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0 views1 page

Notes

Uploaded by

karabo ramakgolo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Clause 61.

1 of the NEC3 Engineering and Construction Contract (ECC) refers to the


procedure for notifying a compensation event.

Here is a simplified explanation of Clause 61.1 from the NEC3 ECC:

🔹 Clause 61.1 – Notification of Compensation Events

Overview:

 The Project Manager must notify the Contractor of a compensation event at the time
that the Project Manager becomes aware that the event has occurred.
 The Contractor may also notify a compensation event if the Contractor believes one
has occurred but has not been notified by the Project Manager.

💡 What Is a Compensation Event?

A compensation event is something that happens (usually not the Contractor’s fault) which
changes the cost, time, or quality of the work, and for which the Contractor can claim
additional time or money.

Examples include:

 Changes to the Works Information by the Project Manager


 Failure by the Project Manager to give access on time
 Physical conditions that were not reasonably foreseeable

Key Points from Clause 61.1:

1. Project Manager’s duty:


o Must notify as soon as they become aware of a compensation event.
o This keeps the process proactive and avoids delays in addressing issues.
2. Contractor’s right:
o If the Contractor sees an event that should be compensated, but hasn't been
notified, they can submit their own notification.
o They must do this within 8 weeks of becoming aware (unless the event was
already notified by the PM).

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