We are a contractor using the ECC. If a compensation event is not mutually agreed, can the project manager apply delay damages?
Compensation events must be notified, assessed and implemented in accordance with the relevant clauses of the contract. Hopefully as part of this process, mutual agreement will be reached over the effects of each compensation event. But if there is a failure to do so, then the project manager can make their own assessment. That may or may not result in time and money outcomes you were hoping for. Delay damages will only apply if secondary Option X7 has been selected and you have failed to achieve completion on or before the completion date.