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Section 6— Compensation Events

Clause 63.6

CE Assessment — Cost Components

Purpose

The assessment of cost includes the effect of the CE on the Defined Cost. Under Options C, D, and E, only Defined Cost plus the Fee is included.

Practical Application

The Contractor identifies all additional Defined Cost directly attributable to the CE. This includes labour, plant, materials, subcontractor costs, and overhead.

Common Pitfalls

Only cost directly related to the CE is recoverable. General site overhead and non-attributable costs should not be included in the CE assessment.

Related Clauses

Clause 63.3Clause 52.3

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