It's very important that any instructions are in writing, and by the Project Manager or named delegate i.e. someone who has been given permission within FastDraft to write the communication on the PM’s behalf.
The Project Manager should state whether they believe the instruction to be a compensation event or not and this process at least forces them to think about it before communicating the instruction. If they don’t believe it to be a CE or are not sure, they should say it is not one and let the Contractor notify themselves if and why they believe it to be one. The PM can then respond to that notification separately.
How to Create a Project Manager Instruction
The PM can access the PM Instruction template from either selecting the Project Manager's Instruction from the red “Create New” button at the top of the page or by selecting the blue “Create New” button from the PM Instruction Module.
How to Create a PM Instruction
Here the PM is required to select the reason within the contract the clause the instruction is being issued under. It has to be one of the reasons listed in the contract for it to be a necessary communication. There is also a requirement for the PM to state if they believe this instruction is a compensation event or not. Unless the PM is sure it is one, the response will be they do not believe it is a compensation event. If they agree it is a compensation event, there will be a separate prompt for the PM to now also notify on a separate form that this event is a compensation event and request a quotation. If the PM has stated it is a compensation event on this instruction form but not yet requested the quotation this will be picked up as an outstanding action on the right-hand toolbar.
If the PM has stated they do not believe the instruction to be a compensation event, there is nothing to stop the Contractor from notifying them-selves that it is a compensation event and why – for the PM to then accept or reject as a separate communication/process.