Ian - The question of whether Actual Cost needs to be incurred, as Jon refers to, is a difficult one. There is no doubt that it must be incurred and justified in order to be recovered as PWDD. However, for the purposes of pricing a CE I do not believe it is so certain. There is no clear guidance and Jon and I have discussed this off-line and have different views. I consider that you start with the input, what time has it taken what person to carry out the quote, that should give me a notional cost. I assume that notional cost is the Actual Cost unless it can be demonstrated that the resource being used had spare capacity, my starting point being to assume that all resource assigned and costed to a project is fully utilised. If the QS actually gets the work done in his usual working day, or outside it with no additional payment that may (and I would say it is correct to assume) have been in preference to other work which he would otherwise have been doing so the cost is shuffled on through the project until it is forgotten or disappears. The corollary of that point is that the Contractor doesn’t suddenly get extra payment as PWDD but if he manages his QS team to not incur the notional cost then that saving is shared in accordance with the incentive mechanism in the contract.
In my view therefore you are under-recording the cost of CE preparation and putting increased pressure on the original commercial team which is not what either the contract says or intends.
I do however accept the alternate argument put forward by Jon is arguable albeit, and subject to the facts, in my view a less compelling interpretation. Probably best to be part of te project set up discussions or an early discussion before starting to prepare the quote.