An event which is not one of the other compensation events stated in the contract has prevented the Contractor from completing the works by the date shown on the Accepted Programme. Is this a compensation event?

NEC3 and NEC4 Contracts Compensation Events
2

The relevant compensation event is clause 60.1 (19). The clause actually says “stops the Contractor completing the works by the date shown on the Accepted Programme”. “Stops” is a strong test and means that it is not just difficult or more expensive to complete the works. The event also has to be one which:

	neither Party could prevent,

	an experienced Contractor would have judged at the Contract Date to have such a small chance of occurring that it would have been unreasonable for him to have allowed for it and

	is not one of the compensation events stated in the contract.