NEC3 TSC Compensation Events (CE) Template

Use this free downloadable template to help you create a compensation event notification under the NEC3 Term Service Contract (TSC).

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 the Prices.

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

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

• Notify under clause 60.1(1) of an instruction to change the Service 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 Service Manager does not reply to a communication
• Notify under clause 60.1(7) of a change of a decision
• Notify under clause 60.1(8) withholding an acceptance
• Notify under 60.1(9) of a test or inspection causing unnecessary delay
• Notify under clause 60.1(10) of a change to the Affected Property
• Notify under clause 60.1(11) that the Employer does not provide materials for testing
• Notify under clause 60.1(12) of an event which is the Employer’s risk
• Notify under clause 60.1(13) of the correction of an assumption
• Notify under clause 60.1(14) of the breach by the Employer
• Notify under clause X2.1 of a change in the law
• Notify under clause X12.3(7) of a change in the Partnering Information
• Notify under clause X19.10(1) An instruction to change a Task Order
• Notify under clause X19.10(2) Contractor receives a Task Order after the starting date stated in the Task Order
• Notify under clause X19.10(3) Employer does not provide right of access)
• Notify under clause X19.10(4) Employer does not provide something which he is to provide
• Notify under clause X19.10(5) Employer or Others do not work within the stated constraints
• Notify under clause X19.10(6) A prevention event occurs
• Notify under clause X19.10(7) Task Completion Date is later than the end of the service period
• Notify under clause Y2.4 of suspension of performance

You can also use these templates to:

• Instruct the Contractor under clause 61.1 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 62.5 a request to extend the time to submit a compensation event quotation
• Notify under clause 61.4 and 62.5 of a decision to extend the time for a submission or reply
• Notify under clause 61.4, 62.6 and 64.4 of a failure of the Service Manager to respond or make an assessment
• Notify under clause 61.5 that the Contractor did not give early warning
• State assumptions under clause 61.6 about the event
• Notify under clause 61.6 that an assumption on which a compensation event is based was wrong
• Instruct the Contractor under clause 62.1 to submit alternative quotations
• Submit a quotation for a compensation event under clause 62
• Reply to a quotation under clause 62.3
• Notify under clause 64 of the Service Manager’s assessment of a compensation event