We have contractual arrangements with one of our suppliers under Option A. There has been a change to scope which our contractor has submitted a quote for.
Unfortunately there is no or little information to the quote build up therefore making it very difficult to assess.
We have asked the contractor for more detailed information, but because they are on Option A they say they do not have to break down their prices, is this correct?
No they are not correct - and quite a dangerous game for the Contractor to play. If I was a Contractor I would want to give you as much detail and evidence that my quotation is correct - not keep it as vague and as high level as possible. The reason for this is if you do not think I have assessed it correctly then that would be a reason under clause 64.1 for you the project Manager to make your own assessment. I suspect that assessment would be lower than I think it should be, but once âImplementedâ I would only be able to formally challenge that via adjudication (which most Contractors would not want to do).
You also have clause 13.4 - which states that a reason for withholding acceptance (in this case a quotation) is that more information is required to assess the Contractorâs submission fully. You can therefore ask for more detail in order for you to assess the quotation.
I agree with Glennâs comments and add :
Under clause 62.2, the Contractor has to submit details of his assessment for a quotation. For me, it is reasonable to assume that the minimum detail needed is a breakdown to the same level of detail as that in the Shorter Schedule of Cost Components - otherwise how do you knwo it is assessed in accordance with the contract ?
If the Contractor does not supply this detail, then do not be afraid of assessing the compensation event. While you have to be âimpartialâ (according to the judge !) in matters of assessment and certification, you can be at the bottom end of impartial based on the information you have and some reasonable assumptions.