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NEC3 ECC: Assessment of a Compensation Event under NEC3 Short Form

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We are currently in dispute with the Contractor regarding how a CE should be assessed under the NEC3 Short Form.  The client has insisted on a Bill of Quantities being included . We have instructed the omission of an item under 60.1.1 which omits an element of the work.  The QS views this as a simple re-measurement under 63.1 whilst the Contractor insists this should be assessed under 63.2 due to the his work sequence/ methodology being affected.  How should this be assessed?
asked Nov 6, 2016 in NEC3 Compensation Events by Fraser  
   

1 Answer

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It is not for the Contractor to insist how it is assessed. It is for the Contractor and Employer to assess it in accordance with the contract. 63.1 would appear to be pretty clear - if a CE only affects the quantities of work shown in the Price List, the change to the Prices is assessed by adjusting the appropriate changed quantities of work by the appropriate rates in the Price List. Anything else would be assessed using Defined Cost outlined in 63.2. It should be a relatively clear definitive test as to whether it fits 63.1 or not, and if not it is 63.2.

Ultimately if you believe the Contractor has assessed incorrectly by following 63.2  then you as the Employer can assess it yourself (under clause 62.5) in accordance with the contract i.e. using 63.1.
answered Nov 7, 2016 by Glenn Hide (24,730 points)