Where NEC4 costs contractors money
A compensation event notified late and time-barred. An Accepted Programme that was never actually accepted, so there is nothing to assess against. Cost disallowed because the records the contract requires were not kept. NEC4 is unusually unforgiving about process, and most of what it takes away, it takes on procedure rather than on the merits.
What this NEC4 course covers
The complete NEC4 Engineering and Construction Contract from a commercial perspective. It covers all nine core clause sections, written for quantity surveyors and commercial staff rather than lawyers.
Five fully worked examples and four applied scenarios. Most people spend twelve hours or more on it: roughly six hours reading at the pace technical contract material is actually read, plus the time to work the examples and scenarios through with a contract open beside you.
Clause references, time periods and procedural mechanics were checked against published NEC4 commentary before writing. NEC3 numbering changed in places that matter — early warning moved from clause 16 to 15, clause 10.1 split into 10.1 and 10.2, and the nineteen compensation events became twenty-one — so the references here are worth trusting more than a memory of the previous edition.
What you will be able to do
read an unfamiliar ECC quickly, starting with the Z clauses and Contract Data rather than the core clauses
identify the main option and what it changes about risk, payment, records and the Fee
run the early warning machinery, and understand what clauses 61.5 and 63.7 cost a contractor who stays quiet
operate the compensation event procedure to its deadlines — the eight-week bar at 61.3, the three and two week quotation cycle at 62.3, and deemed acceptance in both directions
build quotations that recover disruption, abortive work and time, not just the measured change
assess the effect on time against planned Completion, and understand what terminal float does to your entitlement
manage the Accepted Programme as the commercial document it is
work with the Schedule and Short Schedule of Cost Components
administer payment under any of the six main options, including a target contract share calculation
handle quality, Defects, title, insurance, termination and the dispute options
Who it is for
Quantity surveyors and commercial managers working under NEC4, contractors letting MEP packages beneath an ECC main contract, and anyone moving from JCT who has found that NEC punishes the habits JCT tolerates. No legal background assumed.
Course structure
Sixteen sections covering the whole contract.
1. Introduction to NEC4 — what it is, the family, the principles, and what changed from NEC3
2. Contract Structure and Options — core clauses, Contract Data, the Scope, Main Options A to F in detail, X and Y clauses, and Z clauses
3. Roles and Responsibilities — Client, Contractor, Project Manager, Supervisor, delegation and communications
4. The Contractor's Obligations — Providing the Works, design liability, subcontracting, instructions and Working Areas
5. Time and the Programme — access, the Accepted Programme, float, Key Dates, acceleration and take over
6. Quality, Testing and Defects — the new clause 40 quality management system, Defects, searching and acceptance
7. Early Warnings and Risk — the Register, running meetings, and the cost of silence
8. Compensation Events: The Events — all twenty-one at clause 60.1, plus option-specific events
9. Compensation Events: Procedure — time bars, deemed acceptance, proposed instructions and the Project Manager's own assessment
10. Compensation Events: Assessment — the cost schedules, the dividing date, time, risk allowances and finality
11. Payment — assessment dates, Defined Cost, the Fee, payment under each option, retention and the clause 53 final amount
12. Title, Liabilities and Insurance
13. Termination — the Termination Table, procedures and amounts due
14. Disputes — senior representatives, the Dispute Avoidance Board, W1, W2 and W3, adjudication and the tribunal
15. Running an NEC4 Job — setting up, records, the commercial calendar and the ten common failures
16. Assessment — knowledge check and four applied scenarios
Worked examples
Five, built from scratch with their own figures: a compensation event quotation showing the measured change was only 44 per cent of the recoverable total; a delay assessment showing why three weeks of preliminaries accompany one week of extension; a disputed compensation event resolved on the wording of a survey report; and an Option C share calculation where poor compensation event administration swings the outcome by around £33,000.
Curriculum
Common questions about this course
Is this a legal course?
No. It explains how the contract works commercially and where the procedures create or destroy entitlement. It does not cover case law, adjudication strategy or dispute resolution beyond noting where the contract points you.
Does it cover NEC3?
Only by way of contrast where the numbering or the mechanics changed. If you administer NEC3 contracts you will find the differences useful, but the course is written to NEC4.
Does it cover the subcontract?
The Engineering and Construction Subcontract is covered where the interface matters to a contractor letting packages — particularly the need for subcontract notification periods to be shorter than the main contract ones, which is where contractors get time-barred by their own supply chain.
How long does it take?
Most people spend twelve hours or more on it: technical contract material reads at nowhere near the pace of ordinary prose, and the five worked examples and four applied scenarios take real time to work through properly. There is no schedule and no expiry, so most people spread it across several weeks.
What about Z clauses?
The course is emphatic that almost no NEC contract is used unamended, and that Z clauses should be read first. It explains what the standard form does so you can see what an amendment has changed.
How long do I keep access?
Permanently. One payment, no subscription, and revisions are free.
Is there a refund?
Yes. Email within 14 days of buying and you will be refunded in full, no explanation needed.
Related courses
The other contract and commercial courses sit alongside this one on the courses page. This course is also included in the MEP Essentials membership.