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What does NEC4 clause 60.1(10) mean?

It is a compensation event when the Supervisor instructs the Contractor to search for a Defect and no Defect is found, unless the search was needed only because the Contractor gave insufficient notice of work obstructing a required test or inspection.

Updated: 15 September 2026. By Jack Butler-Kettle, Quantity Surveyor & Claims Consultant.

The answer

Clause 60.1(10) allocates the cost of a fruitless search. The event is that the Supervisor instructs the Contractor to search for a Defect and no Defect is found. It has one exception: the search was needed only because the Contractor gave insufficient notice of doing work that obstructed a required test or inspection, in which case the Contractor pays for the search whatever it finds. If the Supervisor's suspicion was wrong the Client pays for testing it; if the Contractor covered up work the Supervisor was entitled to inspect, the Contractor pays for uncovering it. To bring an event within the paragraph the Contractor shows the Supervisor's instruction to search, what the search involved, and the outcome recorded by the Supervisor showing no Defect; where a Defect was found in part of the search, only the part where none was found is within the paragraph. It should also show it gave the notice the Scope required before covering the work, because the exception turns on that. The event arises from the Supervisor's instruction, so the Project Manager notifies it, but the outcome is not known until the search is complete, so in practice the Contractor should notify under clause 61.3 as soon as the search is closed with nothing found rather than rely on the Project Manager. The change to the Prices is assessed under clause 63.1 as the effect of the instruction on the actual Defined Cost of work done by the date of the instruction and the forecast Defined Cost of work not yet done, plus the Fee: opening up, testing, making good and standing time. What most often goes wrong is that the Supervisor's record of the outcome is not obtained, so a later argument arises about whether something minor found during the search was a Defect. Any delay to the Completion Date is assessed separately under clause 63 by the programming expert.

Example

The situation

A drylining contractor has boarded and skimmed the ceilings on a floor, having given the notice the Scope requires before closing them. The Supervisor, suspecting missing fire stopping above, instructs the contractor to open up 14 locations.

What happens

  1. Each location is cut and inspected with the Supervisor present, found to be correctly fire stopped, and the Supervisor's record says so.
  2. The Project Manager notifies the compensation event, or if it does not, the contractor notifies under clause 61.3 as soon as the last location is closed.
  3. The quotation assesses under clause 63.1 the Defined Cost of cutting, inspecting, reboarding, skimming and redecorating the 14 locations at £3,100, and adds the Fee at the fee percentage in the Contract Data.

The outcome

Because the contractor gave proper notice before covering the work, the exception does not apply and the Project Manager has no ground under clause 61.4 to refuse the change.