NEC3 ECSS Compensation Events (CE) Template

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

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

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

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

• Notify under clause 60.1(1) of an instruction to change the Subcontract Works Information
• Notify under clause 60.1(2) that the Contractor has not provided access to the Site
• Notify under clause 60.1(3) that the Contractor 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 Contractor does not work within the stated constraints
• Notify under clause 60.1(6) that the Contractor does not reply to a communication
• Notify under clause 60.1(7) of a change of a decision
• Notify under clause 60.1(8) of an instruction to search for a Defect and no Defect is found
• Notify under clause 60.1(9) that the Subontractor encounters unexpected physical conditions
• Notify under clause 60.1(10) of a weather event
• Notify under clause 60.1(11) of the correction of an assumption
• Notify under clause 60.1(12) of a prevention event
• Notify under clause 60.1(13) of a difference between the final total quantity and the quantity in the Price List
• Notify under clause 60.1(14) of loss or damage which is not the fault of the Subcontractor
• Notify under clause 60.1(15) of a change in the completion date of the main contract
• Notify under clause 1.4 of suspension of performance

You can also use these templates to: 

• Instruct the Subcontractor under clause 61.2 to submit a quotation for a compensation event
• Reply under clause 61.2 to the Subcontractor’s notification of a compensation event
• Notify under clause 61.3 that the Subcontractor did not give early warning
• State assumptions under clause 61.4 about the event
• Notify under clause 61.4 that an assumption on which a compensation event is based was wrong
• Instruct the Subcontractor under clause 62.1 to submit alternative quotations
• Instruct the Subcontractor under clause 62.2 to submit quotations for proposed instructions
• Submit a quotation for a compensation event under clause 62
• Reply to a quotation under clause 62.4
• Notify under clause 62.5 of the Contractor’s assessment of a compensation event
• Instruct under clause 62.6 to submit alternative quotations for a compensation event