What sanctions are there in the contract

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Reference no: EM133575077

The Contractor has been appointed on an ECC Option C contract, where the works are design by the Employer. The Project Manager instructs the Contractor to stop work on a part of the works because the Employer's designer is considering the implications of a design change. All are keen to avoid any abortive costs if at all possible. After due consideration, some 2 weeks later, the potential design change is abandoned and the Project Manager immediately instructs the Contractor to proceed with the original design layout, aware there may be a delay and additional costs.

1. Should the Contractor stop work on the part of the works and what should the Contractor do in order to protect its interests under the contract?

2. What sanctions are there in the contract if the Contractor does not notify an early warning in a situation where one should have been given?

It turns out that the next day the Project Manager does notify this as a compensation event and instructs the Contractor to submit a quotation.

The Contractor informs the Project Manager, after being instructed to submit a quotation for the compensation event, that it is impossible.

Reference no: EM133575077

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