It can be a compensation event, if it passes every part of the test: a prevention event under NEC, at 60.1(19), covers something neither Party could prevent, so unlikely at the Contract Date that an experienced contractor couldn't reasonably have allowed for it, which stops completion. What decides it is whether work has truly been stopped, not just made harder, and what could have been foreseen at the Contract Date.
The route applies in NEC3 and NEC4 ECC. NEC has no force majeure clause. See force majeure under NEC for that comparison.
What to do now
- Protect people and secure the Site. Comply with any official order and keep a copy.
- Tell the Project Manager, and give an early warning (15.1; NEC3 ECC 16.1). Clause 19.1 says that in this situation the Project Manager tells you by instruction how to handle the event, so ask for it in writing.
- Notify the compensation event no later than eight weeks after you became aware (61.3; seven weeks under NEC4 ECS). An event like this rarely arrives from the Project Manager's own notification, so assume the bar is running.
- Take stock of what can continue. Off-site design, procurement and any area unaffected should keep going, as 63.9 assumes a competent, prompt reaction.
- Tell your insurer and check your subcontracts.
- Keep records of the event, what was stopped, what you did to reduce the effect, and the dates. The event may run for a long time, so ask the Project Manager for assumptions under 61.6.
The four tests
| Test | Likely to pass | Likely to fail |
|---|---|---|
| It stops you completing the works, or completing by planned Completion on the Accepted Programme (NEC4 says the whole of the works) | An exclusion zone closes the Site, or the only route to it | Slower output, extra cost or a brief stoppage with no effect on planned Completion |
| Neither Party could prevent it | Outside either side's control | Could have been avoided with different planning or a second supplier |
| Experienced contractor would have judged the chance so small at the Contract Date that allowing for it was unreasonable | No warning, no history, not in the public eye | Already known, already happening or a familiar risk when you signed |
| It isn't another compensation event | No other entry covers it | Weather, ground, access, Client breach: use those entries instead |
The third test is the one that catches people. For a pandemic, your Contract Date is critical. A contract signed after the risk was public knowledge can't easily say the chance was too small to allow for. Your contract may also have a Z clause on this, or extra compensation events at 60.1(21) in NEC4, so look there first.
Fictional example
A substation build on Option C, with illustrative figures. A fire at a neighbouring chemical plant leads the authorities to impose a five-week exclusion zone that includes the whole Site. Nobody on the project could have prevented it, and no risk register or public document flagged anything like it.
- The Contractor notifies 60.1(19) on day two and asks for a 19.1 instruction.
- The Project Manager instructs demobilisation of most plant, then notifies assumptions of a five-week closure (61.6), and instructs the Contractor to quote.
- The quotation has Defined Cost for standing and demobilising of £190,000, plus Fee, with planned Completion five weeks later. The target and the Completion Date both move.
- When the zone actually lasts six weeks, the Project Manager corrects the assumption, and that's a further event under 60.1(17).
The other side's likely response
The Client side will test each limb. Expect to hear that the Site could have kept working in part, that your suppliers' problems aren't "stopping" under this entry, that the risk was foreseeable, and that the event really belongs under another entry. They'll also ask for evidence from independent sources: official orders count for more than internal emails.
If it goes on for a long time
A very long stoppage raises termination. Under 91.7 (reason R21) the Client may terminate if an event that passes the same tests stops completion, or stops completion by the planned date and the forecast delay to Completion is over 13 weeks. The right belongs to the Client, not the Contractor. The termination reasons guide gives more detail.
Contract position against practice
The contract says time and money follow if the tests are met. In practice, the event may be disputed and still need managing, so agree a safe shutdown and a restart plan early, with the assessment running in parallel. A new law or government rule may fall under Option X2 if it's in your contract. Legal questions, such as whether a particular order counts, or what happens under your insurance, need specific advice. For the fuller test, see the prevention event guide, and for similar situations, NEC questions answered.
Related guides
- NEC Questions Answered: Real Situations on Site
- The Client Wants Us to Finish Early: Must We Agree?
- We Are Running Behind Programme: What Should We Tell the PM?
- The PM Will Not Accept Our Programme: What Now?
- Material Prices Have Risen Sharply: Can We Recover the Increase?
- We Cannot Get Enough Labour: Is There Any Relief?
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.
Take the guided tour Book a demo
Use the NEC deadline calculator, use the free NEC tools or download free NEC templates.
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.