NEC ECC: Risk Allowance

If Contractors’ quotation with 4 days risk allowance is submitted and Project Manger considers the quotation is realistic but withhold acceptance. The Project Manager waits to see if the 4 days are used. If not used, can PM assess CE based on actual Defined Cost plus resulting Fee? (Option C)

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No the quotation should be assessed based on a reasonable forecast in accordance with clause 63.1. That forecast should include risk which has a significant chance of occurring and is the Contractor risk under the contract.

Will the PM be happy to increase the risk allowance if it proved the risk was not enough? Normally in that situation they would just say they agree with the quote. The PM can not have their cake and eat it.

Only other option would be to replace the four day risk with a Project Manager assumption under clause 61.6 if it is an element that is a variable. if that four days was say for potential to find asbestos, they could state a PM assumption that states assume you will not find asbestos, and if they do that would then be assessed as a compensation event.

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