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NEC ECC: Actual cost used for a CE

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Hello Glenn, thanks for the concise answer. If both parties wanted to agree to use "actual cost" on an item that was clearly seperated from the other works, and on another part of the site they could they agree it under Cl.62.1 " ? (as an alternative way of dealing with a compensation event). I can see circumstances where traditional forecasts and assumptions can become very complicated.
asked Feb 13 in Compensation Events by engineering (300 points)  

1 Answer

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Again not really. 62.1 is about alternative quotes for dealing with something a different way and then deciding which one they want, not giving a quote for forecast and one for actual.

If both Parties really agree that it is so difficult to agree that it will be assessed on actual cost then obviously they can, but it is never as easy as it sounds to prove actual cost. If you had ten operatives for ten days - did you really need ten operatives and could they not have done it in eight? The easiest way to do this contractually would to be to agree to an extension to provide the quote for a long enough period that the costs would then be known.

Still strongly recommend where ever possible use of PM assumptions is a better way to ring fence the quote and sensible approach to managing risk. Do accept that occasionally the situation you describe will occur and the Parties may agree there is no other practical way to assess it other than actuals.
answered Feb 13 by Glenn Hide Panel Member (81,330 points)