I am working on an NEC4 PSC (Option C). The Consultant has notified a compensation event which we agree is a compensation and we have therefore instructed the Consultant to provide a quotation and Cl62 programme via a Service Manager’s Instruction (rather than a Proposed Instruction). Within this instruction there is nothing stating that the Consultant should commence the works pertaining to the compensation event notified, the instruction only states to provide a quotation/programme.
My first question is whether, by default, this instruction is also an instruction for the Consultant to start work or should a new instruction be notified?
Secondly, a verbal instruction was given by the Service Manager to start works which is not in accordance with the contract however the Consultant, in good faith, started works. The Consultant is now waiting until either an instruction is provided in accordance with the contract or until the compensation event is implemented before applying for payment for these works. If we are happy to pay, should they be applying for payment or waiting for a formal instruction/implementation of the compensation event?
The instruction is to provide a quotation and the work shouldn’t start until the quotation is accepted. According to the contract, there shouldn’t be any payment for the works until a CE has been implemented.
I don’t think the second part of your answer is correct under Option C.
Bumping this post as I haven’t received a clear answer/explanation.
Dave, are able to provide some insight on what you believe the process should be?
Mf
Can you clarify if the proposed work is a change to the scope?
If it is, you have to instruct it to allow the works start.
If it has started, but is not in accordance with the scope, the consultant can apply for payment under option C, but the cost would likely be a disallowed cost.
Verbal instructions in NEC4 are just an informal chat.
My comment referred to the fact that, under Option C, the Consultant is normally paid for the work that has actually been carried out, and that would normally include work on a CE which has not yet been implemented.
As regards the question of whether the Consultant should be carrying out additional/changed work, that would depend on the nature of the CE and the instructions issued. I don’t have the NEC4 PSC to hand (only NEC3 PSC) but I believe the Consultant is required to Provide the Services in accordance with the Scope. So, have you issued an instruction to change the Scope? If not, I can’t see how the Consultant can be working on that changed Scope.
As you haven’t explained the nature of the CE, it’s difficult to be specific. I would suggest you talk to the Consultant and clarify what you want them to do or not do.