Hi, I note that there is a Clause 60.4 dealing with compensation event regarding the difference between final quantity and BQ quantity. For the difference of the quantity, can I say it is an inconsistency between the BQ and drawings and dealing dealing under Clause 60.6?
In addition does the statement in ECC Clause 60.7 “the Contractor is assumed to have taken the Bill of Quantities as correct” apply to the assessment of all kinds of compensation events?
thank you
This question is specifically related to main options B and D where the ‘Prices’ is determined by reference to a Bill of Quantities (BoQ).
Clause 60.4 applies where the stated bullet point tests are satisfied, including where it is not due to a change to the Works Information / Scope. This can only be assessed once the final total quantity of work done is known.
Clause 60.6 relates to 3 types of ‘mistakes’ in the BoQ, as follows;
Each of these corrections is a compensation event, regardless of the reason why, although can be assessed as and when the issue is known and doesn’t rely on the final total quantity of work done.
As you have said, a ‘final total quantity’ difference may be due to an ambiguity or inconsistency, which if this is the case then the matter could be assessed under clause 60.6, rather than having to comply with the tests under clause 60.4, unless the resolution required a change to the Works Information / Scope, in which case it would be assessed as a 60.1 (1) compensation event.
Clause 60.7 means that the BoQ is used as the ‘starting point’ of a corresponding compensation event assessment, with the Employer / Client having responsibility for this being correct rather than the Contractor having any such liability. This principle applies in a similar way to that of a ‘physical condition’ compensation event and the interpretation of Site Information under clause 60.3. I would suggest that clause 60.7 applies to a compensation event assessment under clauses 60.4, 60.5 and 60.6.
Hi Andrew, thank you for your kindly advice
Regarding the issue of “ambiguity or inconsistency”, what I mean is if drawing clearly indicate the quantity is X but the quantity in BQ is Y, can I consider it is a mistake due to “ambiguity or inconsistency” under Clause 60.7 instead of Clause 60.4?
Sorry typo error, should read Clause 60.6, not Clause 60.7
Yes I would suggest that if the ambiguity or inconsistency means that the BoQ is not ‘correct’, whereby quantity ‘X’ on the drawing (Works Information / Scope) is correct, then the BoQ quantity could be changed as a compensation event under clause 60.6, from ‘Y’ to ‘X’.
The clause does not define what the ambiguity or inconsistency might be or what documentation or information it relates to, but be aware of the obligations to notify such matters under clause 17.1 and the time issue of a compensation event notification under clause 61.3.
It is interesting that if I take the correction of quantity is a compensation event under 60.6, the cost for the corrected quantity “W” (X - Y, or Y - X) shall be assessed under Defined Cost. It seems Clause 60.4 is not useful. Am I right?