Managing Unused Tasks in an Accepted NEC3 PSC Quotation

NEC3 and NEC4 Contracts Compensation Events
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1

As the Employer on an NEC3 PSC contract, we instructed our Consultant to provide a quotation for an additional piece of work. The Consultant submitted a quotation including a cost, a time risk allowance and a supporting schedule of services. We accepted this quotation.

Now that the instruction has been completed, it has become clear that some of the tasks listed in the Consultant’s schedule of services were not actually required.

As Employer, should we assess this ourselves under clause 64.1, or should the unnecessary tasks listed be treated as a new compensation event? If a new CE is appropriate, would clause 60.1(7) or 60.1(9) be relevant?

In relation to clause 60.1(9), we are mindful that the assumptions were not stated by us as the Employer — they were principally assumptions made by the Consultant about what they thought they needed to carry out the instruction.

2

Hi PCush

At the moment, I don’t think there is anything to assess. You don’t clearly say this, but it appears that work was instructed (i.e. added to the Scope), which was a compensation event. A quote was accepted. There were no Service Manager Assumptions.

As such the implemented quote is just that - implemented. Your opportunity to challenge it has passed.

However - what your question does not tell us is the nature of the ‘services not actually required’. Is that a change to the Scope? If yes, its another compensation event. If no, its not a compensation event, and effectively the Consultant gets the benefit.

I always think it useful to consider the counterfactual. If the Consultant’s quote had actually turned out to be too low, would you be looking for a method to pay them more?