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NEC ECC: Would strike action be considered as a compensation event?

+1 vote
Under an NEC3 ECC Option C Contract, which has clause 60.1 (19) deleted and replaced with "The works are affected by a Force Majeure Event", is unofficial strike action by the Contractor's operatives and their Subcontractors operatives a Compensation Event?

The operatives who went out on strike have not been paid for the time which they were "out" but the Contractor is seeking a Compensation Event relating to the associated delay.
asked Jul 5, 2017 in NEC3 Compensation Events by ASimpleQS (170 points)  

1 Answer

+1 vote
As you typed 'Force Majeure Event' in capitals, I am assuming it is a Defined Term in your conditions of contract, so a corresponding definition should be provided somewhere.  Depending on this definition it is likely that certain 'tests' have to be applied to determine whether the matter is a compensation event, probably in a similar vein to how prevention events are dealt with. One of the primary tests for a prevention event is whether the event stops the works from being completed (at all or) by the Completion Date.

Notwithstanding the above, clause 80 provides for Employer's risks which includes strike action but only in relation to Loss or damage to the works, Plant and Materials.  Where this is the case then this would be a compensation event under clause 60.1 (14).
answered Jul 8, 2017 by Andrew WI (3,600 points)