Purpose

Following the conflict in the middle east, there was an immediate impact on fuel costs for the Contractor. The NEC4 Term Service Contract includes a Compensation Event clause that excludes events that neither party could prevent, and that an experienced contractor would have judged to have such a small chance of occurring that it would have been unreasonable to allow for them. The invasion in Iran falls into this category, and the Contractor provided an early warning to HBC of a potential impact.

Fuel price records provided by the contractor, together with delivery notes to the work site, have been inspected to validate the claim value of £9,503.10.

Decision

The additional fuel costs in March 2026 were accepted for payment.