JCT D&B 2016 - Uplift to service provider costs included in CSA

I am working with a contractor on a D&B project where the client team provided a sum for Utilities companies to be included in the CSA after the contractor has submitted their tender.

The apointment of the contractor was delayed for about 10 mo ths and the Utilities quotes where never updated.

The contractor has now got to site and has submitted a variation for the cost increase of the utilities costs.

This was not noted as a provisonal sum, is the contractor entitled to the additional moneis due to the delay in appointment/incorect figuers provided for inclusion.

It is worth noting the contractor did not query these costs prior to signing the contract?



Martin, it does not sound very promising for the Contractor. If I understand correctly, the Contractor submitted a quotation (on which the Employer added the sum for the utilities) and after 10 months the parties signed a contract based on the same fixed sum. If that is the case, I cannot see how a request for a variation order can be justified.

It would be a different story if you had a deferment of site possession, in which case there would be entitlement to loss and/or expense, and any associated increase to the utilities’ cost could be justified.

So, if the parties signed and then the Employer deferred the Date of Possession, you could have a case.

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