Compensation Events

Where multiple compensation events arise under NEC4, separate assessment is usually the safer route. This guide explains the accepted programme, the dividing date, and why one blended impact programme can weaken traceability.

Most NEC4 compensation event advice focuses on Clauses 61 and 62. The bigger commercial risk often appears later, when an NEC4 clause 64 compensation event ends up being valued by the Project Manager rather than by your quotation. That is necessary, but it is not the whole risk. Clause 64 is where many contractors lose margin quietly. The Project Manager decides to assess the CE themselves, often with less time detail, fewer allowances, and a conservative view of cost and tim

On NEC4, many CE disputes are decided by process rather than merit. The NEC4 compensation event time bar is the main risk point, and it is driven by timing and evidence, not how strong your narrative feels. Clauses 61 and 62 control that process. Clause 61 is about getting the CE into the system on time. Clause 62 is about turning it into a priced and time-assessed decision, and stopping it from drifting. This article gives a workflow you can run on live projects with a simpl

No Accepted Programme in place? You can still assess NEC4 compensation events. This practical guide shows the baseline wording, dividing date discipline, and a simple evidence pack that gets decisions.

A contractor playbook for NEC4 Compensation Events: manage the CE clock, use the right programme at the dividing date, and submit a decision pack PMs can accept quickly.

Subcontractor delay becomes the main contractor’s problem on NEC4. Seven pitfalls that weaken your position, and the programme-led controls that keep the narrative, mitigation and evidence defensible.

Contractors lose entitlement on NEC4 Compensation Events when the process is loose: missed 8-week time bar, wrong Accepted Programme at the dividing date, weak notices and quotations with no programme story. Here are 7 pitfalls and the controls that fix them.

If you are working under the NEC4 Engineering and Construction Contract (ECC), your entitlement to time on a compensation event is only as good as the way you assess it. Most contractors do not lose time because the event was weak. They lose it because the programme evidence is unclear, the “dividing date” baseline is wrong, or the delay model mixes the compensation event with unrelated project noise. The NEC approach is deliberately prospective. It is meant to keep commerci