I’m currently working in a target cost TSC and the contractor has issued a CE following a request for additional works. The CE is valid however the contractor has included an additional item for risk. The risk item has been put in the CE to cover a return visit to the site during the 12 month defects period. The contractor is requesting the risk item as they are saying that the works are likely to be damaged during the 12 month period. I have suggested that the risk item should be removed as we are only assessing workmanship issues and if an external party were to damage the kerbs it would be raised as a new job? Hopefully a straight forward one but thought I should ask your thoughts?
Agreed! Defects are for their own risk under the contract. Assuming such damage is not their risk (and I hope it isn’t) then they do not allow for it. It will be raised as a compensation event if it ever happens.
With any compensation event you can obviously make your own assessment if you believe they have not done it correctly, so ultimately you can take this element out and “implement” it accordingly.
If the kerbs are damaged by Others after Completion then this would be an insurance matter under the Employer’s Insurances.
The Contractor should have allowed for the risk of Defects in his Fee for the compensation event.