NEC COMPENSATION EVENTS

One of the reasons to like the New Engineering Contract is the the simple and clear clause 6 (Compensation events) where the user of the contract can find all compensation events. Compensation events are:

1.The contract administrator gives an instruction changing the works information.

2.The employer does not give possession of a part of the site by the later of its possession date and the date required by the accepted programe.

3.The employer does not provide something which he is to provide by the date for providing it required by the accepted program.

4.The contract administrator gives an instruction to stop or not to start any work.

5.The employer or others do not work within the times shown on the accepted program or do not work within the conditions stated in the works information.

6.The contract administrator does not reply to a communication from the contractor within the period required by this contract.

7.The contract administrator gives an instructions for dealing with an object of value or of historical or other interest found within the site.

8.The contract administrator changes a decision which he has previously communicated to the contractor.

9.The contract administrator withholds an acceptance (other than acceptance of a quotation for acceleration or for not correcting a defect) for a reason not stated in this contract.

10.The contract administrator instructs the contrctor to search and no defect is found unless the search is needed only because the contrctor gave insufficient notice of doing work obstructing a required test or inspection.

11.A test or inspection done by the contract administrator causes unnecessary delay.

12.The contrctor encounters physical conditions which:

• are within the site,
• are not weather conditions and,
• which an experienced contractor would have judged at the contract date to have such a small chance of occurring that it would have been unreasonable for him to have allowed for them.

13.A weather measurement is recorded

• within a calendar month,
• before the completion date for the whole of the works and,
• at the place stated in the contract data

the value of which, by comparison with the weather data, is shown to occur on average less frequently than once in ten years.

14.An employer's risk event occurs.

15.The contract administrator certifies take over of a part of the works before both completion and the completion date.

16.The employer does not provide materials, facilities and samples for tests as stated in the works information.

17.The contract administrator notifies a correction to an assumption about the nature of a compensation events in this contract.

18.A breach of contract by the employer which is not one of the other compensation event in this contract.

Do you like the NEC clause 6 or prefer using the FIDIC contract clauses?