Clause 13.7 - CE Notification within PMI

As PM & QS on our current scheme, we have been notifying Compensation Events within PMI’s using the following wording;

As Project Manager, I instruct the Contractor in accordance with clause 14.3, to carry out the following change to the Works Information;
xxxx
I also notify the Contractor that this is a compensation event in accordance with clause 60.1 (1) and 61.1.

Please ensure that your quotation relating to the above is issued within 2 weeks as per clause 62.3 and as per clause 62.2 comprising of proposed changes to the Prices and any delay to the Completion Date and Key Dates assessed by the Contractor.

The Contractor has failed to respond to any of these to date (ll time barred) and is stating the reason for this is that each CE should be notified seperately from the PMI in accordance with 13.7.

My previous understanding was that 13.7 is intended to ensure CE’s are not lost in general communications involving oter matters, not to prevent succinct management of change as I believe we have employed to date, by clear and unambiguous CE notification within the body of a PMI.

Thoughts very much welcome.

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Keiran, clause 13.7 does require all notifications to be communicated separate to other communications but, does that mean that if you do not follow that rule, you haven’t notified? The answer is possibly but an adjudicator might not ignore the fact that the Contractor acknowledges that they did receive your communication. I think it would be very difficult for the Contractor to claim that they have not been notified when they are clearly corresponding with you, their’s is a very technical point about the nuances of clause 13.7 but that is not really the issue here.
The problem the Contractor has is the fact that they are in breach of clause 27.3, having been instructed to submit a quotation, clearly they should obey the instruction given to them by the PM and get on with submitting the quotation. The fact that the notification has not been communicated properly makes no difference. By the way I assume your reference to 2 weeks under 62.3 means there is an amendment, otherwise the published contract gives the Contractor 3 weeks to submit the quotation.
If the Contractor has not submitted the quotation within the time allowed the PM is required under clause 64.1 to make the assessment of the compensation event, the PM’s time for making the assessment begins when the need becomes apparent - see clause 64.3. If you are looking for a way to resolve this and avoid conflict, you could agree to extend the time for the quotation provided the extension is agreed before the original time for submitting the quotation has not expired, if it has expired then there is no discretion for the PM, they must make the assessment. Good Luck.

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