The Project Manager is assessing Compensation Event Quotations submitted by the Contractor on the basis that Early Warnings were not given after the Notification of Compensation (NCE) was raised.
As an example, the Contractor encountered unforeseen ground conditions when piling which prevented piles being driven into the ground. The Contractor raised an NCE describing the issue but proceeded to investigate the reasons why it had encountered the issue which involved a mixture of hand-digging and bringing in heavier plant to excavate the ground. These additional works solved the issue so the piling operation could continue however, this all came at additional cost.
The Project Manager’s view is that because they were not informed via an Early Warning of the hand-digging / heavier plant they had no ability to challenge the additional cost early on and therefore they would seek to remove that cost from the compensation event quotation.
Another example of this principle being applied is a delay event. An NCE was raised highlighting there had been a delay to the works due to an Employer’s risk, the Project Manager is unhappy about certain costs claiming they were not made aware of them specifically leading them to take the view that an Early Warning should have been given.
Is the Contractor required to inform the Project Manager of the impacts of a Compensation Events via Early Warnings after the Notification of a Compensation Event has been raised ?