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NEC ECC: Option C compensation event assessment design stages

+1 vote
166 views
During an option C design and build contract, where the starting point for design was at outline design stage (although the outline design was produced by the same supplier as a separate early contractor involvement contract), the contractor has progressed the design to AFC and now the PM wants to make a change to part of the design. To budget for the impact of the event the PM wants to understand how much the event will cost prior to issuing a PMI (but not use a PICD due to time constraints). The part of the design to be changed has developed significantly from outline to AFC but not due to compensation events. If the construction element of the CE was valued using the outline design as the starting point and not the AFC the costs will be significantly higher. Should the construction element of the compensation event be valued from the AFC design or from the outline design at contract commencement?
asked Oct 15, 2018 in Compensation Events by NECuser2018 (130 points)  

2 Answers

+1 vote
I presume PICD means proposed instruction or changed decision under clause 61.2?

I'm not sure why the PM doesn't want to follow this procedure, after all the amount of work the Contractor has to do is the same unless the PM is prepared to accept a "*** packet" estimate from the Contractor instead of a proper Defined Cost plus Fee quotation?

Your contract is based on the outline design which has presumably been included in Contract Data part one as Works Information. The compensation event is therefore based on the same design.
answered Oct 15, 2018 by Neil Earnshaw Panel Member (30,340 points)  
+1 vote
I agree with Neil. However, if that means that you are having to re-design the detail AND that causes delay then you are entitled to those costs as part of the compensation event assessment.
answered Oct 16, 2018 by Jon Broome Panel Member (64,230 points)