If the Project Manager is aware something is a compensation event then they should notify that fact to the Contractor. Of course, this could be for a “negative” compensation event where they may be expecting a saving to say an instruction to omit works. It is in the Project Manager's interest to notify this and get it into the system otherwise it could be raised by Contractor several weeks or months later (and they are not time-barred on ones the Project Manager is obliged to notify – numbers 1/4/7/8/10/15/18 in clause 60.1)

Managing Project Manager compensation events

Where PM can see that an event is a compensation event then they should notify accordingly that it is one. The form requires the PM to fill in :

• Subject title.
• Compensation event type— select the appropriate compensation event clause from a drop-down list, the list will be configured for each individual contract incorporating in any Z clauses
• Project Manager Instruction (if applicable) - select from a list of Instructions that have the status “Compensation event notification to follow”
• Description of the event – a concise yet precise description of the event so that the receiver fully understands why the Project Manager believes this to be a compensation event
• Assumptions— the PM can if necessary add any assumptions for which the Contractor is to the base their quote on.