Client requesting rate breakdown for bespoke item in bill - NEC 3 Short Form

NEC3 and NEC4 Contracts
1

We secured and won a tender with a local council.

Their bill was porr at best, with items provided, basically forcing us to put lump sums down against the rates.

There was however a line in their bill or schedule that said: “All items not listed above but required in order to facilitate the contract” - in other words, if we have missed anything from putting out a poor tender, insert the costs here.

So in here we allocated a sum of money, mainly money we wanted to use for risk, part load charges, material inflation, additional offloading of deliveries, providing a bond and some other items. I did not price these items in the prelims, as i wanted my prelims to cover mgt and site security etc

The client is now requesting a rate breakdown of this item and querying whether we are entitled to payment

A couple of queries

1 - Are they entitled to a breakdown
2 - If i say “contractor risk item” is this ok
3 - If i explain all of the above can any of it be withheld
4 - Is there anything we can say in here which would negate this money being withheld.

Thanks in advance

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@Civils-ND if i understand correctly, the main concern is if you will get paid for this lump sum. In accordance with cl.50.3 the amount due is the PWDD which is defined (cl. 11.2(9)) as either a lump sum in the Price List which the Contractor has completed or an item with a quantity stated - I believe yours is the former.

So the key here is completion. I’m not sure what is the exact description but I would avoid mentioning risk, because it could be challenged whether it has materialised or not (i.e. completed).

I hope this helps with your query.

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3

Thanks Peter, yes, i am concerned of providing a breakdown of any allowances i have made for an arguement to commence whether we are entitled to any or all of it.

Are correct in our assumption then if we say, we are not providing a breakdown of this lump sum,they cannot withhold the payment? Or has the QS a case that he can argue, “im not convinced this item is complete therefore I am not happy to pay”?

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