Operating under an NEC3 ECSC
Have received a quotation from the Contractor to undertake additional works under a CE as a result of conditions being worse than being initially expected (hoped for).
The cost quoted bears no relation to what could reasonably be expected to represent value for money, however, if proper process has been followed then this will have to be absorbed.
There are four parts which cause concern and are therefore questionable:
People costs have been included, Site Manager, Contract Manager, H&S representative. The hourly rates given for these staff members would make an American lawyer blush. As there is no SSCC in the short form, these rates were not included at tender stage. Can I request justification for these costs?
The work itself has been sub-contracted, so the cost has been presented with the relevant percentage added. Is it fair to ask for a copy and breakdown of the quote instead of a lump sum? (It also raises concerns about why so much management costs are needed above.)
A separate sum for delay has been included, there is no indication of how this has been derived. With no SSSC, and no rates fixed, can this be requested? It may be based on preliminary costs but it is impossible to tell. Further to this, if works are completed by a subcontractor, would the main contractor be entitled to the same level of recompense?
The last part is the inclusion of a risk allowance, under clause 63.6, to the total. This seems to been included merely to add profit and it is not apparent as to its justification. Although additional works are required, establishing its quantum is entirely achievable.
To summarise:
can hourly rates be questioned?
Can subcontractor quotes be questioned?
To what extent should delay costs be broken down?
When is the risk allowance included?