# NEC3 ECC: Assessing Compensation Events

**URL:** <https://reachback.builtintelligence.com/t/nec3-ecc-assessing-compensation-events/3941>\
**Category:** Compensation Events\
**Created:** [7 February 2017 08:38 UTC](https://reachback.builtintelligence.com/t/nec3-ecc-assessing-compensation-events/3941 "2017-02-07T08:38:12Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Roger\_Blando](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@Roger\_Blando](https://reachback.builtintelligence.com/u/Roger_Blando)\
**Post date:** [7 February 2017 08:38 UTC](https://reachback.builtintelligence.com/t/nec3-ecc-assessing-compensation-events/3941/1 "2017-02-07T08:38:12Z")

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We are currently using an Option D Contract. We are currently in the process of assessing a Compensation Event due to revised design which leads to reduction in quantities. If Parties did not reach agreement that existing BOQ rate or a new rate shall be used in assessing a Compensation Event, then Defined Cost plus fee will be used to assess the CE.  
Question is how do you compute the adjustment to the Price?

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**Author:** ![dave\_bates](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/dave_bates/32/55_2.png) [@dave\_bates](https://reachback.builtintelligence.com/u/dave_bates)\
**Post date:** [12 March 2017 13:52 UTC](https://reachback.builtintelligence.com/t/nec3-ecc-assessing-compensation-events/3941/2 "2017-03-12T13:52:03Z")

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the adjustment to the original Total of the Prices should be based on the change in Defined Cost + Fee due to the CE. You will therefore have to work out what the change is eg the Defined Cost + Fee to carry out 1,000 units = X the Defined Cost + Fee to carry out 800 units is Y therefore the adjustment is Y-X.

The assessment will also need to consider any effects on planned Completion and contractor’s risks.