PM issued CE to recharge costs

We are the Contractor in an NEC3 option A contract. The Project Manager has issued a CE to us to recoup their additional management time due to a delivery being late. We can’t argue with the late delivery but we have responded stating X7 is the only method for charging for being late. This has been responded to and rejected (we will sort that out as it is an error on their part). But due to us being late they have redirected the item to the final delivery location with them incurring additional delivery costs. My question is does this come under the same category as LD’s being the only remedy. It isn’t a category of CE so I don’t see how they can pursue this? They haven’t stated which category they consider this to fall under. Thanks

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Yes, presuming there are no key dates, if OptionX7 is included this is the predetermined (and agreed) means for the Client to recover its costs. There is no appropriate CE.