If a delay is because of a late instruction from the Project Manager, does this give the contractor the right for compensation event.
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Yes, it does. There are numerous more specific compensation events listed in clause 60.1 which might give rise to a compensation event under this general heading, so you would need to be more specific in terms of finding one that fits.
Having said this, if it is a compensation event, then the Contractor would need to demonstrate effect in order for an adjustment to the Prices and Completion Date, but that is the next part of the process.
As Jon states the first step is to demonstarte that there is compensation event and secondly the Contractor needs to demonstrate in accordance with clause 61.4 that it will have an effect upon Defined Cost, Completion or meeting a Key Date.