I have a situation where the final measured quantity of an earthworks item is significantly greater than the BOQ quantity for the same item.
According to Clause 60.4 there are 2 tests that need to be satisfied for this to be a Compensation Event, namely:
1. the difference does not result from a change to the Works Information
2. the difference causes the Defined Cost per unit of quantity to change
the rate in the BOQ for the item multiplied by the final total quantity of work done is more than 0.5% of the total of the Prices at the Contract Date.
For the case in question test 1 and the second part of test 2 are satisfied.
However, given part 1 of test 2, I don't see how the Project Manager can notify a Compensation Event under this Clause and, if the Defined Cost per unit of quantity were to be reduced, why would the Contractor do so?