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?
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.