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Foreseen or unforeseen? That is the question - how to manage compensation events under NEC4 ECC Clause 60.1(12)

Event organised by ICE

23 May 2024

This event has now ended

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The NEC4 Engineering and Construction Contract deals with unforeseen physical conditions (primarily ground conditions) under Clause 60.1(12). But there is often uncertainty about how to interpret the clause, and to assess whether a compensation event exists or not, and also how to manage them.

This presentation will provide clear guidance by a leading NEC authority as to how to interpret the clause, and to manage compensation events related to unforeseen ground conditions. 

The presentation will consider, by use of a case study, whether ground conditions encountered are unforeseeable and therefore dealt with as a compensation event under Clause 60.1(12) of the NEC4 Engineering and Construction Contract. 

The presentation will include the following:

  • The relevance of site information
  • The role of the client, the designer, the project manager and the contractor
  • How to decide if a compensation exists under Clause 60.1(12)
  • Notification of the event
  • The contractor’s quotation
  • The project manager’s reply
  • Implementation


Kelvin Hughes

Kelvin Hughes

kh consultants

contract and training consultant

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Kelvin Hughes

Kelvin Hughes is a contract and training consultant with extensive experience over 50 years with most construction contracts. He has been a leading authority on the NEC contracts since their launch 30 years ago, including 10 years as Secretary of the NEC Users Group. 

He has also advised on numerous NEC contracts, run over 2,000 training courses, and written 9 books on NEC3 and NEC4 contracts.