Keeping a Compensation Event Register

A compensation event register is a single list of every event on the contract, showing where each one stands, what's due next and what it's worth. NEC doesn't require one, unlike the early warning register, but disagreements about time bars and treated acceptance usually come down to dates that a good register would hold.

Either side can keep it, and many jobs have one on each side, which then gets reconciled at regular intervals. For what the register is tracking, see the compensation events guide. For registers in general, see the NEC registers guide.

Fields to hold

Field	Why it's there
Reference and title	Used in every letter
Sub-clause, such as 60.1(5)	For reporting by cause, and checking entitlement
Notified by	Sets which route applies
Date of awareness	Starts the eight weeks under clause 61.3
Date notified	Sets the dividing date for most events
Related instruction or early warning	Linked evidence, and a dividing date for instructed events
Project Manager's decision and date	One week from notice, unless extended
Quotation instructed	Starts the three weeks
Quotation submitted, and revision number	Starts the two-week reply
Reply and date	Accepted, revise or assess
Failure notified and date	Starts the further two weeks towards treated acceptance
Assumptions and 61.5 statement	Affects the assessment
Quoted and implemented value	Reporting and forecasts
Delay in days, Key Dates moved	Keeps track of the Completion Date
Implemented date	Closes the event
Next action, owner and due date	What actually gets people moving

Statuses

A small set of statuses keeps reporting honest. These work for most jobs, although they're ours and not a contract requirement:

1. Potential. Spotted, not yet notified. Keep the awareness date.
2. Notified. Awaiting the Project Manager's decision.
3. Not a compensation event. Closed by decision, with reasons. Note any dispute.
4. Awaiting quotation. Instructed and on the Contractor's clock.
5. Quotation with the Project Manager. On the Project Manager's clock.
6. Revising. Back with the Contractor.
7. Project Manager assessing. Under clause 64.
8. Implemented. Closed, with a value and any change in dates.

Add a separate flag for "failure notified" rather than a status, since an event can have that flag at more than one stage.

Dates to calculate automatically

• Date of awareness plus 8 weeks: last safe day to notify.
• Notified date plus 1 week: decision due.
• Instruction date plus 3 weeks: quotation due.
• Submission date plus 2 weeks: reply due.
• Failure notice date plus 2 weeks: treated acceptance arises.

The periods above are the standard ECC ones under clause 62.3 and its neighbours. Change them if your contract amends them or uses another form. A spreadsheet can handle this on a small job; the guide to spreadsheet tracking explains where it starts to fail. Contract Status is one example of a system that handles these dates and records.

A sample line

Ref	Clause	Status	Notified	Next action	Due	Value	Days
CE-022	60.1(3)	Quotation with the Project Manager	4 May	Reply (PM)	12 June	£38,500	5

This fictional line tells a reader everything needed in a single glance. It's a good target for how much detail a summary view should have.

What to report

Keep the monthly report to the things that lead to a decision:

• Count and value of events by status, showing what's still unimplemented.
• Implemented total against the original Prices, and the current Completion Date.
• Overdue items, by who holds them.
• Oldest open event, and average days from notice to implementation.
• Events by cause, which shows recurring problems such as late design information.
• Forecast value of potential and unimplemented events, for the Client's budget.

Reconcile the two parties' registers at regular meetings. A disagreement over whether an item is on the register at all is far better found now than at final account stage. The guide to NEC reporting has more ideas.

Related guides

• NEC Compensation Events: The Complete Guide
• Compensation Event Flow Chart Explained
• Compensation Event Examples
• Common Compensation Event Mistakes
• Can a Compensation Event Be Notified Without an Early Warning?
• Compensation Event vs Relief Event

This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.