# How is a compensation event assessed if the Contractor fails to give an early warning?

**URL:** <https://reachback.builtintelligence.com/t/how-is-a-compensation-event-assessed-if-the-contractor-fails-to-give-an-early-warning/120>\
**Category:** Compensation Events\
**Created:** [9 October 2012 20:23 UTC](https://reachback.builtintelligence.com/t/how-is-a-compensation-event-assessed-if-the-contractor-fails-to-give-an-early-warning/120 "2012-10-09T20:23:37Z")\
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**Author:** ![BuiltIntelligence](https://avatars.discourse-cdn.com/v4/letter/b/919ad9/32.png) [@BuiltIntelligence](https://reachback.builtintelligence.com/u/BuiltIntelligence)\
**Post date:** [9 October 2012 20:24 UTC](https://reachback.builtintelligence.com/t/how-is-a-compensation-event-assessed-if-the-contractor-fails-to-give-an-early-warning/120/2 "2012-10-09T20:24:09Z")

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The Contractor has a duty to give an early warning (as stated in Clause 16.1) as it is possible that early warning could have allowed actions to be taken which would have reduced costs and saved time. If the Project Manager has notified the Contractor of his decision that the Contractor did not give an early warning of a compensation event which an experienced contractor could have given (Clause 61.5), the event is assessed as if the Contractor had given an early warning (see clause 63.5).

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