Q. Do you raise or instruct a compensation event?

A. Neither of these. The answer is that you notify a compensation event (CE). Most CE's arise (in an ECC contract) because the Project Manager (PM) has instructed a change to the Works Information (WI). Hence why we call this a PMI, a Project Manager's instruction. In most instances this will be a CE that has an effect on the Prices (the lump sum or the target, etc) and so I think we try to shortcut things even further by using the phrase 'The PM instructed a CE' - what we really mean is that the PM gave an instruction which changed the WI and this instruction is also a CE which may or may not have an effect on the Prices/planned Completion. We don't seem to like the latter as it's too long so often this is turned into the former. But the former is wrong, does not accord with the contract and gets confusing. I also want people to stay inside the contract, following its provisions, that's a far better place to be than operating outside of the contract. So, the logic is.... 1. The PM gives an instruction to change the WI (clause 14.3) & let's ignore the possible obligation to notify an early warning before this! 2. Communications are in a form that can be read, copied and recorded (clause 13.1) 3. The Contractor must obey such instructions (clause 27.3) 4. The Contractor Provides the Works in accordance with the WI (clause 20.1) 5. Clause 13.7 demands that notifications which this contract requires are communicated separately from other communications 6. That brings us nicely on to the CE process. Assuming neither bullet of 60.1(1) applies, a CE arises where the PM gives an instruction to change the WI. 7. As this CE has arisen due to the PM giving an instruction then then PM should notify the CE to the Contractor at the time of the communication (ie when the PMI was given). 8. If the PM does not notify this CE (which is a bit naughty but there you go!) then the obligation falls to the Contractor to notify this CE to the PM (clause 61.3) and this will not fall foul of the time bar rule in clause 61.3 as it should have been notified by the PM but was not. So I've stretched 'The PM instructed a CE' into 8 parts but that's important. Parts 1-4 make sure the PM properly keeps the WI up to date and reflects the Employer's requirements. Part 5 gives us a basic rule that means administration of communications becomes that bit easier, although of course more communications result from this (maybe that's another thread another time...). Part 6-8 deal with the basics of getting the CE acknowledged in principle, and away you go from there. So what's the moral here? It is to follow the wording of the contract, nothing exciting there, but it is important to make sure you do what the contract requires you to do, nothing more, nothing less.