Source: https://www.quantsurv.com/library/glossary/compensation-event
Content format: Markdown version of the public page.
Content reviewed: 2026-10-10

# 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](<https://www.quantsurv.com/about#jack-butler-kettle>) · About 1 min readShare

## Further detail

Read this alongside [the NEC Dictionary of Terms](<https://www.neccontract.com/resources/dictionary>).

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](<https://www.quantsurv.com/quantity-surveying?service=%2Fquantity-surveying%2Fvariations-compensation-events#client-types>) service supports ordinary NEC notifications and quotations. If entitlement or assessment is disputed, [NEC compensation event recovery](<https://www.quantsurv.com/claims?service=%2Fcompensation-events%2Fservices%2Fcompensation-event-recovery#client-types>) address that contested position.

## Sources

1.  [NEC Dictionary of Terms](<https://www.neccontract.com/resources/dictionary>). NEC Contracts.

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