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NEC4 Pro Forma

NEC Compensation Event Quotation Form

A blank, ready-to-complete NEC4 clause 62 quotation. Build up the change to the Prices from Defined Cost plus Fee, set out the effect on the programme, state your assumptions clearly, and submit within the three-week period.

1 · Quotation details

Project name
Full project name as stated in the subcontract
Subcontract / contract reference
Exactly as it appears in the subcontract
Quotation number
Sequential — e.g. CEQ-001
Date of quotation
DD/MM/YYYY
From — quoting party
Company, contact name and role
To — Project Manager
As named in the Contract Data
Compensation event reference
The CEN this quotation answers — e.g. CEN-002
PM instruction to quote — reference and date
Clause 61.1 / 62.1 instruction, if given

2 · The compensation event quoted for

Summary of the event and the clause 60.1 ground
Briefly restate the event and the clause it falls under — cross-reference the notification rather than repeating it in full.

Assess on forecast Defined Cost — a compensation event is assessed on the forecast effect on Defined Cost plus the Fee, not on actual cost recovered, and using the rates and percentages in the Contract Data (clauses 63.1 and 63.7).

3 · Change to the Prices — build-up of Defined Cost plus Fee

People (labour)
£ forecast Defined Cost
Equipment / plant
£
Materials
£
Subcontractors
£
Charges / preliminaries
£
Subtotal — Defined Cost
£ sum of the above
Fee (Fee percentage × Defined Cost)
£ — apply the Fee percentage from the Contract Data
Total change to the Prices
£ Defined Cost plus Fee — addition (+) or reduction (-)
How the build-up was prepared
Reference rates, quotations, the Shorter Schedule of Cost Components, and any allowance for risk (clause 63.8)

4 · Effect on Completion and Key Dates

Programme activities affected and the change to planned Completion
Show the effect on the Accepted Programme — delay to planned Completion is assessed against the programme at the date of the event (clause 63.5).
Change to the Completion Date
Working days — extension claimed
Key Date(s) affected
If any
Revised Completion Date
DD/MM/YYYY if known
Revised programme
A revised programme is attached
Not required for this quotation

5 · Assumptions and exclusions

Assumptions this quotation is based on
State assumptions clearly — if the PM stated assumptions under clause 61.6, list them. A later correction of a stated assumption is itself a compensation event.
Exclusions
Anything expressly not covered by this quotation

6 · Quotation summary

Total change to the Prices
£ from section 3 — addition (+) or reduction (-)
Total change to the Completion Date
Working days from section 4
Quotation submitted within three weeks of being instructed to quote (clause 62.3)
More than one quotation is provided for different ways of dealing with the event (clause 62.1)
Details of the assessment are attached

7 · Supporting records attached

Cost build-up
Quotations / rates
Programme extract
Site diaries
Correspondence
Other (list below)
Records list
Itemise the records relied on to support the build-up

8 · Submitted by

Signed
Name and position
Date
DD/MM/YYYY

9 · Project Manager response (clause 62.3 — reply within two weeks)

Quotation accepted
A revised quotation is instructed — reasons given
The PM will make their own assessment (clause 64)
PM name
PM signature
Date of reply
DD/MM/YYYY

How to use this form

  1. 1

    Complete section 1 and cross-reference the compensation event notification this quotation answers, plus any PM instruction to quote.

  2. 2

    Build up the change to the Prices in section 3 from forecast Defined Cost plus the Fee, using the rates and percentages in the Contract Data — not the actual cost you expect to recover.

  3. 3

    Set out the programme effect in section 4 against the Accepted Programme at the date of the event, and attach a revised programme where the event changes planned Completion.

  4. 4

    State your assumptions clearly in section 5 — if a stated assumption later proves wrong, the correction is itself a new compensation event.

  5. 5

    Submit within three weeks of being instructed to quote (clause 62.3), keep proof of submission, and chase the PM's reply — which is also due within two weeks.

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Related guides

The Complete Subcontractor Contract Review ChecklistLiquidated Damages: What Subcontractors Need to KnowScope Gaps in Subcontracts: How to Spot and Protect YourselfPay-Less Notices Explained for Subcontractors

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