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NEC ECC: Compensation Event Time Bar Clause 61.3

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Under NEC3 ECC, to ensure a change to the Prices, the Completion Date or Key Date, the Contractor was required to ' ... notify a compensation event within eight weeks of becoming aware of the event ... '.

Under NEC4 ECC, however, the Contractor is required to ' ... notify a compensation event within eight weeks of becoming aware THAT THE EVENT HAS HAPPENED ... '.

Articles have been written to discuss this change and suggested that some form of judicial clarification is required to establish whether the 'time bar' for the awareness test applies to;

 - when the event actually happens,
or
 - when the event is known to be a compensation event.

Personally I would suggest the latter as there is no contract provision to notify a compensation event for an event which is NOT actually a compensation event.

Any thoughts?
asked Aug 4 in NEC3 Compensation Events by Andrew WI (1,070 points)  
   

1 Answer

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Good question.

I think the obligation is on the Contractor to notified if he believes the matter to be a compensation event so presumably it is within 8 weeks of becoming aware that a matter he believes is a compensation event happened. It is up to the PM to decide if the matter is a CE.

The provision is to notify in the belief that it is a CE, if the PM decides otherwise the notification was still valid so arguable there is provision to notify for an event which is not a CE.
answered Aug 4 by dave bates (4,790 points)