The Accepted Programme shows a construction activity of duration of 90 days in total, this was dependent upon Others providing information. Upon completing this activity there was 2 weeks of float until the works could not be continued due to permitting constraints. This float, since it was not linked to another successive activity is free float.
The Others did not supply the information provided as agreed and shown in the Accepted Programme, and were 1 week late in providing the information. This is a compensation event under 60.1 (5) “The Client or Others do not work within the times shown on the Accepted Programme”. This is accepted and notified as the Contractor should be compensated for this delay of information - rescheduling of works etc.
However, since the free float has been reduced by 1 week, the Contractor have applied additional risk to the activity.
In my opinion, the risk of undertaking the works has not changed due to the 1 week delay, still the same activity, during the same period, under the same conditions. Any risk that the Contractor should have allowed for should fall under TRA within the activity.
This sounds like a straightforward case of the delay caused by the CE just eating into free float.
How exactly has the Contractor presented the “additional risk” within its quotation? Extra resource to make sure the activity completes on time?
I would advise you to sit down with the Contractor to try and understand what its concerns are and why additional risk should be allowed for. Following this, if you are still of the view that no additional risk is required, you could instruct the Contractor to provide a revised quotation and give it a Project Manager’s assumption that the work in question will be done in the same period under the same conditions. This would de-risk it for the Contractor and remove this element from the quotation.
If it transpires that the Contractor is somehow correct, a new CE would be triggered under clause 60.1(17).
I hope this helps. If you provide more detail on the actual work, I might be able to dive a bit deeper.
Thanks William. I am glad your thoughts are aligned with mine.
I am awaiting their quotation, the matter was discussed at an ECC review meeting as the Contractor feel the reduction in free float has increased their activity-risk profile. Which it will have, but is my opinion it is their risk. That being said, I will review their quotation when received and take it under consideration/discuss with them further.
Thank you for bringing 62.4 to my attention also, I will take that into consideration too!