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NEC ECC: Should I pay the forecast defined cost, even if the subbies who carry out the work aren't the subbies listed?

0 votes
The Contractor submitted a quotation with forecast defined cost, it stated Subcontractor A would be carry out the works with X equipment and X people.

When I went to assess the quotation a couple days after submission I was informed by the PM that works was actually carried out by subcontractor B because subcontractor A did not have the right documents and equipment in place to carry out the works.

How should I make my assessment, do I ask the contractor to resubmit and this time with actual defined cost? or Do I carry out a PMA based on the information I know to be true?
asked Mar 17 in Compensation Events by bb_alabi (170 points)  

1 Answer

0 votes
Firstly, the rules will vary a bit depending on when the time of the forecast is deemed to be made depending on whether you are under NEC3 or 4 and the type of compensation event - as in which compensation event it is listed in clause 60.1.

Having said that, broadly speaking the Contractor needs to make their forecast based on the rules in clause 63 and what is known at the point in time. So if, under NEC4, at the point in time of the 'dividing date', they thought they were going to use Subcontractor A, then that is what they should base their forecast on and you should evaluate it against.
answered Mar 18 by Jon Broome Panel Member (65,620 points)