A footbridge is constructed using NEC ECC main Option B and secondary options X$2,$ X$15$ and X$21.$ There are no additional Compensation Events or Client Liabilities stated in the contract Data. The Contractor$$s Head Office is not in the same country as the site. The Contractor is responsible for designing the whole of the works. The period for reply is $3$ weeks.

The Contractor encounters physical conditions that were not expected. The Contractor seeks to overcome the issue as it believes it can avoid any additional costs or delay and so does not notify an early warning for the matter. However, within eight weeks of encountering the physical conditions the Contractor notifies a compensation event for the matter.

Which ONE of the following statements best describes how the Project Manager should respond to the notification? Select ONE. $1.$ Notify the Contractor that the event is a compensation event and include in the notification an instruction to submit quotation that states that Contractors failed the to give an early warning.