Under the X2 clause we notified (CEN) the PM of a ‘change in law’ which causes an increase to the contract costs.
The changes in the law came into effect in October 2019. The Contractor was notified of this change on May 2019 by governing body. The contractor did not notified the PM of this compensation event until in December 2019 after the event came into effect. This was not a tactic by the contractor to submit claims towards the end of the project as the project was still 1 year away from completion when the notification was officiated.
Following the Compensation Event procedure under the Contract, the contractor notified the PM that he failed to respond to the notification.
The Contractor eventually received the PM’s response to the notification after the allowable ‘period for reply’ stated in cl 61.4. The PM responses to the contractors notification ‘time bars’ the contractor - stating the contractor was made aware in March 2019 and notification was not issued until December 2019.
Can the PM apply the ‘time bar’ to the CEN- when in fact the PM is time barred cause he has failed to respond to the notification after the reminder was issued per clause 61.4? Is this not treated as accepted by the PM due to his failure to respond?