NEC ECC: Novated designer changes the design - is this a compensation event?

Contractor notifies the PM under Clause 17.1 of a ambiguity in their original design. The PM responds to this by relaying it back to the Contractor’s novated design team. The novated design team advises a solution which results in an increase in Prices and the Contractor notifies a compensation event. The Project Manager rejects the notification advising the Contractor that this was not a client decision and a result of the novated design team and a risk of the Contractor. How does the Contractor approach this?

If it ws only a notated design team, then the PM would need to instruct you, the Contractor of a change to the Scope which would be a compensation event under clause 60.1(1).

However, often it is not just the design team that is notated, but also the design itself effectively making it the Contractor’s design. Hence, the change to the Scope falls under the second bullet of clause 60.1(1) and therefore not a compensation event.

But I don’t know your contract so check the wording in the Z clauses and/or where this design is referenced from … I often find it is poorly done in reality and therefore arguable.