A design and build Contractor has notified a compensation event for unfavorable ground conditions on revised route of proposed pipeline. Are they due compensation or are they owners of all risk associated with design changes?
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The same rules apply . If the Contractor submits a proposed design change that is accepted by the Project Manager and then they experience ground conditions that “would have had such a small chance of occurring that it would have been unreasonable to have allowed for it” then the compensation event would still apply. Equally if they experience weather in excess of a 1 in 10 event they would still be able to claim a compensation event for that as well. They are not suddenly the owners of all risk just because they proposed a change that was accepted.