Civil Engineering Reference
In-Depth Information
assessment of the event is based on these assumptions. If any of them is
later found to have been wrong, the Project Manager is required to notify a
correction.
18. A breach of contract by the Employer which is not otherwise a compensation
event.
19. An event which stops the Contractor completing the works or completing the
works shown on the Accepted Programme, which neither Party could pre-
vent, which an experienced contractor would have judged at the effective date
ofthecontracttohavesuchasmallchanceofoccurringthatitwouldhave
been unreasonable for him to have allowed for it, and which is not otherwise a
compensation event. his 'prevention' category of compensation event should
be read along with clause 19.1 which requires the Project Manager to issue
an instruction if such a 'prevention' event occurs and also clause 91.7 which
allows the Employer to terminate the contract (without penalty to the Con-
tractor) if the forecast delay caused by the prevention event exceeds 13 weeks.
This compensation event is commonly amended by the Employer, for example
by restricting it to an act of prevention by the Employer. See also Sections 5.2.4
and 9.3.3.
In addition to the above compensation events, if Secondary Option Y(UK) (Hous-
ing Grants Construction and Regeneration Act 1996) is used, as it invariably will be
where the law of any part of the UK applies to the contract, then clause Y2.4 also
provides that if the Contractor exercises his rights under the 1996 Act to suspend per-
formance, this is a compensation event. his complies with section 112(3A) added by
the amendments to the 1996 Act (see Sections 10.9.2 and 10.9.3).
