The PM has issued a revised security spec for a door that was already manufactured, requiring the door to be re-made. The Subcontractor has made the door wrong, and therefore needs to re-make the door anyway. The Compensation Event was originally the price of a new door, but the PM now knows the door needs to be remade anyway, and only wants to pay the extra cost for the (now) relatively minor change.
Is the CE value just the uplift in component cost to meet the revised spec, rather than the cost to remake the whole door?
Andy, if the Scope has been changed requiring the door to be re-made then the CE assesses the value of remaking the door plus any delay associated with it. The cost of correcting the mistake in the original door would have been born by the subcontractor had the door not been changed but as that is no longer required the assessment of the CE is for a new door.
Also, refer to clauses 63.8 and 63.9 and remind the PM that they have a duty to be even handed, imposed upon them under clause 10.2.
Happy to discuss.
Steve, thank you for the prompt response. The full cost of the new door has been applied for. I have already accused this PM of flagrantly breaching clause 10.2, so I am anticipating an uphill battle with this CE!