Compensation event
An NEC event assessed under the contract for effects on price, time or both; entitlement depends on its rules and facts.
by Jack Butler-Kettle · About 1 min readShare
Further detail
Read this alongside the NEC Dictionary of Terms.
Under NEC, a compensation event is assessed through the contract's change machinery. Notification, quotation and assessment have separate roles. An early warning does not necessarily notify a compensation event, and entitlement to time or money depends on the event and the applicable terms.
Preserve the instruction, notice and assessment assumptions. Our Change valuation and compensation-event quotations service supports ordinary NEC notifications and quotations. If entitlement or assessment is disputed, NEC compensation event recovery address that contested position.
Sources
- NEC Dictionary of Terms. NEC Contracts.