Course Content:
INTRODUCTION
• Background and principles
• What is a compensation event?
• What other contractual entitlements apply?
• Common law claims
THE COMPENSATION EVENTS
• The core clauses
• The main options
• The secondary options
• Additional compensation events
• Omissions from the list
NOTIFICATION OF COMPENSATION EVENTS
• Contractual requirements and limitations
• Notifications: by the Project Manager; by the Contractor, effect of failure to notify or reply
• Conditions precedent
• Deemed acceptance and Project Manager failure
QUOTATIONS FOR COMPENSATION EVENTS
• Status of quotations, if instructed; if not instructed
• Procedure and timetable; instructions for alternative quotations; Contractor’s alternatives
• Revised quotations
• Project Manager’s assumptions
• Extending time for quotations
• Cost of preparing quotations
• Deemed acceptance and Project Manager failure
ASSESSMENT OF COMPENSATION EVENTS
• Cost of work; use of Schedule of Cost Components; use of Shorter Schedule of Cost Components ; use of Bills of Quantities; the Contractor’s fee
• Cost of Subcontracted work
• Reduction in prices
• Differences between main options
• Time; delay to completion; content of and reference to the Accepted Programme; time and risk allowances
• Failure to give early warning
• Assessing the effects of ambiguities or inconsistencies
• Project Manager’s assessments
IMPLEMENTATION OF COMPENSATION EVENTS
• Procedure and timing
• Effect of implementation
PRACTICAL EXAMPLES & PROBLEMS
• This course includes practical examples of the management and assessment of compensation events and discussion on problems frequently encountered in notices, quotations and assessments
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