An Overview of Compensation Events under NEC4 ECS

In the last course we looked at the procedure for assessing compensation events.  We now turn to the matters which will give rise to compensation events.

Compensation events are listed in clause 60.1(19).  Within the NEC4 ECS there are 20 basic compensation events, along with 3 additional compensation events which apply to Options B and D. There is also a further option for the Parties to add additional compensation events in the Subcontract Data, which would then fall under clause 60.1(21).

After completing this course, you should:

1. Understand the different compensation events and when they apply
2. Identify the Contractor’s obligations in granting site access, providing required materials and instructions, and responding to communications, ensuring compliance with contractual timelines
3. Know how compensation events allocate risk between the Contractor and Subcontractor, including force majeure, unforeseen physical conditions, and third-party actions affecting subcontract works.