NEC4 Compensation Event Notification Letter (Clause 61.3)
Written from experience on CTRL, Crossrail and Network Rail
This NEC4 compensation event notification letter is the contractor’s formal notice under clause 61.3 that something has happened, or is expected to happen, that should entitle you to more time or money. It is set out so that the Project Manager can see the event, the clause it falls under and its expected effect at a glance.
See what you get →Completed except the facts only you know
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- Fills in: The letter, from the event or matter you describe, with the contract clauses set out.
- Stays [TO CONFIRM]: Contract number, Project Manager, dates and amounts.
- A competent person must review before use.
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- Word document (.docx)
Template
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Blank NEC4 notice — fill in yourself
- Word document (.docx)
- Guidance notes included
- Instant download
- Use on any project
Prices exclude VAT: UK customers pay 20% VAT; VAT is not charged for customers outside the UK.All documents are drafts. Placeholders marked [TO CONFIRM] must be completed with your details. Check it against your contract before it’s sent.
What it's for
Under NEC4, being right about a compensation event is not enough. If you do not notify it within eight weeks of becoming aware of it, you can lose the right to any change in the Prices or the Completion Date, unless it is an event the Project Manager should have notified. This letter makes sure the notice is given, on time, in a form that is hard to dispute.
When you need it
As soon as you become aware of an event you believe is a compensation event: a changed instruction, ground conditions that differ from the Site Information, late access, a client delay, or any other clause 60.1 ground. Do not wait until you have priced it.
Who signs it
It is signed by someone authorised to give contract notices for the contractor, usually the contracts manager or commercial manager. It is issued through the communication system named in the Scope, because notices sent any other way may not count.
What's inside
- Contract, project and reference details, and how the notice was issued
- A description of the event: what happened, where and when
- The clause 60.1 ground it relies on
- The date you became aware of it, to show the eight-week period was met
- The expected effect on cost and time
- A request for the Project Manager’s decision and an instruction to quote under clause 61.4
- A guidance note on the time bar and checking the Z clauses
FAQ
- What happens if the Project Manager doesn’t reply?
- The Project Manager should reply within one week, or a longer period you have agreed. If they do not, you can notify them of the failure. If they still do not reply within a further two weeks, the event is treated as accepted.
- Is an early warning the same as a compensation event notice?
- No. An early warning flags a risk. A compensation event notice claims a change to the Prices or dates. You often need both, sent separately.
- Can the eight-week period be changed?
- Some contracts amend it in the Z clauses, so check yours.
- What is [TO CONFIRM]?
- Details only you know: the contract number, the Project Manager’s name, dates and amounts. We never guess these. They appear as highlighted [TO CONFIRM] placeholders, and the NEC4 notice opens with a list of every one, so you can complete them before it’s sent.
- Can I edit the document?
- Yes. Both options are Word documents you can edit freely.
- Do I still need to review it?
- Yes. A competent person must check every document against the actual site and works before it is used. ClarusDocs gives you a complete first draft, not a substitute for that check.
Related documents
- Early Warning NoticeThe notice that flags a problem early, before it costs time or money
- Site Instruction LogLog every instruction now — so you can claim it later
- Defects RegisterTrack every notified Defect to correction — and protect your final account
- Compensation Event Quotation — Cover SheetSubmit every CE quotation complete, on time and in the right form
- Application for PaymentA clear application before every assessment date — so nothing is missed
- Completion and Take Over Request LetterAsk for Completion to be certified — and set up take over properly
Keeping this record every day? ClarusPM keeps it on a tablet on site and on the office computer. See ClarusPM →