Compensation events are those that are the employer’s risk and there are 19 main ones which will be described below. If a compensation event occurs and it is not caused by a fault of the contractor, then the contractor is compensated. In NEC3 ECC, contractors are compensated for any effect that the event has on their prices, the completion date and any key dates. Thus, the contractor gets ‘time and money’ where there is a justification.Before we look at the detail of this process, it is worth thinking about avoiding compensation events in the first place. Compensation events are not rare occurrences.
Swipe to navigate through the chapters of this book
Please log in to get access to this content
- NEC3 ECC (2013) core clauses six
- Macmillan Education UK
- Sequence number
- Chapter number
- Chapter 24