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NEC3 ECC: Requested to submit a quotation under 61.2, then instructed at cost to be agreed

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The PM has requested a quotation for works under clause 61.2, a quotation was submitted which was then instructed via a PMI as 'cost to be agreed'. Am I correct that the PM should have either requested a revised quotation or made his own assessment in line with 62.3.

If we have not been instructed in accordance with 61.1 could we assume the costs are agreed?
asked Jan 5 in NEC3 Compensation Events by matt_8 (150 points)  
recategorized Jan 5 by Glenn Hide
   

1 Answer

+1 vote
It is not as simple as if they instruct your quote to proceed then by default your quote is agreed. A clause 61.2 is a “what-if” scenario. If I was to ask you to do something, what would the time/cost implications be? Once they have the quote, they can then decide whether they want to instruct it. It is not helpful the words that they have added i.e. “cost to be agreed” but instructing under 61.1 should be clear that they now wish you to proceed. They should not need a new quote as they have yours, but it does not stop them now confirming if they don’t agree with your quote, at which point they could either ask you to re-quote or make their own assessment if they don’t agree. Either way this should be brought to ahead within the timescales of the contract. It is in neither Parties interest to leave this un-agreed and then have a subjective argument about actual cost some point later in time.   

I do think the contract could do with slightly better wording on what happens to a 61.2 quote once it is submitted i.e. how that quote gets instructed to proceed and how the quote is assessed.
answered Jan 6 by Glenn Hide (27,100 points)