NEC3 ECSC Compensation Events (CE) Template

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

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

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

• Notify under clause 60.1(1) of an instruction to change the Works 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 does not work within the stated constraints
• Notify under clause 60.1(6) that the Employer 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 Contractor 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 Contractor
• Notify under clause 1.4 of suspension of performance

You can also use these templates to:

• Instruct the Contractor under clause 61.2 to submit a quotation for a compensation event
• Reply under clause 61.2 to the Contractor’s notification of a compensation event
• Notify under clause 61.3 that the Contractor 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 Contractor under clause 62.1 to submit alternative quotations
• Instruct the Contractor 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 Employer’s assessment of a compensation event

Instruct under clause 62.6 to submit alternative quotations for a compensation event