Case 01
Disruption Without Delay
- Disruption
- Defined Cost
- Productivity
The commercial question
“No planned Completion delay. Does that mean there is no additional cost?”
Illustrative scenarios
These are independently created fictional scenarios for professional learning. Figures and conclusions are illustrative, not project-specific assessments or standard rates.
Project scenario
NEC4 ECC Option A
A six-person installation gang is installing a 1,000m service route. The original plan was 20 working days at an average of 50m per day.
A PM Scope change fragments the planned sequence. The gang now has to return to completed areas, repeat setup activities, move small plant more frequently and install additional temporary protection.
The operation is forecast to take 26 working days. Planned Completion remains unchanged.
The direct cost of the changed Scope is being assessed separately.
Contractor position
The Contractor submits a disruption quotation of:
£29,100
- Additional gang time
- Small plant
- Repeated mobilisation / setup
- Temporary protection
- Site supervision / management
- A separate productivity allowance
What would you challenge first?
No delay to planned Completion does not automatically mean the cost effect is zero.
Existing site resources require a demonstrated causal cost effect.
Additional labour/resource time and a separate productivity allowance may overlap.
Tender productivity should not automatically become the CE valuation basis.
Key commercial principle
Key commercial principle
“Disruption can create a cost effect without delaying planned Completion.”
Commercial Desk headline diagnosis
Commercial Desk headline diagnosis
Further commercial review required.
The absence of delay to planned Completion does not by itself mean the cost effect is zero. The submission needs to demonstrate the forecast change in Defined Cost caused by the Compensation Event and avoid duplication between resource and productivity effects.
One Compensation Event may create multiple effects — direct changed work, labour and resource effects, plant, disruption, resequencing, temporary works, programme delay and prolongation. Those effects are not automatically separate Compensation Events.
How the conceptual comparison works
Without CE
Raw resource / cost position → Applicable SCC / SSCC rules → Without-CE Defined Cost
With CE
Raw resource / cost position → Applicable SCC / SSCC rules → With-CE Defined Cost
Identify the CE-caused Defined Cost effect, then apply the applicable Fee treatment.
See the Worked Commercial Solution
Full Worked Solution
Part of the upcoming NEC4 Compensation Events Pack.
The Pack includes:
- Cases 01–06 full Worked Solutions
- Main Option A–F impact analysis (not six recalculated versions of each Case)
- Advanced Option B/D Quantity-change Module where applicable
- Structured evidence and commercial assessment guidance
- Example response wording
Planned launch price: £79 one-off. No subscription. Coming soon.
Based on the standard NEC4 ECC framework. Always check the applicable Contract Data, secondary Options, Y clauses, Z clauses, local amendments and governing law before applying the worked examples to a live contract.
Related Commercial Desk tools
Commercial Desk is an independent practical reference for construction professionals. It is not affiliated with or endorsed by NEC. It does not reproduce the NEC4 contract and is not a substitute for the applicable executed contract or professional or legal advice. Always check the relevant contract, Contract Data and amendments.