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Answered: NEC PSC: Compensation events only for budget purposes under option E?

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What the other question/answer would have been pointing out is that under option E, as the Consultant is paid actual defined cost anyway, that the compensation event quotations are only really to give the Employer/Client an idea where their cost liability is going. What ever the quotation amount of the CE is, is the Consultant will end up being paid the cost they can prove they have incurred. This might end up being more or less than the quotation. The only financial risk to the Consultant will be falling foul of any cost that would be considered "dis-allowable" under the disallowed cost definition.

What the CE quotation does define however is any time entitlement in moving the Completion Date and or any Sectional Completion (or Key Dates). This is agreed as part of the quotation and the Consultant can still be liable for delay damages if they miss the Completion Date or Sectional Completion Date so important that this element is considered in each quotation.

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