NEC ECC: Procedure of Assessment of a CE under Option C

In Option C, what is the overall process and workflow for assessment for a CE by the PM and what are the key issues that the PM should aware of?

The compensation event procedure for Option C is the same as it is for all main Options of the ECC and is described at clauses 61, 62, 63 and 64. The compensation events themselves (i.e. the events that the contractor will be compensated cost and time for) are described at clause 60.

In Option C you should note that the only function of a compensation event from a cost point of view is to adjust the target cost. You don’t pay the amount that the compensation event is assessed for (as you pay the actual / real Defined Cost + Fee), the assessment merely gets added to the target to enable the contractor’s share to be assessed in accordance with clause 53.

The key issue for all parties is to ensure you read and understand the contract, then follow it closely! Failure to do so is where many people come unstuck.

Hi Neil,
Can you explain in more detail how would the PM make an assessment for a CE in Option C?