Use this free downloadable template to help you create a compensation event notification under the NEC3 Engineering and Construction Contract (ECC). 

Compensation events are events listed in the contract which, if they occur and do not arise from the Contractor’s fault, entitle the Contractor to be compensated for any effect the event may have on Prices, the Completion Date and any Key Dates.

The ECC contains strict notification and procedural requirements which take a compensation event from notification to implementation.

You can use these NEC3 ECC templates for notifying the following compensation events:

• Notify under clause 60.1(1) of an instruction to change the Works Information
• Notify under clause 60.1(2) that the Employer has not provided access to the Site
• Notify under clause 60.1(3) that the Employer has not provided something that he has to provide
• Notify under clause 60.1(4) of an instruction to stop or not start work or to change a Key Date
• Notify under clause 60.1(5) that the Employer or Others do not work within the stated constraints
• Notify under clause 60.1(6) that the Project Manager or Supervisor does not reply to a communication
• Notify under clause 60.1(7) of an instruction dealing with an object of interest or value
• Notify under clause 60.1(8) that the Project Manager has changed a decision
• Notify under clause 60.1(9) that the Project Manager withholds an acceptance
• Notify under clause 60.1(10) of an instruction to search for a Defect and no Defect is found
• Notify under clause 60.1(11) that a test or inspection causes unnecessary delay
• Notify under clause 60.1(12) that the Contractor encounters unexpected physical conditions
• Notify under clause 60.1(13) that an extreme weather measurement is recorded
• Notify under clause 60.1(14) of an event which is the Employer’s risk
• Notify under clause 60.1(15) that the Project Manager certifies take over before Completion
• Notify under clause 60.1(16) that the Employer does not provide materials for testing
• Notify under clause 60.1(17) that the Project Manager notifies a correction to an assumption
• Notify under clause 60.1(18) of a breach by the Employer
• Notify under clause 60.1(19) of a prevention event
• Notify under clause 60.4 of a difference between the final total quantity of an item and the quantity in the Bill of Quantities which delays completion (main Options B and D)
• Notify under clause 60.5 of a difference between the final total quantity of an item and the quantity in the Bill of Quantities (main Options B and D)
• Notify under clause 60.6 of the correction of a mistake in the Bill of Quantities caused by a departure from the method of measurement (main Options B and D)
• Notify under clause X2.1 of a change in the law
• Notify under clause X12.3(7) of a change in the Partnering Timetable
• Notify under clause X12.3(8) of a change in the Partnering Information
• Notify under clause X14.2 of a delay in making advanced payment
• Notify under clause X15.2 of correcting a Defect for which the Contractor is not liable
• Notify under clause Y2.4 of suspension of performance

You can also use these templates to:

• Instruct the Contractor under clause 61.1 or 61.4 to submit a quotation for a compensation event
• Instruct the Contractor under clause 61.2 to submit quotations for proposed instructions
• Reply under clause 61.4 to the Contractor’s notification of a compensation event
• Notify under clause 61.4 and 62.5 of an agreement to extend the period for a submission or reply
• Notify under clause 61.4, 62.6 and 64.4 of a failure of the Project Manager to respond or make an assessment
• Notify under clause 61.5 that the Project Manager has decided that the Contractor did not give early warning
• State assumptions under clause 61.6 about the event
• Notify under clause 61.6 of a correction because an assumption on which a compensation event is based was wrong
• Instruct the Contractor under clause 62.1 to submit alternative quotations for a compensation event
• Submit a quotation for a compensation event under clause 62.3
• Reply to a quotation under clause 62.3
• Notify under clause 64.3 of the Project Manager’s assessment of a compensation event

 You can download this template for free!