NEC ECS: Compensation Event on Period of Delay

NEC3 and NEC4 Contracts Compensation Events
1

NEC3 ECS Option A

Subcontractor is currently undertaking Compensation Event works (Activity A) in an area that bottlenecks the critical path. The works were expected to have been completed on the 27th September but forecast completion has been revised to 10th October.

A redesign of the works was originally expected to accrue an extra delay from the 27th September to the 11th October - this redesign was only confirmed/ issued as a CE (Activity B) as necessary at a later date, by which the Activity A was already delayed by approx. 8 days.

No programme has yet been submitted and the redesign has therefore not yet been shown on a programme for acceptance.

Is it correct to account for the delay on the design as being from 27th September + 8 days (delay accrued on Activity A by the time Activity B CE was issued) OR we need to go back to the accepted programme that has no mention of Activity B?

Thank you for your time in advance.

2

The delay is assessed as the length of time that the compensation event delays planned Completion, which is assessed using the Accepted Programme.

Where the Accepted Programme is ‘out of date’ then this should be updated to the point in time when the CE actually occurred, regardless of when it was actually notified.

The assessment measures the affect on the programme operations which are specifically due to the CE, without taking account of other issues which could ‘contaminate’ the assessment, unless these are directly impacted by the CE…

NEC have written a practice note ‘assessing delays due to compensation events’ which you may find helpful. It can be downloaded from;