We have included additional compensation events under our Z clauses. We were going to refer to these in the contract data under the optional statements heading of ‘Additional compensation events’. Unfortunately we are unable to do this as we have been advised that the June 2006 amendments to the TSC deleted ‘Additional compensation events’ from the contract data. Is this correct?
Answer
The advice you receive is correct; this was a change made in June 2006 along with other minor changes. It was felt it would be better to put these in a Z clause. So your Z clause only needs to say, ‘The following are additional compensation events….’, and then list those events. That will be sufficient. As with all additional compensation events, our advice is to make sure that the ‘trigger’ for the event occurring is clearly and objectively defined. Do not rely upon subjective judgements as they may lead to problems in interpretation.
