Core Clauses NEC3 Compensation events Cost are alculateg ‘amounts s for al Compensation events 60 60.1 The following are compensation events. (1) The Project Manager gives an instruction changing the Works Information except * a change made in order to accept a Defect or * @ change to the Works Information provided by the Contractor for his design which is made either at his request or to comply with other Works Information provided by the Employer. (2) The Employer does not allow access to and use of a part of the Site by the later of its access date and the date shown on the Accepted Programme. (3) The Employer does not provide something which he is to provide by the date for providing it shown on the Accepted Programme, (4) The Project Manager gives an instruction to stop or not to start any work or to change a Key Date. (5) The Employer or Others ‘+ do not work within the times shown on the Accepted Programme, '* do not work within the conditions stated in the Works Information or ‘* carry out work on the Site that is not stated in the Works Information, (6) The Project Manager or the Supervisor does not reply to a communication from the Contractor within the period required by this contract. (7) The Project Manager gives an instruction for dealing with an object of value or of historical or other interest found within the Site. (8) The Project Manager or the Supervisor changes a decision which he has previously communicated to the Contractor. (9) The Project Manager withholds an acceptance (other than acceptance of ‘@ quotation for acceleration or for not correcting a Defect) for a reason not stated in this contract. (10) The Supervisor instructs the Contractor to search for a Defect and no Defect is found unless the search is needed only because the Contractor gave insufficient notice of doing work obstructing a required test or inspection, (11) A test or inspection done by the Supervisor causes unnecessary delay. (12) The Contractor encounters physical conditions which * are within the Site, * are not weather conditions and * an experienced contractor would have judged at the Contract Date to have such a small chance of occurring that it would have been unreason- able for him to have allowed for them. Only the difference between the physical conditions encountered and those {for which it would have been reasonable to have allowed is taken into account in assessing a compensation event. (43) A weather measurement is recorded * within a calendar month, ‘+ before the Completion Date for the whole of the works and ** at the place stated in the Contract Data the value of which, by comparison with the weather data, is shown to occur on average less frequently than once in ten years, contract seccontract.com © copyright nec 2013 15, a f msnCao Coes main option clauses ‘secondary option clauses cost components contract, data = NEC Engineering and Construction Contract Notifying compensation events 60.2 603 61 614 61.2 613 Only the difference between the weather measurement and the weather whic ‘the weather data show to occur on average less frequently than once in te years is taken into account in assessing a compensation event. (14) An event which is an Employer's risk stated in this contract. (15) The Project Manager certifies take over of a part of the works befor both Completion and the Completion Date. (16) The Employer does not provide materials, facilities and samples for test and inspections as stated in the Works Information. (17) The Project Manager notifies a correction to an assumption which he he stated about a compensation event. (48) A breach of contract by the Employer which is not one of the othe compensation events in this contract. (19) An event which ‘+ stops the Contractor completing the works or ‘+ stops the Contractor completing the works by the date shown on th Accepted Programme, and which * neither Party could prevent, * an experienced contractor would have judged at the Contract Date © have such a small chance of occurring that it would have been unreaso able for him to have allowed for it and * is not one of the other compensation events stated in this contract. In judging the physical conditions for the purpose of assessing a compens= tion event, the Contractor is assumed to have taken into account * the Site Information, * publicly available information referred to in the Site Information, * information obtainable from a visual inspection of the Site and * other information which an experienced contractor could reasonably & expected to have or to obtain. If there is an ambiguity or inconsistency within the Site Information (include ‘the information referred to in it), the Contractor is assumed to have taken i account the physical conditions more favourable to doing the work. For compensation events which arise from the Project Manager or the Super sor giving an instruction, issuing a certificate, changing an earlier decision correcting an assumption, the Project Manager notifies the Contractor of @ compensation event at the time of that communication. He also instructs ® Contractor to submit quotations, unless the event arises from a fault of © Contractor or quotations have already been submitted. The Contractor 0. the instruction or changed decision into effect. The Project Manager may instruct the Contractor to submit quotations for proposed instruction or a proposed changed decision. The Contractor does. put a proposed instruction ar a proposed changed decision into effect. The Contractor notifies the Project Manager of an event which has happen or which he expects to happen as a compensation event if ‘= the Contractor believes that the event is a compensation event and ‘+ the Project Manager has not notified the event to the Contractor. If the Contractor does not notify a compensation event within eight weeks becoming aware of the event, he is not entitied to a change in the Prices, Completion Date or a Key Date unless the event arises from the Project M ‘ager or the Supervisor giving an instruction, issuing a certificate, changing earlier decision or correcting an assumption. 16 copyright nec 2013, www.neccontract.c