Avoiding Compensation Event Underpayment Under NEC3 – A Practical Approach

Module Ref: A6c

Duration: 1/2 day

Delegates who wish to attend this workshop should either have attended an A6 New Engineering Contract course or is currently or was previously fulfilling the role of project QS or similar where the NEC3 Engineering and Construction Contract is in use.


To understand the process of quantification and quotation. To know what appropriate commercial information is required. To prepare quotations for compensation events.


  • The structure of a compensation event
  • Entitlement; cost, rates or lump sums
  • Components of the quotation
  • Quotation build-up
  • Quantification under the main options
  • Application of the Schedule of Cost Components
  • Submission of quotations
  • Project manager’s assessments

Teaching Outcomes

At the end of the workshop, delegates should understand:

  • The responsibility of the contractor
  • The differing mechanisms for valuing compensation events under the main options
  • Linkage of early warnings, risk register, quotations and compensation events
  • The inclusion of risk, delay and disruption in quotations
  • How to apply NEC3 ECC in practice to avoid compensation event under-payments

This course is recommended for all involved in securing payment under NEC3 ECC, particularly contractors and their supply chain.

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