Expert advice in minutes not days. Register it's free and ask your first question now.
ReachBack is a free community help desk for construction professionals run by Built Intelligence. A library of high-quality questions from real users with answers delivered and curated by industry experts.

5,331 questions

5,705 answers

1,264 comments

Register its Free

Download here

NEC ECC: PWDD at Completion Option A

0 votes
32 views
The Works have been certified as complete by the PM, however in trying to settle the final account, the PM is consistently refusing to pay for 1 item that was contained in our Activity Schedule on the basis that the item was not carried out. The item relates to temporary lighting, an item we (the Contractor) inserted into the Activity Schedule to cover a potential need to provide lighting during the switch over of new permanent lights. In the end we did not need to provide it.
The PM's reason is that the definition of PWDD is that only completed items become due for payment and this wasn't undertaken

We have argued that the project is a lump sum and at Completion the total of The Prices should be paid (unless amended by a CE). We have suggested we amend the Activity Schedule, removing the item and spreading the monies. This has been rejected on the grounds that "it's too late now". So frustrating as its only worth £3K!!
asked Nov 8 in Payment by jonty (120 points)  

1 Answer

+1 vote
What you have suggested is the correct remedy - although you should have suggested it  a long time before you have to avoid this issue altogether. If the Contractor is not now doing an item on their activity schedule, they can revise it to redistribute that cost elsewhere so the overall total still adds up to the correct total of Prices. I see no where in the contract that makes this "too late" as the only reasons to reject are that it is not in line with programme, does not add up to correct amount or are not evenly distributed.

If you needed more temporary lighting you would not have been able to claim more - hence the fact you didn't need as many (or even any) is your advantage/benefit under an option A priced contract.
answered Nov 8 by Glenn Hide Panel Member (77,210 points)