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Follow the signed contract route. Instruction and scope: Event and contract clause; Notice requirements: Notice and response process; Valuation rules: Cost and programme basis. The form, option and amendments decide the process.
QSEC insight

Is This A Variation Or A Compensation Event?

A variation and an NEC compensation event can both affect price, but they use different steps. Check the signed form before choosing the notice, cost and programme process.

A variation and an NEC compensation event can both affect price, but they use different steps. Check the signed form before choosing the notice, cost and programme process.

Do your change records follow the form actually signed for this job?

Follow the signed contract route. Instruction and scope: Event and contract clause; Notice requirements: Notice and response process; Valuation rules: Cost and programme basis. The form, option and amendments decide the process.
The form, option and amendments decide the process.

Variation Vs Compensation Event: Check The Event

Read the form and version for the work you hold. The main contract and subcontract may use their own rules on the same site.

An NEC event can cover more than a scope change. Read the event list and link it to the facts before choosing the route.

Read the named roles too. A site request may need a formal step from the person who has the right to instruct the work.

Use The Cost Basis In The Terms

A variation may use existing, changed or new rates. An NEC event may use actual and forecast Defined Cost, with the right schedule and dividing date.

Defined Cost has a set meaning in the terms; it is not simply the bills paid. Check the Fee and time effect too, rather than wait to price the event as a final account.

The event is the same. Does the contract require a different route or valuation basis?

Use the process in your own contract
  1. Identify the form

    Check the signed contract and changes.

  2. Follow its route

    Use the required event and notice steps.

  3. Price on its basis

    Apply that form’s cost and time rules.

QSEC · Use these checks with the facts and terms of your job.

Read the signed form and amendments before choosing the notice and pricing process.

Track Each Step

Record who must give notice, when the quote is due and how a reply is made. Keep the cost and programme files linked.

An early warning does not replace an event notice. Nor does an instruction agree time and cost at once. Check the rules for an event already put in place before trying to revise it.

General guidance. Check your signed contract and the job facts. Get legal advice where needed.

General guidance This article is not project-specific contractual or legal advice. Review the signed contract and facts before acting.

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