SBD (for medium contract for construction of bridge) Section IV GCC: clause 43 Compensation Events

43. Compensation Events

43.1 The following shall be Compensation Events:

a. The Employer does not give access to a part of the Site by the Site Possession Date stated in the SCC.

b. The Employer modifies the Schedule of Other Contractors in a way that affects the work of the Contractor under the Contract.

c. The Project Manager orders a delay or does not issue Drawings, Specifications, or instructions required for execution of the Works on time.

d. The Project Manager instructs the Contractor to uncover or to carry out additional tests upon work, which is then found to have no Defects.

e. The Project Manager unreasonably does not approve a subcontract to be let.

f. Ground conditions are substantially more adverse than could reasonably have been assumed before issuance of the Letter of Acceptance from the information issued to Bidders (including the Site Investigation Reports), from information available publicly and from a visual inspection of the Site.

g. The Project Manager gives an instruction for dealing with an unforeseen condition, caused by the Employer, or additional work required for safety or other reasons.

h. Other contractors, public authorities, utilities, or the Employer do not work within the dates and other constraints stated in the Contract, and they cause delay or extra cost to the Contractor.

i. The advance payment is delayed.

j. The effects on the Contractor of any of the Employer’s Risks.

k. The Project Manager unreasonably delays issuing a Certificate of Completion.

 

43.2 If a Compensation Event would cause additional cost or would prevent the work being completed before the Intended Completion Date, the Contract Price shall be increased and/or the Intended Completion Date shall be extended. The Project Manager shall estimate and decide on the basis of facts of the events and supporting documents whether and by how much the Contract Price shall be increased and whether and by how much the Intended Completion Date shall be extended.

43.3 As soon as information demonstrating the effect of each Compensation Event upon the Contractor’s forecast cost has been provided by the Contractor, it shall be assessed by the Project Manager, and the Contract Price shall be adjusted accordingly. If the Contractor’s forecast is deemed unreasonable, the Project Manager shall adjust the Contract Price based on the Project Manager’s own forecast. The Project Manager will assume that the Contractor will react competently and promptly to the event.

43.4 The Contractor shall not be entitled to compensation to the extent that the Employer’s interests are adversely affected by the Contractor’s not having given early warning or not having cooperated with the Project Manager.