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60.1(12)

Physical conditions within the Site not weather

Reviewed by LazyQS Editorial·Last reviewed: 2026-02-19

Plain English Explanation

This CE arises when the Contractor encounters physical conditions within the Site — things encountered in or on the ground — that an experienced contractor would have judged, at the Contract Date, to have such a small chance of occurring that it would have been unreasonable to have allowed for them.

In plain terms: if you encounter ground conditions, buried obstructions, contamination, or other physical site issues that go beyond what a reasonable contractor would have anticipated from the site investigation data available, this is a CE. The test is objective — based on what an experienced contractor would have expected, not what you personally expected.

This is one of the most commercially significant CEs in ground-engineering, civil, and basement-level works. It can recover substantial additional cost where the ground is materially different from what was shown in site investigation reports.

Key Takeaway

The test is objective — what would an experienced contractor have allowed for from the site investigation data available at tender? If conditions are materially worse, notify promptly and start recording costs from day one of the encounter.

What This Means for Subcontractors

For groundworkers, civils subcontractors, and piling specialists, this CE is critical. Before pricing, review all site investigation data, borehole logs, and the Risk Register carefully. If conditions encountered are materially worse than the data indicated, notify a CE promptly. Courts and adjudicators take the test of 'what an experienced contractor would have allowed for' seriously.

Common Risks & Disputes

  • 1Insufficient site investigation data being provided — the less data there is, the harder the 'experienced contractor' test is to pass
  • 2The PM arguing that the conditions were foreseeable from the available data
  • 3Delay in notifying the CE while waiting for the extent of the problem to become clear
  • 4Inadequate records of what was found, when, and at what depth or location
  • 5Contamination or utilities not being covered by this CE (check whether the Scope specifically allocates these risks)

Sources

  1. NEC4 ECC Clause 60.1(12)NEC4 ECC
  2. RICS Guidance Note: Ground Conditions and Compensation Events Under NECRICS
  3. Fenwick Elliott: Unforeseen Physical Conditions Under NEC4 — The Experienced Contractor TestFenwick Elliott
  4. Society of Construction Law: Ground Risk Allocation in Construction ContractsSCL

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