A compensation event gives both time and money, where the event affects each. A relief event, in the contracts that use the term, usually gives time or protection from a contractual remedy, but no money. Standard NEC ECC has no relief events: every listed event goes through the same compensation event process, whatever its cause.
So if someone on an NEC job talks about relief events, they are either using language from another contract or referring to something added by amendment. For the NEC side, see the compensation events guide.
What each gives
| Compensation event (NEC ECC) | Relief event (typical usage elsewhere) | |
|---|---|---|
| More time | Yes, if planned Completion or a Key Date is delayed | Usually |
| Money | Yes, on the effect on Defined Cost plus Fee | Usually no |
| Protection from delay damages or termination | Indirectly, because the Completion Date moves | Usually the main point of it |
| Who carries the cost | Client, for the change assessed | Each side tends to carry its own |
| Where the term comes from | The NEC contracts themselves | Other forms and bespoke contracts; the meaning depends on the document |
The right-hand column is only a generalisation. A relief event means whatever its contract says it means, so read the definition in the document you are working with.
Why NEC does it differently
JCT users are familiar with a similar split, between grounds for more time and grounds for loss and expense. Under NEC there's one list, and each event on it gives both effects if the facts support them. That fits the broader design: one route, one assessment, one result. The JCT and NEC comparison looks at that in more detail.
The most striking example is 60.1(19), the prevention event. Force majeure wording in other contracts often gives time only. Under NEC, an event that neither Party could prevent, and that an experienced contractor would have thought too unlikely to allow for, is a compensation event with both time and money. There's more on this in the guide to force majeure under NEC.
Where a time-only rule can appear in NEC
Clients can and do change the default position, usually by a Z clause. Things to look out for:
- A Z clause saying certain events, such as weather or utility delays, give a change to the Completion Date but no change to the Prices.
- Z clauses that delete an event from the list, for example 60.1(19), leaving the risk with the Contractor.
- Additional events listed under 60.1(21), with restricted effects stated beside them.
- A framework or public-sector amendment using the words "relief event" in a defined way.
Read such a clause closely. Check the process it uses too. A restricted event may still need notifying within eight weeks, and may still be quoted for and implemented as usual, with the money simply set to nil.
A worked example
A fictional eight-month job. There's a month of exceptional rainfall that passes the 60.1(13) test and delays planned Completion by two weeks. The excess-weather cost of standing crews comes to an illustrative £70,000 plus Fee.
| Basis | Time | Money |
|---|---|---|
| Unamended NEC4 ECC | 2 weeks | £70,000 plus Fee |
| Same contract with a Z clause making weather time-only | 2 weeks | Nil |
| Same contract with 60.1(13) deleted | None | None; the risk stays with the Contractor |
The same rainfall has three different outcomes, depending only on the contract. It's worth raising this at tender stage: the Contractor needs to price the risk it's being given, and the Client should know what it's paying for. See risk allocation under NEC.
Practical advice
- On an NEC job, use NEC's words. A notice claiming a "relief event" may confuse matters. Cite the 60.1 sub-clause.
- If your subcontract is a different form from the main contract, compare the two. A main contract event with money may sit above a subcontract giving only time, and you'd want to spot that before you sign.
- Check the full NEC4 list against your contract's amendments at the start of the job, and brief the team on what's changed.
Related guides
- NEC Compensation Events: The Complete Guide
- Keeping a Compensation Event Register
- Compensation Event Flow Chart Explained
- Compensation Event Examples
- Compensation Events Under Option E
- Can a Compensation Event Be Notified Without an Early Warning?
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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.