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There has been a breach of contract by the Employer. Is this a compensation event?

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There has been a breach of contract by the Employer. Is this a compensation event?

asked Oct 10, 2012 in Compensation Events by BuiltIntelligence (840 points)  

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A breach of contract by the Employer which is not one of the other compensation events in the contract (listed in Clause 60.1) is a compensation event (see Clause 60.1(18)).

This clause was added into the 2nd edition of the contract to capture events whereby the Contractor would haver to sue under contract law for the breach as opposed to go throught the compensation event mechanisms of the contract. This is cheaper and quicker etc.

There is also an argument for saying that this clause also applies when the Project Manager or Supervisor are acting as a agent's of the Employer.

 

answered Oct 10, 2012 by BuiltIntelligence (840 points)  
edited Oct 18, 2012 by Jon Broome