We have a compensation event time bar query. The contactor has notified a number of compensation events within the 8 week time bar stipulated within the ECC. Some of these have been rejected as they were deemed to not be compensation events given the information available at the time. Further substantiation is now available and the contractor would like to resubmit a notification of compensation event for the same issues. However, this is now outside of the 8 week period for which the contractor would have become aware of the compensation event.
How does the time bar operate in relation to resubmitted notifications of compensation events that refer to an event which had previously been notified within the correct timescales but subsequently rejected?
Answer
Your question assumes this is one of a minority of compensation events that the contractor, rather than you as project manager, is supposed to notify (see clauses 61.1 and 61.3 to define those), but that will not necessarily be the case. If, for example, this compensation event has arisen as a result of you issuing an instruction, then the time bar in clause 61.3 does not apply at all.
Once the contractor has notified the compensation event, you as project manager can only reject it for a reason set out in clause 61.4. If the contractor considers the reason is incorrect, then it should tell you and provide additional information if necessary. However, the contractor does not need to notify the compensation event again. All the contractor has to do is to provide the additional information and invite you to reconsider the decision.
If you think you have made a mistaken then you should discuss this with the contractor and agree to change your previous decision. Otherwise it is likely the employer will end up in an adjudication it will probably lose.
