The contract is ECC Option A with secondary Options X15 and Y(UK)2 being incorporated. The Contractor submitted his first programme for acceptance in accordance with the contract timescales but now realises he has not priced a 30m length of security fencing, nor is it shown on the programme.
a. Can the Contractor be paid for this fencing?
b. What happens to the Accepted Programme now that both the Project Manager and Contractor realise there is an error on it?
A month later the Contractor has sent out some enquiries for some subcontracting piling works, which is Contractor-designed to meet a performance specification in the Works Information provided by the Employer. The price is 30% more than he has allowed for in his tender. The Contractor is advised by one tendering Subcontractor that some alternative piling could be provided at half the quoted price and which meets the performance specification for the piling in the Works Information.
c. Can the Contractor change the piling method he has priced upon and shown in the Accepted Programme?
d. On what grounds can the Contractor submit a revision of the Activity Schedule to the Project Manager for acceptance?
a. Given that it is an Option A the cost of the fencing is deemed included in the total of the Prices therefore there should be no extra payment (provided it was shown in the Works Information at tender).
b. When the programme is updated under clause 32 the fencing activity should be added.
c. Yes provided that the piling fully complies with the Works Information. The contractor should resubmit his design for acceptance.
d. In accordance with clause 54.2 the Contractor can resubmit the Activity Schedule to realign to the Accepted Programme. The resubmission should not result in a change to the total of the Prices.
Hi Dave,
Thanks for your replies.
Could you provide more elaboration for your reply (b) and also ECC clause reference for your reply (a) and ©.
Appreciate
Just have a read of the contract clauses and you should then understand Dave’s answers. There is only a page and a bit of option A clauses if you are looking at the ECC black book (which covers all the options) and most of the points you ask are in that page and a bit of clauses.
If this is some kind of exam question you have to do a little bit of the work yourself!
For part © the contractor to resubmit design for acceptance. Is based on clause 16.1? or clause 21?
There is no obligation to submit the alternative piling design unless the Works Information/Scope states they have to. If it is their own design it is up to them to make it work. If you are NEC4 and this is a proposal for value engineering under clause 16, then any cost saving not change the Target Price but increase the relative gain-share between the Parties. I
This is NEC4 and it is contractor proposal (half of quoted price) and starting by clause 16.
In clause 16.2 (1st bullet) saying “accepts the Contractor’s proposal and issues an instruction changing the Scope”. And, assume Scope is provided by client, it will then be a CE in clause 60.1 because of changing Scope and 63.12 / 63.14 applies.
Is that correct?
Yes if this is a Contractor proposal that has been accepted, the Prices are reduced by applying the value engineering ratio to the full saving cost in line with 63.12/14.