NEC4 TSC Compensation Events (CE)Template

Use this free downloadable template to help you create a compensation event notification under the NEC4 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 Prices and the Completion Date.

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

You can use these NEC4 ECC templates for notifying the following compensation events:

• Notify under clause 60.1(1) of an instruction to change the Scope, a Task or the Affected Property
• Notify under clause 60.1(2) that the Client does not allow right of access to the Affected Property
• Notify under clause 60.1(3) that the Client does not provide something that it is to provide
• Notify under clause 60.1(4) the Contractor receives a Task Order after the starting date in the Task Order
• Notify under clause 60.1(5) of an instruction to stop or not start work
• Notify under clause 60.1(6) that the Service Manager or Others do not work within the stated constraints
• Notify under clause 60.1(7) that the Service Manager does not reply to a communication
• Notify under clause 60.1(8) that the Service Manager has changed a decision
• Notify under clause 60.1(9) that the Service Manager withholds an acceptance
• Notify under clause 60.1(10) that a test or inspection causes unnecessary delay
• Notify under clause 60.1(11) of a change to the Affected Property
• Notify under clause 60.1(12) of an event which is the Client's liability
• Notify under clause 60.1(13) that the Client does not provide materials for testing
• Notify under clause 60.1(14) that the Service Manager notifies a correction to an assumption
• Notify under clause 60.1(15) of a breach by the Client
• Notify under clause 60.1(16) of an instruction to correct a mistake in the Price List
• Notify under clause 60.1(17) that a quotation for a proposed instruction is not accepted
• Notify under clause X2.1 of a change in the law
• Notify under clause X12.3(6) of a change in the Partnering Information
• Notify under clause X12.3(7) of a change in the Partnering Timetable
• Notify under clause Y2.5 of suspension of performance

You can also use these templates to:

• Instruct the Contractor under clause 61.2 and 61.4 to submit a quotation for a compensation event
• 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 Service Manager to respond or make an assessment
• Notify under clause 61.5 that the Service Manager has decided that the Contractor did not give early warning
• Notify under clause 61.6 of a correction because an assumption on which a compensation event is based was wrong
• State assumptions under clause 61.6 about the event
• Instruct the Contractor under clause 62.1 to submit alternative quotations for a compensation event
• Reply to a quotation under clause 62.3
• Submit a quotation for a compensation event under clause 62.3
• Notify under clause 64.3 of the Service Manager’s assessment of a compensation event
• Instruct the Contractor under clause 65.1 to submit quotations for proposed instructions
• Submit a quotation for a proposed instruction under clause 65.2
• Notify under clause 65.2 of a reply to a quotation for a proposed instruction