NEC3 ECC: Can a compensation event be revisited to correct a mistake?

A compensation event was implemented when the PM notified his assessment of a compensation event. He later found that his assessment had used the wrong fee % and he wishes to revise the assessment to correct this mistake.

All the published advice seems to rely on clause 65.2 to prevent a compensation from being revised. This clause prevents a compensation event, once implemented, from being revised if a forecast upon which it is based is shown by later recorded information to have been wrong. This does not apply in this situation. The PM is not revising the forecast, i.e. the work not yet done when the compensation event was assessed in accordance with clause 63.1. He simply wishes to apply the correct fee % set down in the Contract Data.

Whilst the contract is silent about correcting mistakes, I believe that there is little that a contractor could do if the PM revises his assessment for this reason. If challenged through adjudication, an adjudicator would almost certainly decide that the PM’s revised assessment is correct because it complies with the contract by applying the correct fee %. Would you agree?


Nick, I think you answered your own question very well. If it was a clear mistake by using the “wrong fee %” as opposed to the “correct fee %” stated in the Contract Data, there is no basis for dispute. The PM is not re-assessing the Defined Cost. He is merely correcting a administrative mistake.
Clause 10.1 is clear the we shall act as stated in the contract. The PM didn’t by making the mistake. He is obliged to correct it.
Clause 61.3 dictates the method for assessment.
Clause 11.2(8) states what the Fee is.
Hence the PM is not authorised to use an incorrect fee %.