COMPENSATION EVENTS & TIME IMPACT
NEC3/NEC4 compensation events: protect your entitlement, prove your impact
Programme-led CE support for NEC3, NEC4, JCT and FIDIC contracts
NEC CLAUSE 64.1: THE COMMERCIAL RISK
If the accepted programme is not current when a compensation event arises, the Project Manager can assess the time impact using their own method. That assessment stands unless it goes to dispute. Maintaining an accepted, current programme is not administrative discipline. It is the contractual mechanism that protects your right to assess time.
Our CE programme support works inside the live update cycle, not as reactive claims support after the fact. Change log aligned to programme cycles, time impact inputs built against the accepted baseline, and submission narratives that match the programme logic.
NEC ACCREDITED
APMG QUALIFIED
P6 / MS PROJECT / ASTA
NEC / JCT / FIDIC
THREE THINGS THAT DETERMINE YOUR CE POSITION
Programme discipline is the mechanism, not the paperwork
Under NEC, the accepted programme is the instrument for time assessment. How it is maintained, or neglected, directly determines who controls the CE assessment.
- 01
The accepted programme controls the assessment
01
Without a current accepted programme at the time of a CE, the Project Manager assesses time impact using their own method under Clause 64.1. That assessment stands unless it goes to dispute. Programme discipline through delivery is what keeps that mechanism on your side.
Cl.64.1 · NEC3/NEC4
- 02
Evidence built live is harder to dispute
02
A time impact assessment built against the accepted baseline, with documented cut-offs and consistent progress rules, is substantially more defensible than one prepared after the dispute develops. Live integration of change tracking means the evidence exists when it is needed, not when it is requested.
Cl.62.2 · Programme impact
- 03
Integrated change tracking, not reactive claims
03
Most CE support is reactive. Something goes wrong, someone is instructed to prepare a claim, and the evidence is reconstructed from whatever records exist. The integrated alternative tracks change inside the live programme update cycle from the point of notification, so the evidence exists before it is needed.
Approach · Integrated, not reactive
CE integration on a live NEC3 project. On a £50M+ gas infrastructure package under NEC3 Option A, compensation events were integrated into the live programme as they arose, with traceable records maintained within the monthly Clause 32 reporting cycle through to practical completion.. View case study ›
WHY THIS MATTERS FOR CE SUPPORT
🏛
NEC Accredited Project Manager
NEC-accredited governance check on every CE programme submission. Qualification held with NEC, the contract's own accreditation framework.
📐
APMG Project Planning & Control
APMG-qualified planning and controls capability. Applied to programme quality assurance on every CE output before issue.
We assess CE programme evidence from the PM's perspective because we understand both sides of the assessment
An NEC Accredited PM understands exactly how a Project Manager evaluates a CE quotation programme under Clause 62, and how they apply Clause 64 when they assess time themselves. That knowledge is applied to every CE programme submission we prepare so submissions are structured to meet the standard, not to invite rejection.
This is not legal claims work. It is programme-led delivery support that operates inside the contract mechanism, before the dispute, not after it.
Programme-led · Not claims-led · Not legal advice
THE NEC CE PROCEDURE
Where programme support fits in the compensation event process
The NEC CE procedure has six defined stages. Programme discipline is critical at each one, but the risk concentrates at Stage 5. Select each stage to see what the contract requires, what our support delivers, and what the commercial risk is without it.
1
Early Warning
Cl.15 / 16
2
CE Notification Cl.61.1 / 61.3
3
Quotation Instruction Cl.62
4
Time Impact Programme Cl.62.2
5
PM's Assessment Cl.64.1 ⚠
6
Implementation Cl.65
Cl.15 / 16
Early Warning
Either party may raise an early warning of any matter that could increase Defined Cost, delay Completion or impair performance. The PM maintains an early warning register and can instruct a risk reduction meeting. Failure to give early warning can reduce the CE entitlement.
WHAT THE CONTRACT REQUIRES
-
Early warning obligation on both parties
-
Risk register maintained by PM
-
Contractor can lose CE entitlement for failing to give early warning where they should have done
-
Not a formal CE notification, but the earliest evidence of a potential change
COMMERCIAL RISK WITHOUT PROGRAMME DISCIPLINE
-
Without a current programme, the impact of the early warning is unquantifiable at the critical moment
-
No baseline = no reference for what the project looked like before the risk materialised
-
Programme evidence gaps at early warning stage weaken the subsequent CE submission
-
Difficult to demonstrate causal link from early warning to time impact without programme history
OUR PROGRAMME SUPPORT AT THIS STAGE
-
Current accepted programme provides the reference point for any early warning discussion
-
Programme used to demonstrate potential impact on Completion at the earliest stage
-
Contemporaneous programme record confirms the pre-event baseline
-
Early identification of activities at risk from the notified matter
ALSO APPLIES
JCT variations and extensions of time, FIDIC variations and time-related claims follow equivalent procedures. Our programme support is structured to meet the submission requirements of each contract form, not only NEC.
WHAT WE PRODUCE
Five outputs built within the programme cycle
Each output is anchored to the accepted programme and the live update cycle.
CORE OUTPUT
Change log aligned to programme cycles
A structured log that keeps CE items visible and traceable alongside programme updates. Status, key dates, agreed actions and programme impact flags, consistent every cycle, not rebuilt before submissions.
