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NEC ECC: Can I change the price for an activity using a CE if a PMI is issued delaying a Key Date

+1 vote
The Employer has delayed the project by 6 months can we raise our price to cover the increase in costs event though clause X1 is not in the contract.

In the original contract subcontract starting date is 18 Jan 2016 and subcontract  completion date is 17th Sept 2017 works are not due to start until 14 July 2017.

The contract is an Option A
asked Oct 13, 2017 in Compensation Events by Swarco PM (210 points)  

1 Answer

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Best answer
Presumably the delay to the works would be a compensation event e.g. you were not given access to the works by the access date stated in contract data (clause 60.1(12)). If that is the case then you get to assess the full effects of that compensation event upon the remaining works. If you know there will be increased costs for any reason then these can all be claimed for within that compensation event.

If however the who project is being delayed before you have even started then this should be agreed as part of the negotiations before the contract is signed. This should be agreeing revised starting/completion date and also verifying that the tender price is still relevant to the revised project you are about to sign up to.

X1 is to cover change in inflation as the project progresses for all costs, not just compensation events.
answered Oct 13, 2017 by Glenn Hide Panel Members (74,860 points)