at the difference: the effect of the extra 40mm, not the full 190mm. The Contractor needs a record of what it could have done with 150mm, as well as what it did with 190mm. In practice, that's the hard part.
5. A missed reply
A Contractor submits its design for acceptance. The Project Manager doesn't reply within the period for reply, and the work behind it is held up for four days. This falls under 60.1(6), and the Contractor notifies it. It's a modest event, which might be worth a few days of standing resources. Many teams wouldn't bother for two days of no impact, and that's fine, as the test includes an effect on Defined Cost, Completion or a Key Date. See the guide to the period for reply.
6. A search that finds nothing
The Supervisor suspects a Defect in a concealed drain and instructs the Contractor to expose it. The drain is fine. That's a 60.1(10) event, unless the search was needed only because the Contractor gave too little notice of work that blocked a test. The cost of exposing and reinstating is assessed, along with any knock-on delay. If a Defect had been found, the Contractor would have paid to put it right, with no event.
7. Two that fail
- A subcontractor goes into administration. The replacement costs money and time, but this isn't on the list. It's not a Client's act, and it's the kind of risk a Contractor carries. It isn't usually a prevention event either. See clause 61.4 for the reply.
- A wet week. A week of rain stops earthworks, but the month's total doesn't reach the once-in-ten-years level. No event under 60.1(13), and the Contractor can't use 60.1(19) instead, because the risk is one it could have allowed for.
What the examples show
Notice how often the outcome turns on documents rather than opinion: the Accepted Programme date in example 2, the Site Information in example 3 and the weather data in example 4. If you can get those right before the event arises, you've won much of the argument. For the numbers, see how to assess a compensation event.
Related guides
- NEC Compensation Events: The Complete Guide
- Common Compensation Event Mistakes
- Compensation Event: Change to the Scope
- Compensation Event: Access Not Provided
- Keeping a Compensation Event Register
- Compensation Event Flow Chart Explained
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