Plain English Explanation
NEC contracts allow the parties to add additional compensation events to the standard list through the Contract Data. These are bespoke CEs agreed at tender stage that are specific to the project or the Client's requirements. They supplement the standard 60.1(1) to 60.1(21) list.
Projects sometimes use this provision to include events such as: statutory undertaker delays, planning condition restrictions, specific interface risks, or other project-specific uncertainties. These additional CEs are as enforceable as the standard ones and should be treated accordingly.
Always review Contract Data Part 1 carefully at tender stage to identify any additional CEs. Price and programme for them, and ensure they are passed down appropriately in your subcontract.
Key Takeaway
Read Contract Data Part 1 line by line at tender — an additional CE you miss during bid review cannot be raised after the event, but one you identify can be negotiated, priced, and passed down into your subcontract.
What This Means for Subcontractors
Subcontractors should always check whether additional CEs have been included in the Contract Data. These may include events that specifically affect your package. Equally, push for additional CEs to be included in the subcontract for risks that are within the main contractor's control — this gives you clear entitlement if those risks materialise.
Common Risks & Disputes
- 1Contract Data not being reviewed thoroughly at tender stage, so additional CEs are missed
- 2Additional CEs being poorly drafted, making it difficult to determine when the triggering event has occurred
- 3Additional CEs not being passed down into subcontracts, leaving subcontractors without protection for project-specific risks
- 4The PM arguing an additional CE has not been triggered because the drafting is ambiguous
- 5Relying on the standard list without checking for project-specific additions
Sources
Related Clauses
Event in Client's risk as stated in the Risk Register
Risk Register events often appear alongside additional CEs in Contract Data
Client instruction to change the Scope
Scope change — additional CEs may expand the scope change triggers
A breach of contract by the Client
Client breach — additional CEs may also catch specific breach scenarios
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