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Answered: NEC 3 Option A - Neither party operated CE procedure properly

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It would depend on what the compensation event was for, which determines whether it is the Contractor or Project Manager who should have notified the matter as a compensation event.

If the Contractor, then the 'time bar' issue would apply under clause 61.3.  If the PM then it is still a CE even though it has not been notified.  Although the Contractor should have then notified the matter, the 'time bar' provisions do not apply.  The situation effectively remains 'dormant' until either the PM or Contractor notify the matter and commence the procedure under core clause 6 for instructing quotations etc.

The rights from a compensation event are detailed under clause 63.4, so the situation you describe highlights the importance of administering the contract as intended (clause 10.1) so that you protect your commercial interests under the conditions of contract.

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