NEC3 compensation events in the Engineering and Construction Contract are listed at clause 60.1 and run from (1) to (19), with more in the Options. NEC4 keeps those 19 in the same order and adds two. If your contract is NEC3 (the April 2013 edition is the one summarised here), the terms and some clause numbers around the list differ from NEC4, so it pays to know which you are on.
For the process that applies to these events, see the NEC compensation events guide. Always check your contract too: earlier NEC3 reprints and Z clauses may vary from this.
The NEC3 ECC list
| 60.1 | In plain English | Where NEC4 differs |
|---|---|---|
| (1) | Project Manager's instruction changes the Works Information, except to accept a Defect or to change the Contractor's own design at its request or to fit the Employer's Works Information | "Scope" replaces Works Information |
| (2) | Employer gives access to part of the Site after both its access date and the Accepted Programme date | "Client" replaces Employer |
| (3) | Employer doesn't provide something by the date on the Accepted Programme | "Client" |
| (4) | Instruction to stop or not start work, or to change a Key Date | No real change |
| (5) | Employer or Others stray outside Accepted Programme times or Works Information conditions, or do Site work not stated there | "Client"; "Scope" |
| (6) | Project Manager or Supervisor misses a reply period | No real change |
| (7) | Instruction about an object of value or historical interest found on the Site | No real change |
| (8) | Project Manager or Supervisor changes a decision it has communicated | No real change |
| (9) | Project Manager withholds an acceptance for a reason not in the contract (acceleration and Defect-related quotations excepted) | No real change |
| (10) | Supervisor instructs a search and no Defect is found, unless too little notice was the only reason for the search | No real change |
| (11) | Supervisor's test or inspection causes unnecessary delay | No real change |
| (12) | Physical conditions within the Site, not weather, with so small a chance at the Contract Date that allowing for them would be unreasonable; only the excess counts | Same test |
| (13) | A month's weather measurement, before the Completion Date, shown to occur less than once in ten years on average; only the excess counts | Same test |
| (14) | An Employer's risk stated in the contract happens | Becomes a "Client's liability" in the conditions |
| (15) | Take over of part of the works is certified before both Completion and the Completion Date | No real change |
| (16) | Employer doesn't provide materials, facilities or samples for tests as stated | "Client"; "Scope" |
| (17) | Project Manager corrects an assumption it stated about a compensation event | No real change |
| (18) | A breach by the Employer that isn't another compensation event | "Client" |
| (19) | An event neither Party could prevent, too unlikely to allow for at the Contract Date, that stops completion or stops completion by the Accepted Programme date, and isn't another compensation event | Refers to completing the whole of the works |
| Not in NEC3 | (20) a quotation for a proposed instruction isn't accepted; (21) extra events stated in the Contract Data |
Events in the NEC3 Options
- 60.4, 60.5 and 60.6 (Options B and D): quantity differences against the Bill of Quantities, the delay they cause and corrected mistakes in it. NEC4 keeps these numbers.
- X2.1: a change in the law.
- X12.3: Core Group changes to the Partnering Information or timetable.
- X14.2: a late advanced payment.
- X15.2: correcting a Defect the Contractor isn't liable for.
- Y2.4: suspension of performance under the Construction Act. In NEC4 this moves to Y2.5.
What else moves around the list
The list changes little, but the clauses that run it do. These are the differences most likely to trip up someone moving between editions.
| Topic | NEC3 ECC | NEC4 ECC |
|---|---|---|
| Instruction to quote, sent with the Project Manager's notice | 61.1 | 61.2 |
| Proposed instructions | 61.2 and 62.3; declining simply ends it | Clause 65; declining can itself be an event, 60.1(20) |
| Delay assessment | 63.3 | 63.5 |
| Early warning effect on assessment | 63.5 | 63.7 |
| Risk allowances | 63.6, matters at the Contractor's risk | 63.8, matters that aren't compensation events |
| Reasons Project Manager can give under 61.4 | Four, none about late notification | Adds notified outside the timescales |
| Implementing | 65.1 | 66.1 |
That 61.4 change is a practical one. In NEC4 a late Contractor's notice is expressly a reason for the Project Manager to say the Prices and dates won't change. Under NEC3, the same result comes from the time bar in clause 61.3, but it isn't one of the listed decisions.
A note for anyone working across both
Don't copy letter templates between the editions without changing them. A notice under NEC3 referring to the Client, the Scope or clause 66 looks careless, and it invites the reply that the notice doesn't do what the contract asks. The NEC4 compensation events list has the matching table, and NEC3 vs NEC4 covers the wider changes.
Related guides
- NEC Compensation Events: The Complete Guide
- The Compensation Event Process Step by Step
- How to Notify a Compensation Event
- Clause 61.1: Project Manager Notification
- What Is a Compensation Event?
- The Full List of NEC4 ECC Compensation Events
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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.