-
CE items logged with status, dates and impact flags
-
Aligned to programme data date and update cycle
-
Covers NEC CEs, JCT variations and FIDIC changes
-
Maintained across multiple cycles without drift
CORE OUTPUT
Time impact assessment programme
A programme showing the effect of the CE on planned Completion and key dates, built against the accepted baseline and consistent with the live update position. Structured to meet Clause 62.2 requirements.
-
Built against accepted programme baseline
-
Re-sequencing and time effects demonstrated through programme logic, not asserted
-
Consistent with live update cut-offs and progress rules
-
Suitable for CE quotation submission under Cl.62.2
SUBMISSION OUTPUT
Quotation narrative and submission support
A written narrative that explains what changed, what the programme effect is, the assumptions used and the resulting impact on Completion. Written to match the programme logic, not as a standalone document that diverges from the schedule.
-
Narrative matched to time impact programme
-
Assumptions, constraints and key drivers documented
-
Formatted for NEC quotation, JCT variation or FIDIC claim
-
Revision rounds included within agreed scope
GOVERNANCE OUTPUT
Baseline and cut-off discipline record
Confirmation of baseline status, data date and progress rules for the relevant period. Provides the contemporaneous programme record that makes the time impact assessment defensible and demonstrates the accepted programme was current at the time of the CE.
-
Baseline position documented at CE notification date
-
Cut-off rules and data date confirmed for the cycle
-
Update history traceable across relevant reporting periods
-
Supports PM acceptance and dispute reference if required
WHO IT'S FOR
Contractors managing change on live NEC, JCT or FIDIC projects
Useful where multiple CE items are active, the programme is updated regularly, and the team needs a consistent record of what changed, when it changed, and what it means for key dates and commercial position.
WORKS FOR
HOW IT WORKS
Set the rules, align change to the cycle, produce programme-matched outputs
Can run alongside an existing controls retainer or as a standalone CE support service. Scope confirmed in writing before any chargeable work begins.
STAGE 01
Set the rules and confirm position
Confirm the contract context (NEC3/NEC4/JCT/FIDIC), baseline status, update cadence, cut-offs and how CE items are currently logged and approved. Agree what must be shown each cycle for clean CE records.
Written scope before billing
STAGE 02
Align change to the programme cycle
CE change log aligned to programme updates. Time impact inputs structured against the accepted baseline. Baseline and cut-off discipline confirmed for each cycle so the programme record is contemporaneous and traceable.
Within live cycle
STAGE 03
Produce programme-matched outputs
Time impact assessment programme and submission narrative prepared to meet Clause 62.2 requirements, or equivalent under JCT and FIDIC. Reviewed under NEC-accredited governance against the accepted baseline and current programme position before issue.
NEC-accredited governance check
PRICING
One-off or retainer, scoped to your CE position
CE support can run as a standalone one-off (single CE or programme review) or as a retainer alongside a live controls service. Pricing reflects the number of active CEs and complexity of time impacts.
ENGAGEMENT STRUCTURE
FIXED-FEE OPTIONS
Fixed fee where scope allows, otherwise a defined upper limit. Confirmed before any chargeable work begins.
SCOPE CONFIRMED IN WRITING
Outputs, fee and timeline confirmed before chargeable work begins.
INITIAL SCOPING AT NO CHARGE
A short call to confirm fit, scope and next step.
MINIMUMS AGREED UPFRONT
Any monthly cycle or minimum period is confirmed before work starts.
NEW £
One-off CE
From £1,250
Single CE, time impact + narrative
Time impact assessment programme, submission narrative and baseline discipline check.
Review + correction
From £2,500
Multi-CE alignment
Multiple active CEs maintained alongside the programme update cycle. Narratives within the reporting rhythm.
NEW £
Integrated retainer
Scoped
CE + controls retainer
Full CE programme support integrated into an ongoing controls retainer.
LIVE
Pricing confirmed after review of current programme, baseline status and active CE count. See full pricing
FURTHER READING
Practical guidance on NEC compensation events
CLAUSE 61/62
NEC4 CE Time Bar and the CE Clock: Clauses 61 and 62 Explained
How the notification and quotation deadlines work, and what happens when they are missed.
MULTIPLE CES
NEC4 Multiple Compensation Events: Separate Assessment
Why each CE must be assessed individually and how overlapping events are handled in the programme.
EARLY WARNING
NEC Clause 15: Early Warning Register
How the early warning process relates to CE entitlement and why programme evidence matters from the first notification.
TIME RISK
Why You Need Reasonable Time Risk Allowances in NEC Contracts
How time risk allowances interact with CE assessments and why they affect your entitlement position.
FLOAT
Time Risk Allowance vs Terminal Float Under NEC
The practical difference between the two and why getting it wrong affects CE time assessment.
FIDIC VS NEC
FIDIC vs NEC: Practical Differences on Programme Reporting and Change
How the two contract forms differ on programme obligations, change mechanisms and time assessment.
Ready to protect your CE position?
Tell us the contract type, the number of active CEs and your current programme status. We will confirm the right scope and fee in writing before work begins.
Or send your current programme for a review of baseline status, accepted programme position and CE readiness, at no charge.