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Section 6Compensation Events

Clause 60.1(12)

CE — Physical Conditions

Purpose

The Contractor encounters physical conditions not addressed in any Baseline Statement which an experienced contractor would have judged at the Contract Date to be of such low probability that it would be unreasonable to allow for them.

Practical Application

This is the key CE for ground conditions. Two-part test: (1) not addressed in baseline, (2) low probability at Contract Date.

Common Pitfalls

If Site Information clearly describes the condition, clause 60.1(12) cannot be used. The 'experienced contractor' test is objective.

⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.