E

LEBALELO WATER USER

ASSOCIATION

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

Government Gazette 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 Employer and

Contractor when in term’s of:

Clause 61.1
Compensation events arise from the Project Manager giving an instruction
or changing an earlier decision which the Contractor is required to put into
effect.
Part Contents

Part - You are instructed not to submit a quotation as this event arises from a fault of the Contractor.
1

- You are instructed not to submit a quotation as I already have your quotation(s).

- You are instructed to submit quotations for the event as soon as possible but in any case within three
weeks of this instruction.

Part - Option A: Defined Cost and the resulting Fee.

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.

- Option C: Defined Cost and the resulting Fee using the Schedule of Cost Components.

- 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.

- 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.

Part - Acceptance of the quotation, which is implemented as stated in Part 4 below.

3

- An instruction to submit a revised quotation.

- A notification that the Project Manager will be making his own assessment because the Contractor has
not complied with the requirements stated in the contract.

Part - Implementation is different for each of the main Options. Please refer to the document for specific
4 instructions.
Part 1: - Project Manager’s notification and request for quotation

In terms of Clause 61.1 I hereby notify you of compensation event(s) stated in Clause 60.1(2)1
This arises from an instruction or changed decision which you are required to put into effect given
by the Project Manager on
The details of the event are:
This compensation event is denoted CE No.

Contractor are instructed to submit quotations for the event as soon as possible but in any case
within two weeks of this instruction, per Clause 62.3, by not later than

Please complete Part 2 of this form and return all parts to me together with your quotation.

Project Manager:

Signature Name Date

1
Change the clause reference if the event arises from a compensation event in one of the Option clauses.
Part 2: - 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 (clause 11.2(22))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 (clause 11.2(22))and the resulting Fee for proposed changed rates and
new priced items for the proposed work.
(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 (clause 11.2(23)) less Disallowed Cost (clause 11.2(25)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

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.
 Contractor reference       dated      .4
Option D Defined Cost (clause 11.2(23)) less Disallowed Cost (clause 11.2(25)and the
resulting Fee using the Schedule of Cost Components for proposed changed rates
and new priced items for the proposed work.
(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 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      .

The Contractor:

Signature Name Date

4
This may be preferable where a large number of small compensation events have to be assessed.
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 3: - Project Manager’s response to the Contractor’s quotations

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 4 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 4: - Implementation of the compensation event

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

4.1 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:

Updated retention bond requested? Yes No

4.2 The changes to the Prices are as follows:

Total of the Prices at the Contract Date R 0,000.00

Net adjustment to the Prices pursuant to previous Compensation R0,000.00

Events

Net adjustment to the Prices pursuant to this Compensation R0,000.00

Event no

Adjusted total of the Prices R 0,000.00

Option E Change in forecast Per Clause 65.3

This compensation event changes the forecast amount of the Prices by plus R 0,000.00
minus
(Select plus or minus and delete the other and this note)

APPROVAL BY PROJECTS, ENGINEERING AND OPERATIONS IMPROVEMENT

PROJECT MANAGER
Project Manager
Signature ________________________ __
_________
Name in print Date
APPROVAL BY SENIOR MANAGER COMMERCIAL
Senior Manager Commercial
Signature ________________________ ___
_________
Name in print Date