NEC ECC: Can a Project Manager reassess a compensation event

If the Project Manager has accepted a quotation for a compensation event and the Contractor has started the work associated with the CE, can the PM reassess the CE if he has realised that the Contractor has not allowed enough time and will now lose money on the CE?


No, clause 65.2 is clear that once implemented a CE quotation is not revised, the only exception being where a PM assumption used in the quotation has proven to be incorrect in which case a new CE is raised for the correction so, technically, the quotation is not actually revised.

Whilst it may seem unfair, doing so would mean that all quotations could be opened up because inevitably the quotation will not match the actual Defined Cost + Fee. This would undermine the whole intention of the change process.

1 Like

If during actual implementation of the works there are deviations from the assumptions provided by the PM in how to assess the CE, then you can reassess the CE. The difference between the original assessment and the new assessment is a compensation event in accordance with 60.1(7)

1 Like

Roger - just a point of clarity here whilst your sentiment is correct. You can revisit PM assumptions in an implemented compensation event but subtly that is a new compensation event under 60.1(17) rather than reopening the original implemented compensation event

1 Like

@Glenn_Hide I am presented with a scenario where the previous PM is no longer involved and a the Contractor is threatening adjudication as a CE was assessed at £20,000. They quoted £220,000 and I believe the correct value should have been £200,000 and it is an admin error (assessed at £20,000 rather than £200,000). I don’t see an actual mechanism to correct this in the NEC3 contract, what would you recommend?