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NEC ECC Option A - Cancelling a PMI

0 votes
Once a PMI has been issued instructing the Contractor to submit a quotation and proceed with a change to the Works Information. Can this instruction be cancelled as it's no longer required?

Would this then be a change to the WI again by reverting it back? 60.1 (1)

Is the Contractor entitled to cost of preparing a CEQ?
asked Sep 3 in Compensation Events by trauts80 (150 points)  

2 Answers

+1 vote
Best answer
You cannot simply cancel an instruction once issued. There are two steps, one issuing an instruction change scope/WI and a second changing it back again. The net result could be a higher cost, the same cost or even a lower cost as the rules for pricing a CE are not the same as how the contract price may have been established.

Recovery of the costs of CEQ will depend on the form of contract.
answered Sep 3 by Rob Horne (18,730 points)  
selected Sep 3 by Glenn Hide
+1 vote
Just to add's to Rob's answer for the last bit "recovery of the costs of CEQ will depend on the form of contract". Under NEC3, for options A & B cost of preparing quotations is expressly excluded, but not for options C onwards.

NEC4 those words are deleted for A & B so cost of preparing quotations can be included.
For NEC3 and 4, in any event only extra over costs that you can prove has/will be spent. If you can price that CE with the original project team then there will be no additional cost to price.
answered Sep 3 by Glenn Hide (66,350 points)