The Compensation Event (CE) procedure at core clause 6 is where any ‘changes’ to the baseline scope are dealt with, commencing with an instruction by the Project Manager (PM) to change the Works Information under clause 14.3.
The intent of the CE procedure is that the assessment of cost and time are made soon after the instruction has been given so that you ‘agree’ the effects, which are then formally implemented.
Where there are areas of uncertainty then the PM can make assumptions about the works which may lead to a further CE where this assumption is incorrect. This could mean, for example, that the works will take a gang of 4 men 8 weeks to complete. In this instance the ‘cost’ could be based on a daywork type approach, although bear in mind that there are obligations for the Contractor to react competently and promptly and that any Defined Cost is reasonably incurred.
For timeframes, the PM instructs a change to the baseline scope and notifies a CE at the same time, clause 61.1, instructing the Contractor to submit a quotation, clause 61.2. The Contractor submits a quotation within 3 weeks of the PM’s instruction, clause 62.3. The PM then, within 2 weeks. either; accepts the quotation, instructs a revised quotation or notifies that the PM will be making their own assessment, clause 62.3.