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Section 6Compensation Events

Clause 63.7

CE Assessment — Missed Early Warning Effect

Purpose

If the PM stated the Contractor missed an early warning, the CE is assessed as if the early warning had been given. This means the Contractor's recovery may be reduced.

Practical Application

The assessment assumes the Contractor would have mitigated the risk if early warning had been given. The PM can reduce the time and cost allowed accordingly.

Common Pitfalls

This reduces the CE recovery but does NOT eliminate it. The Contractor should still receive some entitlement. The reduction is at the PM's discretion based on what a reasonable contractor would have done.

📖 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.