The PM accepted a positive CE for Contractor proposed change to the WI. Can he then reject the Contracror's quotation?

Thanks for your response. To clarify, this is an Option C contract and as the effect of the notification and subsequent quotation is not to reduce the prices clause 63.11 does not apply here in my opinion.

My contention is that as per clause 60.1(1) a contractor proposed change in the WI if accepted does not constitute a CE except where clause 63.11 applies. In addition, this particular event does not fall under clause 80.1 in the contract and the Schedule of Employer’s Risks. Therefore my position is that the Notification of Compensation Event by the Contractor and its acceptance by the PM are acts not in accordance with the contract (clause 10.1) and should be set aside nullified.

I would be grateful for your opinion. Many thanks.

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I would not say that the raising of the CE and acceptance that it is is one can ever simply be “nullified” by quoting clause 10.1 However, you can still follow the contract to close this out. If I as the PM accept that it something is a compensation event and request a quote, but then realize one week later that I was wrong to do so then I would simply notify a change of decision. A change in decision in itself is a reason for a compensation event - but there would be nothing to price against it.

It is however a different story once the event is “implemented” as a compensation event can not lower the Prices except as stated within the contract - so the PM would be too late here. (all be it if the Contractor does not incur the cost then the value will be shared as “gainshare”).