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NEC ECC: Can a Compensation Event reduce the price paid by the Employer

+1 vote
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If the Project Manager proposes to give an instruction to change the Works Information which obviously reduces the costs of the Contractor, can the Project Manager ask the Contractor for a quotation which reduces the Prices?
asked Jun 9 in NEC3 Compensation Events by anonymous  
   

1 Answer

0 votes
Yes.

If there is a change to the Works Information then this is a compensation event. The Project Manager can instruct(not ask) the Contractor to submit a quotation. This could be something that is more expensive/more difficult, or to reduce scope/make something easier. Either scenario should be assessed as the time/cost impact of that instruction, and this can be a negative quotation i.e. a saving. If the Contractor submits a quotation lower than the PM believes it should be, then they can assess it the same way they can assess any compensation event and increase it accordingly. This is the rare scenario that the PM actually thinks the quotation is not high enough!!
answered Jun 9 by Glenn Hide (27,100 points)