ECC option D: The Contractor submits a proposal for a Value Engineering (VE) and the Employer accepted the proposal but before the implementation of the VE there have been changes on the Main design due to Right of Way issue. The redesign cancels the accepted VE.
The contract includes amended clause Z2.7 that states “The proposal shall be prepared at the cost of the Contractor and shall include a quotation with details of his assessment and alterations to the Accepted Programme”
Given this situation;
The cost incurred by the contractor on the accepted VE is not a Defined Cost?
The cost of the VE proposal if not accepted, is not a Defined Cost?
The date of implementation is not the main factor. I’m presuming that you have put forward a proposal to change the Works Information and the PM has accepted it (as clause 63.11).
In which case the PM should have issued a CE to change the Works Information when he accepted the proposal.
If the cost incurred under your item 1 was after the notification of the CE then the cost falls as Defined Cost.
Regarding item 2, I’m not clear what you mean by “The cost of the VE proposal”. If you mean the physical work and this was carried out without the proposal having been agreed then you may well find it difficult to have it included as PWDD. You will have to convince the PM you were acting in the best interests of the Employer.