Can we politely refuse to do a Compensation Event issued by the PM

We are working on a public realm type project which includes granite paving of a community space.
The client had said a number of weeks ago, they needed to put in a concrete base for a large piece of art (which was not in the original WI), it came to nothing, and it dragged on. We told them, as per the programme we were progressing with our paving works and that if they wanted to Quickly pick somewhere on the site, we would leave a box out of the area to allow for a base and the piece of art to go. We had nothing back from them, we continued on and completed the granite paving and grouted it up.

Weeks later, the PM has now come back and said we need to provide a 2.4m square reinforced concrete base in the middle of this paving.

The issue is the following:
We now have no access for excavating equipment
The paving is grouted
The works will require somehow cutting this out, not damaging anything around it, digging down almost 500mm and pouring a 2.4m square R/C base all by hand.

The risk of this going wrong and us damaging something is massive.

Is there anywhere in the NEC that relieves us from actually doing this work or must we do this work as per the PM instruction?

1 Like

Has all this been instructed in to the contract or is this pre discussion prior to an instruction? if nothing has been instructed, tell them you’re not happy with it and for the sake of the project, it’s best putting this work elsewhere. Last thing the project needs is working going in to the wrong package and causing undue stress on the subcontractor.

If it has been instructed in to your scope already, I’d still politely decline it, but once it’s instructed in, it becomes part of the works information and needs to be done. You can notify this added work as a CE under 60.1.1 and price accordingly, covering you for the risk you highlight. The agreement of the time and money is separate from the “doing” part of the instructed work.

That’s the contractual piece, but I personally wouldn’t proceed with this work until the costs have been accepted regardless of what the contract says which I know is counter to the purpose of this forum providing contract assistance for NEC.

1 Like

Leroy

Thanks for the response
In answer to your reply …
Has all this been instructed in to the contract - Yes it has been instructed as a CE by the Client

How do contractors price risk into a CE without technically writing a cost line saying “contractor risk”?

Do we just include a time risk allowance in our timings or how should we present risk, at the same time, ensuring we are paid for this without a QS starting to nit pick?

1 Like

Hi,

If it has been instructed, then you quote it as per the short schedule of risk components showing people, plant, materials, design, risk etc and put the agreed fee on top. You can include a line item for the risk element explaining it’s needed because it’s a forecast of costs.

The QS will always nitpick, it’s what he is paid to do. You can defend your stance stating the cost estimate is exactly that - an estimate of costs.

1 Like

TR - under clause 27.3 the Contractor obeys an instruction which is in accordance with the contract (see 14.3) and given by the PM - you are obliged to obey it.
The assessment of the CE must allow for cost and time associated with the event including risk - see clauses 63.1 & 63.8.
I suggest that your quotation should allow for adequate protection to the finished works and for the repair of any work damaged by the instructed work.
Alternatively you could or rather should also ask the PM to make assumptions about the event under clause 61.6, if any of the PMs assumption are found to be incorrect the PM corrects them and notifies a new CE (see 61.1 & 61.2), the correction of the assumptions is assessed under clause 60.1(17).

2 Likes