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What does NEC4 clause 60.1(6) mean?

It is a compensation event when the Project Manager or the Supervisor does not reply to a communication from the Contractor within the period the contract requires for that reply.

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

The answer

Clause 60.1(6) gives teeth to the contract's reply periods. The event is that the Project Manager or the Supervisor does not reply to a communication within the period required by the contract. The contract requires replies to many communications, and the period is either the general period for reply stated in the Contract Data or the specific period a clause gives, such as the two weeks the Project Manager has under clause 62.3 to reply to a quotation. The paragraph is about a reply that is late or absent, not a reply the Contractor dislikes; a reply within the period that refuses acceptance is dealt with, if at all, under clause 60.1(9). To rely on the paragraph the Contractor shows the communication it sent, that the contract required a reply to it, the period that applied, when that period ended and that no reply was received by then. The Contractor notifies the event under clause 61.3 within eight weeks of becoming aware, which is the day after the reply period expired, not the day the late reply arrives. Several late replies have their own remedy, such as the treated acceptance of a quotation under clause 62.6 once the Contractor has notified the failure, and the compensation event covers the cost effect those mechanisms do not. The change to the Prices is assessed under clause 63.1 as the effect of the late reply on actual Defined Cost by the date of the notification and forecast Defined Cost afterwards, plus the Fee, in practice the cost of work held while the reply was awaited. What most often goes wrong is that the Contractor cannot show when its communication was received, or the cost claimed was incurred before the period expired and would have arisen anyway. Any delay to the Completion Date is assessed separately under clause 63 by the programming expert.

Example

The situation

A cladding contractor submits its bracket design to the Project Manager for acceptance, and the contract requires a reply within the period for reply stated in the Contract Data. The period expires and the reply arrives 16 days after it.

What happens

  1. The contractor cannot release the brackets for fabrication until the design is accepted, so the fabricator's slot is lost and the brackets are made in a later, more expensive batch with a premium delivery.
  2. The contractor notifies the compensation event under clause 61.3 on the day after the reply period expired and gives an early warning of the fabrication effect at the same time.
  3. The quotation assesses under clause 63.1 the additional fabrication and delivery Defined Cost of £7,900 that the late reply caused.
  4. With a fee percentage of 9 per cent, a Fee of £711 is added, so the proposed change to the Prices is £8,611.

The quotation

ItemAmount
Additional fabrication and delivery Defined Cost£7,900
Fee at 9 per cent£711
Proposed change to the Prices£8,611

The outcome

The proposed change to the Prices is £8,611, built from the Defined Cost the late reply caused plus the Fee, with any effect on the Completion Date shown on the programme.