Estimating possible exposure from unnotified compensation events

Use project evidence to estimate the possible value of compensation events that have not been notified or assessed. There is no verified recovery percentage applied here, and an estimate does not establish entitlement.

Start with a sample of recorded events. Check whether each is a compensation event, who should notify it, the applicable time bar, supporting cost and programme evidence, and whether its value has already been recovered elsewhere. Use low and high scenarios where information is incomplete.

• List potentially unnotified events with an evidence reference and provisional value
• Review late notifications individually; do not assume every late notification is time-barred
• State any assumptions used to extrapolate beyond the reviewed sample, and avoid double counting

Review the basis of the assessment

GMH’s webinar on assessing compensation event costs explains the assessment process. Use it alongside the applicable contract; a potential cost exposure is not proof of entitlement or an agreed compensation event value.

Gather is a construction Record Management System that helps teams organise site evidence for commercial review. To see the recording workflow, book a demo.