Step 1: Compensation Events
Clause 43.1 of the Conditions of Contract sets what are referred to as “Compensation Events”. As per Cl 43.2, if a Compensation Event occurs and would cause additional cost or would prevent the work being completed before the Intended Completion Date, the Contractor is to be compensated and the time to complete extended, as per the Project Manager’s determination., but based on the Contractor’s submission, for detail
refer▬►PPMO: SBD for Bridge, GCC Clouse 43.1 & 2: Compensation Events.
43. Compensation Events
43.1 The following shall be Compensation Events:
- The Employer does not give access to a part of the Site by the Site Possession Date stated in the SCC.
- The Employer modifies the Schedule of Other Contractors in a way that affects the work of the Contractor under the Contract.
- The Project Manager orders a delay or does not issue Drawings, Specifications, or instructions required for execution of the Works on time.
- The Project Manager instructs the Contractor to uncover or to carry out additional tests upon work, which is then found to have no Defects.
- The Project Manager unreasonably does not approve a subcontract to be let.
- 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.
- 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.
- 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.
- The advance payment is delayed.
- The effects on the Contractor of any of the Employer’s Risks.
- 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.