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NEC ECS: Option A - Reactive works carried on inefficiently

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Under option A, the Subcontractor was required to divert a pipework to avoid other services, chartered and known. Lack of planning of the activity resulted in 5 days being lost due to inefficient excavation, pipe assembly and reinstatement, as well as an unnecessary service diversion.
Since the works were carried on in a reactive manner, the Compensation Event is being priced using accurate site records.

Is the Contractor forced to pay the incurred costs + fee, or is there any clause on that protects the Contractor from inefficiencies and poor planning?
asked Jun 12, 2019 in Compensation Events by gilsan (190 points)  

1 Answer

+1 vote
Best answer
Yes there is something that protects the Contractor - it is called the contract!

63.1 states that if the instruction changes the Works Information then it should be based upon forecast defined cost (it states the switch point between actual and forecast being the instruction). Therefore the Contractor can base the assessment on what would have been reasonable to have expected the Subcontractor(including significant risk) to have incurred. That would not include inefficiencies that actually incurred. You assess likely cost and duration's that it should have taken them including allowance for risk which has a significant chance of occurring.
answered Jun 12, 2019 by Glenn Hide Panel Member (87,060 points)  
selected Oct 1, 2019 by gilsan