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Section 6— Compensation Events

Clause 60.1(15)

CE — Termination Compensation

Purpose

The Employer terminates the contract for a reason not stated in the termination clause or the termination is due to the Employer's default.

Practical Application

If the Employer terminates wrongfully or for convenience (where not permitted), the termination itself is a CE. The Contractor is entitled to compensation for lost profit and costs.

Common Pitfalls

Termination compensation as a CE is assessed differently from termination payments under clause 92. Legal advice should be sought before relying on this ground.

Related Clauses

Clause 92.1Clause 93.1

📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.

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⚠️ 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.