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NEC3 TSC: Under Term Service Contract - Is there Value Engineering within Option C?

+2 votes
asked May 18, 2016 in NEC3 General by anonymous   3 10
recategorized May 18, 2016 by Glenn Hide

1 Answer

+1 vote
By Value Engineering I assume you mean a change promoted by the Contractor for the Employer to reconsider his requirements/Service Information to enable a cost saving.

Under Option C, clause 63.11 provides that a compensation event which reduces the Defined Cost will not result in a reduction of the Prices if it is a result of a change which the Contractor proposed and the Service Manager accepted.

Therefore a proposal to change the Service Information (VE) made by the Contractor would not change the Prices and both parties would share the saving under gain share.
answered Jul 17, 2016 by dave bates (5,450 points)