The ECC Option A is being used for a new office building and associated car park. Secondary Options X7, X16 and X18 incorporated. Any response referring to dispute resolution should identify whether Option W1, W2 or W3 applies as an assumption.

The design for the office building has been submitted by the Contractor and accepted by the Project Manager. The Contractor has not proceeded with the relevant work yet.  However, the design does not comply with the building legislation current at the Contract Date. The Contractor is stating that, as the design has been accepted by the Project Manager, changing the design would be a compensation event.

a. Who is liable for this and how should it be dealt with?

b. What powers does the Supervisor have in this situation and can the Contractor refuse to respond? 

 

c. How should the additional work be instructed and is this a compensation event?

 

Assume instead that the drainage problem was a Defect caused by the Contractor. The Client's chief executive attends a routine progress meeting on Site and discovers the car park problem. As the Client's staff will use this part of the car park infrequently the Client is willing to allow the drainage to remain as it is and for the Defect to remain.

d. What is the process that needs to be followed and how should it be assessed? 

 

Towards the end of the project, relationships become strained. The Client is late in making payments and compensation events are not being processed by the Project Manager. A further Defect is found in the fire alarm systems. This is notified to the Contractor by the Supervisor 1 week after Completion, but the Contractor is refusing to correct it.

e. Is the Contractor right to ignore this notification? If the Defect is not corrected within its defect correction period, what should the Project Manager do?