Miscalculation in activity schedule

NEC3 and NEC4 Contracts Payment
1

Hi

I’m not sure if this is suitable for this platform but I am seeking some assistance with some university work.

The question I am faced with is:

''Scenario 4

Having started construction of the dwellings, the contractor, MVP, notices that it has made a mistake in the Activity Schedule which means that the tendered total of the Price is £81,000 less than it should have been.

The mistake in the Activity Schedule is illustrated as follows:

Completion of Sub-Structure House Type B and C @ £120,000 * 2 = £159, 000

Advise MVP on the implications of this error using contractual terms to substantiate your advice.‘’

Any help or guidance in the right direction with this would be much appreciated.
Thanks for reading,
Jack.

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2

Hi Jack,

Is this NEC3 or 4 ? Also, which Option is it, A or C ?

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3

Hi

It is NEC4 Option A.

Thanks,
Jack.

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4

Given this is University Work, it wouldn’t be right of me to give you the answer ! So here are some thoughts & areas to look at in the contract to help support your arguments.

Your question states that the tendered total of the Prices is £81K less than it should be, which suggests your Activity Schedule and Contract Data prices are aligned, so there it appears there is no inconsistency here.

Based on the above, I would be checking the Defined Terms to see what ‘Prices’ means which are found around CL 11. Helpfully, this section also tells you how the Prices are changed.

Reading the contract, focusing on how / when prices are changed, (CL.60 is quite informative) will help your contractual arguments.

In short, both parties have signed up to a contract, for a price defined in the Contract Data.

If you find a clause which allows the Contractor to correct an error prior to Contract award let me know !

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5

Thank you for your response.

I have not been given a lot of detail into the background of the contract. I have just been given the scenario with no additional information. I do not have access to defined terms.

Also, apologies for seeming quite silly, I am not sure what CL11 and CL60 are (I am a construction engineering student and not a law student).

Any more help with this would be appreciated.

Thank you
Jack.

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6

CL = Clause, the numbers I gave you are the relevant clauses / sections in the NEC4 Option A conditions of contract.

I would check with the person who gave you this question as to answer it you would need to refer back to the conditions of contract.

If you haven’t been given this you’ve been given a challenging task.

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7

Thanks for clarifying.

No I have not been given conditions of contract, the information I have been given is very vague hence my frustration leading me to reach out further afield.

Thank you for you time.
Jack.

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