What does NEC4 clause 60.1 mean?

A compensation event is an event that is not your risk under the contract. It gets you a change to the Prices, the Completion Date or a Key Date. In plain terms, that is your contract price, your finish date or a milestone date. The list is closed. An event counts only if it fits paragraphs (1) to (20), or is an extra event written into the Contract Data under clause 60.1(21). Events your chosen options add count too. One example is a lawful suspension under Option Y(UK)2, at clause Y2.4. In the NEC4 main contract the parties are the Client and the Contractor, with a Project Manager running the contract. On an NEC subcontract, your main contractor takes the Client's and the Project Manager's part, and you take the Contractor's. Nothing in clause 60.1 pays money by itself. The money comes through the procedure that follows. You notify under clause 61.3, unless the event came from your main contractor's own instruction or decision, when it should notify. It decides under clause 61.4, and you quote under clause 62. The change to the Prices is assessed under clause 63.1. It is the effect on actual and forecast Defined Cost, the contract's measure of cost. The Fee, its percentage for overheads and profit, is added. If the procedure fails, your main contractor can make its own assessment under clause 64. The event is then implemented, meaning settled, under clause 66. The main option decides what Defined Cost is: clause 11.2(23) for Options A and B, and clause 11.2(24) for Options C, D, E and F. The Contract Data supplies the access dates, weather data, reply periods and any extra events. Two things go wrong most. Subcontractors treat any change or loss as a compensation event without matching it to a numbered paragraph. And refusals come back under clause 61.4 without saying which ground applies. Any delay to the Completion Date is assessed separately under clause 63, and that is a job for your planner.