NEC4 Compensation Event Time Bar and the CE Clock: Clauses 61 and 62 Explained

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 simple tracker, clear notices, and a repeatable quotation pack.

What Clause 61 actually does

Clause 61.3 is the key gateway. Where the Contractor is required to notify, the notification must be made within eight weeks of becoming aware of the event. If it is late, the Contractor loses the right to a change to Prices and Completion Date, subject to the wording of the exception where the Project Manager should have notified but did not.

The practical point is that you should not wait for full impact. The contract does not require you to have priced the event before you notify it. The time bar is driven by awareness of the event, not completion of analysis. In practice, your whole workflow should be designed around the NEC4 compensation event time bar and proving the awareness date.

What Clause 62 actually does

Clause 62 is the quotation and decision cycle. It sets a controlled sequence:

1. The Project Manager instructs the Contractor to submit a quotation.

2. The Contractor submits within the stated time. NEC guidance notes the standard ECC position is three weeks from instruction unless extended.

3. The Project Manager replies within the period for reply in the Contract Data, or moves to their own assessment route where the contract allows.

4. If the Project Manager fails to reply in time, Clause 62.6 provides a mechanism where the Contractor notifies the failure to reply, and if the Project Manager continues to fail to reply for two weeks after that, the quotation is treated as accepted and then implemented.

The practical point is that Clause 62 only works if you track dates and issue the right follow-up notice when a reply is late.

CE time bar - the precedent that matters in practice

A useful warning on NEC notice discipline is Northern Ireland Housing Executive v Healthy Buildings. It is an NEC3 Professional Services Contract case, not NEC4 ECC, but it is still a good reality check on how strictly the notice steps can be treated.

In the first instance decision, the court dealt with Clause 61.3 mechanics and the argument that an instruction notice amounted to a compensation event notice. The court analysed the contract language and treated the instruction and the compensation event notice as separate items.

In the Court of Appeal decision, the court considered the time bar provision and the “should have notified but did not” exception in Clause 61.3.

You do not need to cite this case in day-to-day correspondence. The practical lesson is simpler: do not assume a general email chain or instruction email is enough. If it is a contract notice, issue it clearly as a contract notice, with its own reference and attachments.

The CE clock: a simple way to run Clauses 61 and 62 without drift

The “CE clock” is an internal tracker of the dates that matter. It is not just the 8-week time bar. It is also the dates that control quotation, reply, and close-out.

If you run a CE clock properly, you get three benefits:

• You reduce time-bar risk by locking down the awareness date and notice date.

• You stop quotations sitting open with no decision.

• You build an auditable record that matches the contract sequence.

Practical workflow you can run on any NEC4 job

Step 1. Log awareness immediately

The moment an event surfaces, record:

• Awareness date

• What changed in one sentence

• The key record that proves it, such as an instruction, drawing issue, RFI response, minutes, or site record

This is internal. It protects you against later arguments about when you became aware.

Step 2. Notify early, and notify cleanly

Issue a separate compensation event notification with:

• Contract reference and CE number

• Description of the event and the event date

• The awareness date

• Document references

Keep it short. If you need more detail, put it in an attachment and list it.

Step 3. Decide the “PM should have notified” position early

Do not leave this to the end of the job. If your position is that the Project Manager should have notified, record that in your CE register, and raise it in meeting minutes so it is a live issue. That is where the exception to the time bar usually becomes a real argument, so keep the record clean.

Step 4. Build quotations using a repeatable pack

Your quotation should be easy to decide. A simple pack structure:

• Cover sheet stating the decision required and listing assumptions

• Cost build-up with supporting records

• Programme extract showing the impacted chain of logic

• Evidence index

If your pack is not decision-ready, you will often get delay and rework rather than acceptance.

Step 5. Track reply deadlines and use Clause 62.6 correctly

If the Project Manager reply deadline passes:

• Issue the “failure to reply” notice promptly

• Diary the two-week follow-up window

• Keep proof of delivery

This is a controlled mechanism in NEC. It only helps you if you follow the steps and can prove the dates.

Step 6. Close the CE properly

A CE is not finished when you receive an email saying “accepted”. Close it by:

• Updating the CE register with the final status and references

• Updating the programme and forecasts so the controls reflect the decision

• Filing the final pack, the reply, and the implementation record together

NEC4 CE Time Bar and Quotation Clock (Practical Tracker)

CE clock step	What to track
1. Trigger logged	Awareness date. One-line description. Evidence reference.
2. CE notified under Clause 61.3	Notice date. CE reference. Event date. Awareness date. Attachments list.
3. PM response to CE notice	Reply due date per Contract Data. Actual reply date. Outcome and reference.
4. Instruction to quote under Clause 62	Instruction reference. Quotation due date. Any agreed extension confirmed in writing.
5. Quotation submitted	Submission date and version. Assumptions list reference. Programme extract reference.
6. PM reply to quotation	Reply due date. Actual reply date. Decision route and reference.
7. If reply missed	Failure to reply notice date. Proof of delivery. Diary the two-week period.
8. Implement and close	Implementation reference. Programme updated reference. Register closed date.

Two short notice templates you can use for CE notification

CE Notification Template 1: Compensation event notification

Subject: Compensation Event Notification CE-0XX, Clause 61.3

We notify a compensation event under clause 61.3.

Event: [one sentence].

Event date: [date].

Date we became aware: [date].

References: [instruction, drawing, RFI, minutes reference].

Please confirm the event is a compensation event and instruct submission of a quotation, or advise your intended approach.

Template 2: Failure to reply to quotation

Subject: Failure to reply to CE quotation CE-0XX, Clause 62.6

Our quotation for CE-0XX was submitted on [date]. The period for reply has expired.

This email is notice of failure to reply. Please provide your response in accordance with the contract.

This email is notice of failure to reply. Please provide your response in accordance with the contract.

Common mistakes that cause avoidable trouble

1. Waiting for full impact before notifying. Notify the event, then price it.

2. Treating an instruction email as a CE notice. Issue a separate notice with its own reference.

3. Letting reply deadlines drift. Track the PM reply date and use Clause 62.6 steps when needed.

4. Submitting quotations that are hard to decide. Use a repeatable pack with a clear decision request and clean evidence.

References

1. NEC Contracts, “Time-barred compensation events” (FAQ). Accessed 25 February 2026.

2. NEC Contracts, “Accepting quotations in a timely manner” (FAQ). Accessed 25 February 2026.

3. NEC Contracts, “When and why NEC project managers have to assess compensation events” (news article, 28 June 2022). Accessed 25 February 2026.

4. Northern Ireland Housing Executive v Healthy Buildings Ltd [2013] NIQB 124.

5. Northern Ireland Housing Executive v Healthy Buildings (Ireland) Ltd [2014] NICA 27.

6. Brodies LLP, “Does the 8-week time limit for notification apply to all compensation events (CEs)?” (11 June 2021). Accessed 25 February 2026.

7. Fenwick Elliott, “NEC3: The time bar on compensation for contractors” (commentary). Accessed 25 February 2026.