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NEC3 ECC: Provisional quantities in an option A contact for reinforcment re-measure

+1 vote
Our client is looking to let an option A contact for concrete frame with reinforcement to be re-measured

Should values current values for reinforcement be within activity schedule?

Would the reinforcement quantities allowed be provisional (currently based on engineers estimates kgs/m3)?

Once schedules are issued this will possible lead to either a negative or positive CE, if negative would you be entitled to loss of profit?
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asked Jul 22, 2016 in NEC3 Compensation Events by Joe  
   

2 Answers

+1 vote
In an NEC Option A Contract the activity schedule is simply used as a way to calculate how much the Contractor is to be paid each month. i.e The amount due and the Price for Work Done to Date is determined by completed activities on the activity schedule.(See main option clause 50.2 and Option A clause 11.2(27).
The activity schedule  can't be used to deal with re-measure or provisional sums. A change in the activity schedule is not one of the compensation events listed in clauses 60.1(1) to 60.1(19).

If this is something you want to do the best way is define the quantity of rebar for remeasure is to insert the quantity into the Works Information. Then when the actual quantity is known the Project Manager can change the quantity by giving an instruction to change the Works Information under clause 14.3. This will result in a compensation event under clause 60.1(1).

The way the change to Prices are assessed are detailed in clause 63.1. I don't believe there is any allowance for loss of profit under that clause.

I hope this answers your question, but if not, please don't hesitate to get back to me.
answered Jul 25, 2016 by Dave Parkinson (1,620 points)  
+1 vote
It is not recommended to mix different payment mechanism; Option A is based on an Active Schedule not subject to remeasurement and does not contemplate provisional sums.

Presuming it is Client design, the Works Information should contain the information in respect of rebar ideally in the form of schedules and drawings. If the information is expressed in terms of kgs/cum of concrete then when issued the schedule would be a change in Works Information (ie new WI) and would therefore be a compensation event. The effect of the CE would then need to be assessed (both on time and cost) in respect of the change in Defined Cost + Fee and change to planned Completion. This assessment could become complicated if the "starting information" is not clear.

If the assessment was a reduction in Defined Cost + Fee then there is no entitlement to loss of profit.
answered Jul 25, 2016 by dave bates (3,220 points)