E

LEBALELO WATER USER

ASSOCIATION

Established in terms of Section 92(1) of the National Water Act, 1998 (Act No
36. of 1998)

Government Gazzette No 89/23053

PO BOX 2075, POLOKWANE, 0700

+27  082  462 7379 (012) 348 4654
Project Name:
(012) 348 2253
Project Manager:
E-mail: bierman@lebalelo.co.za
Email:
Contact Number:

Contract No:
The works are
Purchase Request no
.

Contractor name:

ADDRESS

Email:
Contact Number:
Date
Document Number:

This document is used for communications between Project Manager

and Contractor when in terms of

Clause 61.3

The Contractor notifies the Project Manager of an event which has happened
or which he expects to happen as a compensation event

Part
 Part 1 Clause 61.3, Clause 61.4

Part 2 Clause 61.4, Clauses 62.1, 62.2, Clause 63, Proposed Changes to Prices, Completion Date(s),
Key Dates

Part 3 Clauses 62.1, 62.2, Quotation Submission, Clause 63, Assessment of Quotation, Altered
Accepted Programme

Part 4 Clause 62.3, Reply to Quotation, Acceptance of Quotation, Instruction to Submit Revised
Quotation, Assessment

Please note that the provided table is based on the information provided in the document
sections you provided. There may be additional relevant sections in the contract that are not
included in the provided excerpts.
Regenerate response

Part 1: - Contractor’s notification of a compensation event

In terms of Clause 61.3 we hereby notify you of compensation event(s) stated in Clause
60.1(     )1
 The details of the event(s) are as follows:
     

[Select the statement below which applies and delete the other one and this note]

The compensation event started to occur on:

The event is expected to happen as a compensation event on or about:

We record that in terms of Clause 61.4 the Project Manager is required to provide his decision on
this notification to the Contractor within one week of this notification namely by      

For the Contractor:

Signature Name Date

1
Change the clause reference if the event arises from a compensation event in one of the Option clauses.
Part 2:- Project Manager’s response to the Contractor’s notification

In terms of Clause 61.4, the Project Manager decides that:

[Select the box below which applies and delete the other one and this note]

The event notified by the Contractor in terms of Clause 61.3 [select the bullet statements below
which apply then delete the others and this note]
● arises from a fault of the Contractor
● has not happened and is not expected to happen
● has no effect upon Defined Cost, Completion or meeting a Key Date
● is not one of the compensation events stated in this contract
was notified more than eight weeks after the Contractor became aware of it
Hence it is the Project Manager’s decision that the Prices, the Completion Date and the Key
Dates are not to be changed.

The event notified by the Contractor is a compensation event and the Contractor is instructed to
submit quotations for the event as soon as possible but in any case within three weeks of this
instruction, per Clause 62.3, by not later than (date)      

Please complete Part 3 of this form and return all parts to the Project Manager together with your
quotation.
This compensation event is denoted CE No.

Then use or delete these boxes as applicable and delete this note:

In terms of Clause 61.5, the Project Manager confirms that you did not give early warning of this
event which you could have given because      
Clause 63.5 requires that you assess your quotation as though the early warning had been given.

In terms of Clause 61.6, the Project Manager has decided that the effects of this event are too
uncertain to forecast reasonably and you should base your quotation on these assumptions:
     

Project Manager:

Signature Name Date

Part 3: - Contractor’s submission of quotations

In terms of Clauses 62.1 and 62.2 we submit our quotation for the above described compensation
event. If you requested alternative quotations or we have decided to submit quotations for other
methods of dealing with the event these are clearly identified as such.
Each quotation comprises proposed changes to the Prices and any delay to the Completion Date(s)
and Key Dates where they are used and if they are affected.
Each quotation includes full details of our assessment carried out in accordance with Clause 63.
The quotations are attached:

[select one then delete the other and this note]

in a document called      
in electronic format in a file named      

[select one then delete the other and this note]

As the programme for remaining work is altered by the compensation event, we have included the
alterations to the Accepted Programme.
As the programme for remaining work is not altered by the compensation event, we have not
included any alterations to the Accepted Programme due to this event.

The basis of assessment in terms of Clause 63 for changed Prices is:

(Delete the rows for Options which do not apply, then complete data required in the row which
remains & delete this note.)

