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Claiming for losses when scope of work is reduced

+1 vote
95 views
The Client issued drawings late and procurement of reinforcement steel was based on BOQ. however as the project progresses the concrete quantity in the BOQ at tender is half the total concrete on completion and 50% of the steel will not be used. Is there a way of claiming compensation under NEC 3. Which clauses cover such a risk.
asked Aug 17 in NEC3 and NEC4 Contracts by brianmukoyi (130 points)  
   

1 Answer

+1 vote
Yes.

For a start, I assume that the date for issue of the drawings was either in the Works Information &/or the Accepted Programme. That would be a compensation event under clause 60.1 (5).

You could also argue that the PM is changing the Works Information. That would be c compensation event under 60.1 (1).

Finally look at option B clause 60.4, for a reduction in quantities. While its application would mean that you receive less overall, it may well entitle you to a re-rat to recover the overheads included in your original rate.
answered Aug 18 by Jon Broome (23,720 points)