# NEC3 PSC Compensation Events
**URL:** https://reachback.builtintelligence.com/t/nec3-psc-compensation-events/4878
**Category:** NEC3 and NEC4 Contracts
**Created:** [28 January 2019 17:18 UTC](https://reachback.builtintelligence.com/t/nec3-psc-compensation-events/4878 "2019-01-28T17:18:09Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@sammyb](https://reachback.builtintelligence.com/u/sammyb)
#### Post date: [28 January 2019 17:18 UTC](https://reachback.builtintelligence.com/t/nec3-psc-compensation-events/4878/1 "2019-01-28T17:18:09Z")
Clause 65.2 of the NEC3 PSC Option E states:
‘The assessment of a compensation event is not revised if a forecast upon
which it is based is shown by later recorded information to have been wrong’
Does this mean once a CE is implemented that is how it is valued? I.e the Implemented value is paid rather than the time charge value.
Option E is time charge for ‘time properly spent’.
It seems obscure than once a CE is agreed for a certain price the actual cost liable to the employer can be higher than the implemented value.
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### Author:  [@Jon\_Broome](https://reachback.builtintelligence.com/u/Jon_Broome)
#### Post date: [29 January 2019 07:02 UTC](https://reachback.builtintelligence.com/t/nec3-psc-compensation-events/4878/2 "2019-01-29T07:02:08Z")
Under an option E contract, the Prices is effectively a forecasting estimate of no contractual significance in terms of what the Contractor or Consultant gets paid.
Consequently, a quotation with a forecast change to the Prices is just that : a forecast. If however, it turns out to be wrong then it makes sense to revise the forecast out turn of the whole contract.
So, I am not sure if I would describe it as ‘obscure’, but you do need to stand back from the specific contract provisions to make sense of it !