Waleed Tariq Academy homeNEC4 Contract Preparation · Sections and compensation events
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NEC4 Contract Preparation · Lesson 3 of 3

Sections and compensation events

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Why it matters

Old foundations turn up under Station Road on 3 March 2026, so which clauses apply?

A look ahead to the works.

Section 6clauses 60 to 66, where every rule sits
GBP 81,200and 7 days: what CE007 is finally worth
Notify late and the Prices and dates may not change.

Source: ECC 60.1(12), 61.3.

The rule

A clause's first digit gives its section

clause 20.4 sits beside core 20.1.

1General

10 → 19

2The Contractor's main responsibilities

20 → 29

3Time

30 → 36

4Quality management

40 → 46

5Payment

50 → 53

6Compensation events

60 → 66

7Title

70 → 74

8Liabilities and insurance

80 → 86

9Termination

90 → 93

Source: ECC core clauses, sections 1 to 9.

The rule

A compensation event is notified, quoted, assessed, implemented

Mind the eight weeks.

  1. Notify8 weeks61.3
  2. Quote3 weeks62.3
  3. Reply or assess2 weeks62.3
  4. Implement66.1

Notify “within eight weeks of becoming aware that the event has happened” (61.3).

A quotation prices , the and delay. The Project Manager replies or assesses it herself.

Source: ECC 61.1, 61.3, 62.3, 63.1, 66.1.

See it on the project

CE007 ran from discovery to implementation in nine weeks

Tap a marker, then work out the deadline.

CE007 from discovery to implementation, March to May 2026Found 3 March, notified 6 March, quotations asked for 11 March, quotation 30 March, revision asked 10 April, revised 28 April, accepted 5 May 2026.MarchAprilMayContractorProjectManager1 Found2 Notified as CE3 Quotations asked4 Quotation sent5 Revision asked6 Revised quotation7 Accepted
  1. 13 MarFoundContractor Old foundations found in the culvert trench. The Contractor's planner gives an early warning the same day.
  2. 26 MarNotified as CEContractor Notified as a compensation event under 60.1(12), well inside the eight weeks (61.3).
  3. 311 MarQuotations askedProject Manager Dana Whitfield, the Project Manager, confirms the event within a week and asks for quotations (61.4).
  4. 430 MarQuotation sentContractor Quotation: GBP 86,400 and 9 days, inside the three weeks (62.3).
  5. 510 AprRevision askedProject Manager Dana asks for a revised quotation. The breaker hire period is too long.
  6. 628 AprRevised quotationContractor Revised quotation: GBP 81,200 and 7 days.
  7. 75 MayAcceptedProject Manager Dana accepts it. CE007 is implemented and the Completion Date becomes 7 May 2027 (66.1).
13 MarContractor

…

An tells the Project Manager of a matter that could add cost or delay.

The Contractor became aware on 3 March 2026. What was its last day to notify?

Tuesday 28 April 2026, eight weeks later (61.3). It notified on 6 March, with weeks to spare.

ECC 61.3

Source: ECC 61.3, 61.4, 62.3, 66.1.

Try it

Sort each event by who notifies it

Five events. Each answer gives the clause.

Hint: did the event come from an instruction or decision of the or the , quality inspector?

Event 1 of 5

…

Source: ECC 61.1, 61.3.

Quick check · The time limits

Two questions on what you have just covered

Pick an answer to see why.

Quick checkPick an answer to see if you are right and why
1Dana instructs quotations for CE014 on 1 June 2026. When is the Contractor's quotation due?
22 June 2026
15 June 2026
27 July 2026
2CE014 comes from Dana's instruction. Does the eight week limit apply?
No, she notifies it herself
Yes, from 1 June 2026
Yes, from the Contract Date

2 questions to answer

Source: ECC 61.1, 61.3, 62.3.

Recap

Find the section first, then notify inside eight weeks

Habits that protect the and the dates.

On Monday at work

  • Use the first digit of a clause number to find its section.
  • Note the day you became aware of each event.
  • Diary the end of the eight weeks that day (61.3), and notify with Letter 02.

In the Toolkit: NEC4 ECC Notice Letters (zip) Members

Next: the module check

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Independent course material. It is not published or endorsed by NEC. Clause references are to the NEC4 Engineering and Construction Contract, June 2017 with amendments January 2023, unless another NEC4 contract is named. The project and the people are invented. Short quotes from NEC4 (© NEC 2017) and the FIDIC Red Book (© FIDIC 2017) are used for review and comment. Read the full clauses in your own copy of the contract.

Source: ECC 61.3, 62.3, 66.1.

Go deeper (optional)

A change to the Prices and the dates is the only remedy

Two harder points. Open them when you have a minute.

Can the Contractor recover the cost of an event under the general law instead?

No. Changes to the Prices and dates “are their only rights in respect of a compensation event” (63.6).

ECC 63.6

Do courts read unclear words against the party relying on them?

Rarely. In Persimmon Homes Ltd v Ove Arup & Partners Ltd (2017) the Court of Appeal gave that little room. Use clause 17.1 (notify the clash) and clause 63.10 (the reading favours the Party that did not write the Scope) first.

ECC 17.1, 63.10

Source: ECC 17.1, 63.6, 63.10. Persimmon Homes v Ove Arup (2017).