Option A Defined Cost and the resulting Fee. (Complete or delete 2nd sentence if it does not
apply & delete this note)
Except that per Clause 63.14 rates and lump sums have been used in place of
Defined Cost and the resulting Fee for items       per the agreement between the
Project Manager and the Contractor reference       dated       2
Option B Defined Cost and the resulting Fee for changed rates and new priced items for work
not yet done, and new lump sums for work already done.
(Complete or delete 2nd sentence if it does not apply & delete this note)
Except that per Clause 63.13 rates and lump sums (NOT from the bill) have been
used in place of Defined Cost for items       per the agreement between the
Project Manager and the Contractor reference       dated       3
Option C Defined Cost and the resulting Fee using the Schedule of Cost Components.
(Complete or delete 2nd sentence if it does not apply & delete this note)
Except that per Clause 63.15 the Shorter Schedule of Cost Components has been
used for items       per the agreement between the Project Manager and the
Contractor reference       dated      .4
Option D Defined Cost and the resulting Fee using the Schedule of Cost Components for
changed rates and new priced items for work not yet done, and new lump sums for
work already done.
(Complete or delete 2nd sentence if it does not apply & delete this note)
Except that per Clause 63.13 rates and lump sums (NOT from the bill) have been
2
This arrangement only used when it is impractical to assess a Subcontractor’s costs using the Shorter
Schedule of Cost Components.
3
This arrangement only used when it is impractical to assess a Subcontractor’s costs using the Shorter
Schedule of Cost Components.
4
This may be preferable where a large number of small compensation events have to be assessed.
 used in place of Defined Cost for items       per the agreement between the
Project Manager and the Contractor reference       dated       5
(Complete or delete 3rd sentence if it does not apply & delete this note)
Except that per Clause 63.15 the Shorter Schedule of Cost Components has been
used for assessing items       per the agreement between the Project Manager and
the Contractor reference       dated      .
Option E Except that per Clause 63.15 the Shorter Schedule of Cost Components has been
used for assessing items       per the agreement between the Project Manager and
the Contractor reference       dated      .

For the Contractor:

Signature Name Date

5
This arrangement only used when it is impractical to assess a large number of low value compensation
events using the full Schedule of Cost Components.
Part 4: - Project Manager’s response to the Contractor’s quotation

The Contractor’s quotation was received on (dd/mm/yyyy)      

This reply is due within 2 weeks, hence by:      

In terms of Clause 62.3 the Project Manager’s reply to the Contractor’s quotation is:

[Select one of the three statements below which apply then delete the other two and this note]

Acceptance of the quotation, which is implemented as stated in Part 5 below

An instruction to submit a revised quotation. My reason for this instruction, in terms of Clause
62.4, is:
     
A notification that the Project Manager will be making his own assessment because in terms of
Clause 64.1, the Contractor …[select the bullet statements below which apply then delete the
others and this note]
● has not submitted the required quotation and details of his assessment within the time
allowed
● has not assessed the compensation event correctly
● has not submitted a programme which this contract requires the Contractor to submit
● the Contractor’s latest programme has not been accepted for one of the reasons stated in
this contract

Project Manager:

Signature Name Date

Part 5: Implementation of the compensation event

In terms of clause 65, the Project Manager implements this compensation event as follows:

5.1 The changes to the Completion Date and the Key Dates are as follows:
(Delete references to Key Dates if they have not been used then delete this note)

The changes to the Completion Date (dd/mm/yy) are: from to

[add further rows if more than one section is affected]                  
for section number:
for the whole of the works            

The changes to the Key Dates (dd/mm/yy) are No. from to

[add further rows if more than one KD is affected] for
Key Date number:

5.2 The changes to the Prices are as follows:

[Implementation is different for each of the main Options. Delete the procedure for Options which
do not apply then delete this note]

Option A or
C

[either use this table, increasing the number of rows as Item from to
required, or cross refer to a revised Activity Schedule.] no.
The Prices in the existing Activity Schedule are changed
as follows:                  
New items and Prices to be included into the Activity
Schedule are:            
The total of the Prices in the Activity Schedule current
at the date of this implementation is changed:

Option B or [either use these tables, increasing the number of rows as required, or cross refer
D to a revised Bill of Quantities.]

For work not yet done where there is an item in the Bill of Quantities, the item is revised for a
changed rate, a changed quantity or a changed lump sum as follows :

Item no. Description Unit Quantity Rate Price

 For work not yet done where there is NO item in the Bill of Quantities, new priced items (quantity
related or lump sums) to be included into the Bill of Quantities are as follows:

Item no. Description Unit Quantity Rate Price

For work already done where there is NO item in the Bill of Quantities, new lump sums to be
included into the Bill of Quantities are as follows:

Item no. Description Unit Quantity Rate Price

from to
The estimated total of the Prices in the Bill of Quantities
current at the date of this implementation is changed:            

Option E or (Select plus or minus and delete the other)

F

This compensation event changes the forecast amount of the Prices by plus
minus

Project Manager:

Signature Name Date