NEC3 Short Contract: Compensation Events

A half day seminar taking place in Conference Room 1, Riddell Hall, Stranmillis Road (via glazed link to new building), on Wednesday 22 February 2012, starting at 13.30 to 16.30.

The NEC3 contracts deal with a contractor’s entitlement to additional time and money differently from the JCT standard forms of contract.  The matter is addressed under the heading of ‘compensation events’ set out at clause 6. The Short Contract includes subtle differences from the other NEC3 contracts which may catch out the unaware.


Clause 6 deals with both time and money for those matters which fall under one of the listed compensation events. Dealing with compensation events is procedurally driven and involves an approach akin to estimating a contractor’s entitlement rather than looking at his actual loss and/or expense or actual delay to completion.  In addition the Short Contract is administered by the Employer and therefore anyone undertaking the role on behalf of the Employer is acting as the Employer’s agent.


The intention of the seminar is to look at the procedure and documents used when dealing with compensation events from both a contractual and practical perspective.  Clause 6 sets out timescales within which both the Contractor and ‘contract administrator’ are to act.  It would be folly for any person responsible for the ‘administration’ of the Short Contract not to have a solid grasp of the clause 6 procedures and how they operate.  Leaving matters until completion of the works, as sometimes happens under JCT contracts, is likely to give rise to significant difficulties.



13.30                         Introduction and compensation events

14.15                         Price list, notices and records

15.00                         Break

15.15                         Procedure and quotations

15.45                         Adjustments to completion and prices

16.30                         End


Speaker Michael Dunn BSc LLB LLM FRICS FCIArb is Director of Contract Services with Rex Procter & Partners based in Bradford.   He is a visiting lecturer at Queen’s University Belfast and the University of Central England on their post graduate architecture courses, and a visiting lecturer at Leeds Metropolitan University on its MSc in Construction Law & Dispute Resolution course.  He is an RIBA Specialist Practice Consultant.


Places cost £98 including VAT per person (PSS members £82 including VAT).

Contact the RSUA for a booking form.

Payment by cheque only, made payable to Royal Society of Ulster Architects.