We are administering a number of NEC3 Option C Contracts and have received CE Notifications about the effects of Covid seeking recovery under Secondary Option X2. The notifications reference the unprecedented increase in demand for materials, shortage of supply due to Covid and increases in costs. The Contractor’s aim is ultimately to increase the total of the Prices to capture costs over and above tendered allowances and a change to planned Completion where the increased lead-in time for materials supply impacts critical path activities.
Our view is that whilst the Covid notification under X2 may be valid, it is too generic and tenuous to evaluate. The cause and effect has to be specifically demonstrated and assessed alongside any mitigation measures that the Contractor has implemented. A blanket CEN to cover all materials supply and cost issues is not acceptable and each case must be evaluated on its own merits.
Contributors thoughts would be appreciated to find an appropriate and considered response.