Frequently Asked Questions

We are a project manager using the NEC4 Engineering and Construction Contract (ECC) Option C (target cost with activity schedule). We note that in clause 61.4 the second bullet point offers up, ‘a longer period to which the Contractor has agreed,’ to the default one week. Separately, the contract data states the ‘period for reply’ for us is two weeks. Is this to be interpreted as the period within which we reply to compensation events is two weeks, or does this bullet point only relate to individual compensation events, needs to be agreed per case and, if not agreed, defaults back to one week?

Clause 13.3 will help you to understand this. Your ‘period for reply’ stated in the contract data does not apply to any specific periods for replies stated in the contract. Clause 61.4 requires you to reply to a notification of a compensation event within one week and therefore the period for reply stated in the contract data does not apply at all to this reply.

Clause 61.4 allows that the one-week period can be extended if that extension is agreed by the contractor. It does not allow agreement to a blanket extension to all notifications of compensation events, which would effectively change the contract. It only applies to each individual notification. If there is no agreement otherwise, you must reply to the contractor within one week.

Back to FAQs