Expert advice in minutes not days. Register it's free and ask your first question now.
ReachBack is our free community help desk for construction professionals. A library of high-quality questions from real users with answers delivered and curated by a panel of industry experts.

4,283 questions

4,472 answers

579 comments

34,694 users

Register its Free

Download here

NEC ECC: Can the Contractor introduce new items to revised quotations?

+1 vote
91 views
Whilst going through revised quotations for an accepted CE and challenging the Contractor over the build-up / substantiation of their quotation the Contractor has included new items not previously submitted.

Is this acceptable if found to be genuine or can it be rejected on the basis that the costs were not claimed for in previously submitted quotations?
asked Jul 8 in NEC3 Compensation Events by R Tyson (160 points)  
   

1 Answer

+1 vote
I guess the answer is yes - assuming you agree that these costs would have been reasonable to have forecast as being necessary. You will now take these into account when you make your own assessment (assuming you don't agree in full their new revised quotation.

If a Contractor has overpriced/estimated something in a quotation then you would make your own (lower) assessment. If you can now see that they have underestimated a quotation then you should make your own (higher) assessment.  

None of this is about actuals and benefit of hindsight, as 63.1 is clear that it should be a forecast of Defined Cost from the point the instruction was given or the compensation event notified.
answered Jul 8 by Glenn Hide (32,620 points)  
On a further point, the Project Manager may instruct the submission of a revised quotation, after explaining his reasons for doing so, although it remains the assessment of the Contractor, who may even have valid reasons for not accepting the PM's reasons..  The revised quotation may also be assessed by a different person which can lead to the entire structure of the quotation being changed.  There may also be calculation errors in the original submission which have been corrected and consequently increases the value of the quotation.

So long as the principles of the contract have been complied with then I see no reason why a revised quotation should be constrained by a previously submitted quotation or by the PM's comments.