6.: Compensation Events

This chapter explains what constitutes a compensation event. It describes the process for notifying, assessing and accepting compensation events and explains the consequences if the Contractor or the Project Manager fail to follow the process. It sets out how a compensation event is assessed, what should be included in a quotation for a compensation event and the process for submission of a quotation by the Contractor and acceptance by the Project Manager. It explains the significance of Defined Cost and the dividing date when assessing a compensation event and identifies entitlement when assumptions are stated by the Project Manager, amounts for risk are included in the assessment and when the Contractor proposes a change to the Scope.