NEC4 ECC Time of Event definition

NEC3 and NEC4 Contracts
1

Hi, in NEC 4, am I right in the definition of the time of event below? I understant that the latest monthly update of the accepted programme at the time of event will be used as the baseline in assessing a compensation event (CE). THANK YOU!

  1. For issuance of revised drawings that will impact the works in the future, the time of the event is when the PM issued the drawings or when the PM request for quoations?

  2. For completed activities with a compensation event, the time of the event is when the commencement of the compensation event or when the Contractor notified a CE or when the PM request for quotation?

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2

The occurrence of a compensation event is when it actually happens. It might not be formally recognised as a compensation event at that time, however, as the notification procedure frequently occurs afterwards. That is why assessments are made based on both actual and forecast effects.

It looks like you are trying to define the ‘dividing date’ of the CE which is determined in accordance with sub-clause 63.1. This is not the point when the effect of the CE is assessed, however, which should relate to when the CE actually happened, otherwise there may be time and cost effects which have already occurred that would not be included within an assessment.

For an assessment of time, sub-clause 63.5 was the cause of some confusion when NEC4 was first published and was included in a formal amendment in January 2019. See also the NEC Practice Note ‘Assessing delays due to compensation events’, which provides guidance on the assessment process.