We are on an NEC 4 Option A Subcontract. We have notified a number of CEs relating to delay and additional works; some of which have been accepted others haven’t been. All of the CEs have a programme effect.
When providing quotations, particularly relating to additional preliminaries it is my understanding that the events are dealt with hierarchically in the order in which they occur or the dividing date (which drives the critical path). If, however, a CE has not been accepted, but a subsequent CE has should we include our preliminary costs in the accepted CE ignoring the unaccepted CEs?
We have shown all CEs accepted and unaccepted on our programmes.
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The defined costs for prelims should be quoted in the forecasted cost of the delay event.
There are normally, 3 different types of delay event
- Accepted CE
- Rejected CE (or disputed CE)
- Contractor delay
If a rejected CE occurs first (lets say 1 week from Jan 1), you should value 1 weeks prelim
If an accepted CE occurs next (lest say 2 weeks from Jan 2), you should value 2 week prelim - the 6 days from the rejected CE valuation.
If you lump all the prelim on the accepted CE, you wont get that accepted either and will end up in a dispute on both CE’s (as well as being wrong)
IF the PM was correct to reject the first CE, you will have to accept that the prelim costs for the event are yours to carry. If he is wrong - bring it to dispute asap.
Doing as you suggest will result in multiple dispute and no accepted quotations at all.