Frequently Asked Questions


Under the ECC, if the contractor fails to submit a compensation event within the correct time limits, so that it is time-barred, how can you get around this if the event is genuine and payment is just?

Compensation events are not submitted, they are notified; see clauses 61.1 and 61.3 as to who is contractually responsible for notifying them.

If the contractor fails to notify a compensation event within 8 weeks of becoming aware of the event, as the contractor is supposed to, then the contractor loses all rights to any such additional time and monies – see the last sentence of clause 61.3. This is what the law calls a time bar and if it is not complied with there is no way around it, whether it is genuine, whatever that may mean, or not.

It is however important to understand that the same does not apply to compensation events that the project manager is supposed to notify; see clause 61.1. In addition, the 8 weeks starts from when the contractor was aware of the underlying event itself, not when the contactor became aware that it was a compensation event.

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