Can a Project Manager issue an instruction to proceed without an agreed quotation for an Early Warning?

We seem to be confusing processes within this question. You do not formally price an early warning, but you can be instructed to price a proposed quotation (61.2) which can then be instructed/implemented. Whether this was ever raised as an early warning is immaterial at this point – you are pricing the instructed proposed quote, not the early warning even if it was raised as one originally.

The subtlety here is around three separate processes under the contract:

Early warnings – raised to allow the Parties to discuss the potential affects of future issues and see if they can be avoided or at least minimised.

Project Managers instructions – these are not instantly compensation events, unless the Project Manager clearly state that they are one and request the quotation within the instruction. If the Contractor believes that the instruction is a compensation event then they are obliged to proceed with the works (27.3) but then should notify themselves that they believe this to be a compensation event (61.3).

Compensation Events – Project Managers can request a quotation under cause 61.1 and in the meantime the Contractor should proceed with the works. They can also request a quote under 61.2 (proposed instructions) or 62.1 (alternative quotations) which the Contractor should NOT be proceeding with, until the Project Manager has received the quote and then instructed accordingly if he wishes to proceed with this element or not.

The only recourse for a Contractor to recover additional time or cost under the contract is through a compensation event. The Contractor is not paid off the back of an early warning or even an instruction (although these may have led to the compensation event).

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