We have an NEC4 PSC Option C with our Client through which we provide forecasts of total Defined Cost.
The Client instructed a change to the Scope, notified a Compensation Event and instructed us to provide a quotation.
Some of the Scope covered by our Client’s instruction will be delivered by ourselves, and some will be delivered by our Subconsultant with whom we have an NEC4 PSC Option A.
For the Scope that we are delivering, we will include an estimate of this work in the forecast of Defined Cost. We will also include the contribution of this work to the ‘Price for Service Provided to Date’ that we apply for payment of as appropriate.
For the balance of the Scope that will be delivered by our Subconsultant, we have instructed a change to their Scope, notified them of a Compensation Event and instructed them to provide us with a quotation.
We have received a quotation from our Subconsultant, which is in the form of a change to the Activity Schedule and we are in the process of discussing it with our Subconsultant. In the interim, the Compensation Event remains ‘unimplemented’ and thus the Prices on the Option A have not been changed.
With regards to the forecast of total Defined Cost that we provide to our Client through the Option C, in addition to the estimate of the Scope that we are delivering, should our forecast also include a value attributable to the Option A [remembering that it is still an ‘unimplemented’ Compensation Event]?
With regards to payments, is it the case that as there is currently no ‘Price’ for this work in the Option A [remembering that it is still an ‘unimplemented’ Compensation Event], it should not contribute to our assessment of our Subconsultant’s ‘Price for Service Provided to Date’? If the Subconsultant delivers the work before the Compensation Event is implemented could a contribution be included in our assessment of the ‘amount due’ by being treated as an ‘other amount’?
Many thanks