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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECC: Responding to Compensation Events

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The answer to your first part is no the Employer can not do this. They cant just "issue a compensation event" - as what reason within clause 60.1 can they tag it to? They can't. That means I don't need to answer the second part as it is not valid. If that is a compensation event between them and the Employer, this does not instantly transfer across to the main Contractor.

The Employer can only recover this cost from the Contractor if that contract between the Contractor and the Employer allows them to. Had they defined certain works to be done by a defined Key Date that they miss and the Employer incurs cost from a subcontractor as a result, then that would be recoverable through 25.3 (but his is not via a CE).

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