This NEC quotation template gives you a cover sheet and build-up for a compensation event quotation under the NEC4 Engineering and Construction Contract (ECC). Under clause 62.2, a quotation has to show the proposed change to the Prices, how far the Completion Date and any Key Dates would move, and details of how you assessed them.
The wording is our own sample, and the figures are illustrative. For the rules on content and timing, see the guide to quotations for compensation events. It is one of a set of templates in managing NEC contracts.
The cover sheet
| Quotation for a compensation event | Clause 62 of the conditions of contract |
|---|---|
| Contract | [Name and number] |
| Event reference | CE-[number], revision [A, B ...] |
| Date submitted | [Date, no later than the date the instruction allows] |
| Instruction to quote | [Reference and date] |
| Dividing date | [Date used, and why] |
| Proposed change to the Prices | £[amount] [increase/reduction] |
| Delay to the Completion Date | [Number of days, or none] |
| Delay to Key Dates | [Which, how long, or none] |
| Programme | [Attached as a revised programme / changes to the Accepted Programme described below] |
| Assumptions | [Those instructed under 61.6. Don't add your own without saying so] |
| Reply | Please reply under clause 62.3 by [date]. |
The build-up
Assessment is the effect of the event on the actual Defined Cost of work already done, plus the forecast Defined Cost of work not yet done, plus the resulting Fee (63.1). Split it that way in your sheet, as the two parts rest on different evidence.
| Section | Include | Evidence to attach |
|---|---|---|
| A. Done by the dividing date | Actual cost by Schedule of Cost Components heading | Timesheets, plant records, invoices |
| B. Forecast after the dividing date | Planned resources by operation, by heading | Method, durations, programme extract, quotes |
| C. Risk allowance | Only matters with a significant chance of occurring that are at the Contractor's risk | A named list with reasoning |
| D. Fee | Fee percentage applied to the Defined Cost | Contract Data rate |
| E. Total | Proposed change to the Prices |
The cost headings come from the Schedule of Cost Components, or the Short Schedule where your Option allows. See the Schedule of Cost Components and the Fee.
A worked illustration
A fictional Option A job, the 60.1(1) extra headwall. Work hasn't started at the dividing date. All figures are invented to show layout, including the Fee rate.
| Item | Build-up | £ |
|---|---|---|
| People | Gang of four, 10 days | 11,200 |
| Equipment | Excavator and dumper, 8 days | 4,300 |
| Plant and Materials | Concrete, reinforcement, formwork | 9,600 |
| Subcontractors | Headwall facing, quoted | 5,200 |
| Risk allowance | One extra day's dewatering if the water table is high | 900 |
| Subtotal | Defined Cost plus allowance | 31,200 |
| Fee | At an illustrative 10% | 3,120 |
| Change to the Prices | 34,320 |
The time statement says: "The headwall adds 8 working days on the critical path before the culvert backfill. Planned Completion moves from 12 June to 22 June, measured on the latest Accepted Programme at the dividing date. We quote a delay of 10 days to the Completion Date." The measure is the movement of planned Completion, so terminal float isn't lost to the Contractor in the process. See compensation event delay.
What gets quotations rejected
- Using tender rates instead of forecast cost. The Prices aren't the measure for this. An agreed rate can be used only if both sides agree.
- Time stated as a list of activities. The contract looks for movement in planned Completion, so show that.
- Vague allowances. A flat percentage won't get accepted easily. Name each risk you're allowing for.
- No programme link. If the event changes your plan, include what changes (62.2).
- Quoting late. That opens the way for the Project Manager's own assessment under 64.1.
Not sure what to do when a revision is requested? See revised quotations. Under NEC3, the same build-up applies, with the delay at 63.3 instead of 63.5.
Related guides
- Managing NEC Contracts: A Practical Guide
- Project Manager Instruction Template
- Programme Submission Template
- NEC Forms: What You Need
- NEC Letter Templates: What to Include
- Compensation Event Notice Template
How this looks in Contract Status
An overdue quotation from the Contractor side, with the notice under 62.6. See the worked example.
See how this works in practice
Click through Contract Status with sample contracts: raise the notice, reply to it, and watch both sides of one record.
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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.