I am working on an NEC3 Option B contract.
There are several items in the BoQ that the Contractor has priced but the corresponding works are not shown on the drawings and some items that the corresponding works are not required.
It is my understanding that cl60.6 is appropriate to resolve these issues.
(a) Where the works are required, an instruction is required to be issued along with a new drawing(s). When assessing the contractors quotation, is it correct to assume that the priced BoQ item is correct (cl60.7) i.e. assessment of CE would be £0.00?
(b) Where the works are not required an instruction would be given, When assessing the CE the contractor would submit defined cost + fee as if the works were to be carried out. This would then be a negative value added to the BoQ, thus any profit included in the originally priced item would be payable. Or is the value of the bill item just deleted.?
Any advice/ comments on the above, would be appreciated.
For (a) if I’m understanding correctly, works are required that are not within the BoQ. In that case cl 60.6 applies and a CE should be notified. The assessment of the CE, by default, should be the Defined Cost + fee.
For (b), items are in the BoQ but not in the WI, a CE is required to correct the BoQ. The assessment of the CE cannot be on Defined cost since there is no work to “price”. I suggest the most sensible way forward would be to agree to use the bill rates to assess, as you say delete the bill value.
Dave,
Thanks for your comments.
Just to clarify my original query, with regards to (a), the priced Bill of quantities already contains an item for the required works. For some unknown reason, the works are not shown on the drawing(s). Does that change how the CE is assessed?
If I understand your comment, with regards to (b), using the existing bill rate the overall effect of the CE would be the Prices are reduced. It is likely the the “omitted works” contained an element of profit, how is the Contractor compensated for this loss, especially when preparing the BoQ is an Employers risk?
Hi
sorry I’m confused with (a), the BoQ contains the items but they were not on the original drawings but they are now? If they are now on the drawings they are a CE because it’s a change in Works Information/Scope. If that’s the case they should be assessed at Defined Cost + fee, or, by agreement using bill rates.
(b) The Contractor is not compensated for loss of profit