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Section 6Compensation Events

Clause 60.5

CE Notification — Employer

Purpose

The PM notifies the Contractor of a CE at the same time as giving an instruction or changing a decision, if the PM is aware the instruction or change will be a CE.

Practical Application

The PM should proactively identify when their actions will cause a CE and notify the Contractor immediately. This allows the Contractor to begin impact assessment promptly.

Common Pitfalls

If the PM instructs a change without notifying it as a CE, the Contractor should still notify within eight weeks of becoming aware. Do not rely on the PM's notification.

Related Clauses

📖 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.