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What does NEC4 clause 60.1(4) mean?

It makes an instruction to stop work, not to start work, or to change a Key Date a compensation event.

Updated: . By Jack Butler-Kettle, Construction Claims Consultant.

The answer

A Key Date is a milestone date in the contract. In the NEC4 main contract the instruction comes from the Project Manager or the Supervisor. On an NEC subcontract it comes from your main contractor. The clause does not ask why the stop was ordered. A stop for your main contractor's convenience, or to allow a survey, counts on its face. The check on stops you caused comes at clause 61.4: there is no change if the event came from your own fault. To rely on the clause, show the instruction and who gave it. Then show what work it stopped or held back, or which Key Date it moved, and when work could restart. Because the event comes from an instruction, your main contractor should notify it when it gives the instruction. If it does not, you notify under clause 61.3, and the 8-week bar does not apply. The change to the Prices, your contract price, is assessed under clause 63.1. It is the effect of the stop on actual Defined Cost for work done by the date of the instruction. Add forecast Defined Cost for work still to do, plus the Fee. For a stop, that normally means standing people and equipment, demobilising and remobilising, and protecting part-finished work. For a Key Date brought forward, it means the extra resources to go faster. Two things go wrong most. A verbal stop on site is never confirmed in writing, so its start date is disputed. Or you keep a full gang standing when the instruction plainly let people be moved, and the assessment is made on that basis. Any delay to the Completion Date is assessed separately under clause 63, and that is a job for your planner.

Example

Illustrative example. The scenario and figures are invented.

The facts

A brickwork subcontractor on an Option A subcontract is told by the main contractor to stop work on the lift shaft walls. A structural engineer is reviewing a movement joint. Work restarts 17 working days later.

What happens

  1. The instruction is confirmed in writing the same day, and the event is notified with it.
  2. Part of the bricklaying gang is moved to the external walls.
  3. The quotation assesses only the resources truly standing, under clause 63.1: the shaft hoist, the loading tower and two operatives who could not be moved. At £1,920 a day for 17 days, that is £32,640.
  4. With a fee percentage of 5 per cent, the Fee is £1,632 and the proposed change to the Prices is £34,272.
  5. The quotation records the move of the gang, so the main contractor can see the standing cost was kept down. It shows the programme effect separately.

The quotation in figures

ItemAmount
Standing resources a day£1,920
Standing resources for 17 days£32,640
Fee at 5 per cent£1,632
Proposed change to the Prices£34,272

The outcome

The proposed change to the Prices is £34,272 for the 17 days, with the standing cost kept down by moving the gang and the programme effect shown separately.

To have a refused event tested against the clause it falls under and pressed to implementation, see our Compensation Event Claim service.