NEC ECC: Raising a CE under an incorrect clause

If a Compensation Event has been raised under an incorrect clause so for example, 60.1 (1) when it should of been raised under (12) and this is noticed at Rejection. Can the same CE be raised without risk of being ‘time-barred’ ?

Once a compensation event has been notified the Project Manager is obliged to respond. In doing so they consider the bullet points under clause 61.4. The last one is;

’ - is not one of the compensation events stated in this (the) contract’.

That means that, irrespective of which sub-clause has been quoted on the notification, the PM is obliged to impartially assess the matter and decide whether it is a compensation event, in accordance with the contract.

There is no express requirement to state, with a notification, which compensation event has occurred, although it may assist with the procedure if you do so.

It is not an absolute obligation to state under which clause you are confirming it is a CE - just a very good idea to. A Contractor should satisfy themselves why it is one, and the best way is to confirm exactly why it is one. If the wrong one was not listed, and the PM rejected it as they could not see why it was one, I think the Contractor would be pretty quick to reissue it saying which reason in 60.1 they believed it fitted.

Equally pretty futile to reject if they think it is under the wrong clause, but they probably agree it is one but for one of the other reasons. In that instance if I was the Project Manager I would accept it is a CE but for completeness state which one it was under. I don’t see that the time bar would count here - as they have notified, they just need to re-notify under the right reason. Even if it was rejected and then reissued under the correct clause - all of that should never even come close to testing the time-bar anyway as that should be done well within eight weeks.