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NEC4 Subcontract Compensation Event Notification Letter

Written from experience on CTRL, Crossrail and Network Rail

This NEC4 subcontract compensation event notification letter is for subcontractors working under the NEC4 Engineering and Construction Subcontract (ECS). It notifies the contractor of a compensation event under clause 61.3 of the subcontract, before the time bar applies.

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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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  • Delivered in minutes
  • Word document (.docx)
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Template

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£14.40 inc. VAT

Blank letter — 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 the ECS, the contractor administers the subcontract. There is no Project Manager between you, so the notice goes to the contractor. Like the main contract, a compensation event that is not notified in time can mean no change to your prices or dates.

When you need it

As soon as you become aware of an event that you believe is a compensation event under the subcontract: for example an instruction changing the Subcontract Scope, or the contractor or Others not working within the times shown. Do not wait until you have priced it, and keep a record of the date you sent it.

Who signs it

The subcontractor’s project manager or commercial lead.

What's inside

  • Subcontract and main contract details and references
  • A note explaining who administers the ECS and how to send the notice
  • The event, the clause 60.1 ground, the date of the event and the date you became aware of it
  • The expected effect on cost and programme, where known
  • A statement that the notice is within the period clause 61.3 of your subcontract requires
  • A request for an instruction to quote, or the contractor’s own assessment

FAQ

Is the notification period the same as in the main contract?
Not necessarily. The subcontract period may differ from the main contract, and subcontracts are often amended. Check clause 61.3 of your subcontract and its Z clauses. The contractor also needs time to notify the same event under the main contract.
Who do I send it to?
The contractor, using the communication method the Subcontract Scope requires.
Should I include a price?
Give an indicative figure if you know it. The full figure goes in your quotation once you are instructed to quote.
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 letter 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.

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