FAQs

The compensation event notification is not a communication submitted for acceptance and therefore clause 13.4 does not apply.

We are not sure what information the project manager expects but, at this stage, it is should merely be enough to decide if the event is a compensation event. It has little to do with value other than as a sense check to decide if it will have an effect upon defined cost, completion, or meeting a key date (note the ‘or’, not the ‘and’ you have used). Details of the value will come when the contractor provides the quotation, and the project manager will then have the ability to make his own assessment if he does not agree with it – see clauses 62 and 64.

If there is not enough information to enable the project manager to decide that the event is one of the compensation events listed in the contract, he should discuss it with the contractor to understand it better. If the project manager is still not satisfied then he should notify the contractor that it is not a compensation event listed in the contract and therefore the prices and so on will not change. 

At the same time, the project manager should also inform the contractor that if it still considers the matter to be a compensation event, it should submit further information to assist him.

Related Products

This website uses cookies, so that we can provide you with the best user experience.
By continuing to use this website, you are giving consent to cookies being used.
To find out more about which cookies we use and how you can manage them, please see our Cookie Policy