NEC 3 omission of scope

The PM has omitted scope for groundwork and there is a defined sum rounded of £150,000.
The sum included numerous assumptions for quantity.
Nonetheless the work was never carried out an no costs have been incurred other than going out to tender for prices for the work.

I have been asked to provide a quotation and have all in offer from my subcontractor to do the work for £110,000 which I have used for the quotation.

A dispute has arisen as the PM assessment is the full sum of £150000 whereas we argue that the true value would be £110000.

Who is right?

Thanks Derek Hill

1 Like

What Option is this? Generally, its the forecasted cost incurred of not doing the work, rather than any identification of Tender prices/Activity Schedule sums that you use to assess CEs. So if i was under Option A and had an Activity Schedule sum to build a 4 houses for £100k each and the i received an instruction to not build teh 4th house, i do not give back £100k. I give back teh forecasted cost incurred as a result of not building that house - it may be £80k, it may be £100k, it may be £140k. The Activity Schedule is just for cash flow, it could have all sorts in the sums, such as risk and prelims and of course alot of bunce! But thats yours to keep.

1 Like


Its Option A. Thank you that backs up my argument.

Kind regards,

1 Like

The assessment has to be based on the impact on Defined Cost / Forecast Defined Cost.

1 Like