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NEC ECS: Can a Contractor reduce/descope and request a requote on a previously implemented CE on a a Target Cost if that CE Works have commenced?

+1 vote
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The contract is Option C and our Contractor has previously Implemented a CE say for the works(hoarding install) which is to the value of £100K. The contract is Option C Target Cost. At the time of providing the quote for CE, there was no hoarding installed on site. The CE was implemented but a few months later the Contractor installed some of their own hoarding. When we began to install our hoarding as required by our programme, we notified the contractor that their hoarding was in the way but we could utilise it as it would be simply replacing like for like.
The Contractor has now issued a further instruction to quote on a revised hoarding plan which reduces our original scope by 75% and would therefore reduce the Target Cost.
My question is can they change an implemented CE that would in effect reduce the Target once the works have already commenced?
asked Mar 12 in Compensation Events by John Peden (130 points)  

1 Answer

+2 votes
Yes they can instruct a new CE to reduce the hoarding they want. However you then get to assess the cost saving of not providing the hoarding. If for example you have already bought all the materials and can not get any refund then you would not reduce the cost by the material cost you have incurred. You work out the cost of what the 25% will cost to install, add any cost you have already incurred and then deduct that from the £100k and the difference will be the saving you offer. You may well be able to prove that not doing 75% of the work may still cost 50% of the original quote - but of course you have to justify that otherwise they will assess it themselves.
answered Mar 12 by Glenn Hide (70,150 points)