Skip to content

How does NEC4 clause 61.3 work?

The Contractor notifies an event it believes is a compensation event within eight weeks of becoming aware of it, or loses the change to the Prices, the Completion Date and any Key Date, unless the Project Manager should have notified it.

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

The answer

Clause 61.3 is the Contractor's notification and the time bar attached to it. Where the Contractor believes an event has happened or is expected to happen which is a compensation event, and the Project Manager has not notified it, the Contractor notifies the Project Manager. The notification must be given within eight weeks of the Contractor becoming aware that the event has happened. If it is not, the Contractor is not entitled to a change in the Prices, the Completion Date or a Key Date, unless the event is one the Project Manager should have notified to the Contractor and did not. That exception matters. Events which arise from an instruction or a changed decision by the Project Manager or the Supervisor are ones the Project Manager notifies, so the eight weeks bites hardest on events the Contractor discovers for itself: physical conditions, weather, late access, something the Client was to provide, or a breach by the Client. The clock runs from awareness of the event, not from the moment its cost becomes clear, and a Contractor who waits for the figures before notifying is the commonest way the entitlement is lost. The notification is a separate communication from an early warning and from the quotation; one document does not do the work of another. Three things go wrong in practice. The notice is buried in a progress report or a meeting minute rather than sent as a notification. The date of awareness is disputed because nobody recorded when the site team first saw the problem. And the event is notified as a general complaint without saying which compensation event it is. Keep a dated record of first awareness beside each notification, and check the executed contract, because amended forms change both the period and the exception.

Example

The situation

The Contractor's excavation gang breaks into an unrecorded brick culvert while digging a drain run, and the site diary records it that morning. The Contractor believes the conditions fall within compensation event 60.1(12).

What happens

  1. The eight weeks run from the day the diary records the discovery, not from the day the quantity surveyor prices the extra excavation four weeks later.
  2. A notification sent in week seven preserves the change to the Prices.
  3. The same content sent in week ten, or mentioned only in the monthly progress report, does not, unless the Project Manager should have notified the event.

The outcome

If the extra work costs the Contractor £30,000 and the notification was late, the £30,000 stays with the Contractor whatever the merits of the ground conditions themselves.

Our NEC compensation event review checks the notification record against the event chronology; the free NEC Clause 61.3 Time Bar Tracker diaries the eight weeks for every open event.