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NEC3 COMPENSATION EVENTS FLOWCHART

Is there a Compensation Event to be notified? NO


Contractor is not entitled to additional time or money

YES
Did it arise from Project Manager giving an instruction or changing an earlier decision?

NO
Contractor MUST notify within 8 weeks. If not, Contractor loses his rights to Time and Money. Has he notified?

YES
Project Manager should notify the Compensation Event to Contractor. Has he?

YES

NO
Contractor notifies instead

Project Manager decides if a Compensation Event has occurred

YES
Within 1 week Project Manager notifies EITHER there is no change to the Price/ Dates with reasons OR that the Price/Dates are to be changed and Contractor is to submit quotations

CCC offers a one hour free initial consultation. If you are unsure as to whether you are liable or what the next steps are, feel free to call us on 0117 925 9001 or contact us via our website www.contract-consultants.com

No change to Price / Dates

Change to Price / Dates

DISPUTE

COMPENSATION EVENT ACCEPTED

2011 Contract & Construction Consultants Limited

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