NEC ECS: Rejection of the Compensation Event Due to Critical Path Change

Our Compensation Event time impact request has been rejection with the reason of “Critical Path changed”. But at the submission time, the critical path was on that CE and this delayed us. Then a further delay raised from another path and that became the critical path. Now the main contractor uses this against us to reject all our previous Compensation Events.

(NEC3-OptA.)

What do you think about this?

Whether or not the critical path has or has not changed is completely irrelevant when they are answering “is this a compensation event or not”. When notifying a compensation event it is simply a statement of “this thing has or will happen” and that “it is a reason under the contract to notify a CE” i.e. fits a reason within 60.1. Clause 61.4 lists the only reasons they can say “no” for.

Whether or not the critical path has changed may affect the assessment of the resultant cost. It may have a direct cost, but not affect the critical path. That does not change it being a compensation event - only how it will be assessed.