We are the PM of a contrcution project. Under our contract, the right of the Contractor for compensation event of inclement weather (ECC Clause 60.1(13)) is amended. The Contractor is not entitled for changing the Prices for compensation event of inclement weather.
Once EOT was granted for inclement weather, according to ECC Clause 63.13, we therefore revise the Bill of Quantities for additional time in the Preliminaries (time related items) without changing the Prices i.e. the unit rates for those time related items are diluted/reduced.
However, the Contractor has argued that ECC Clause 63.13 is only applicable for assessments for changed Prices. As the Prices is not changed for compensation event of inclement weather, there is NO case for the revision of BQ and Clause 63.13 has no application here. The Contractor has also argued that, under the measurement rule of SMM, the extended period due to inclement weather should be measured under those time related items in the BQ.
Quotations for compensation events comprise, where applicable, proposed
changes to the Prices, and/or any delay to the Completion Date and/or Key Dates
assessed by the Contractor. For the avoidance of doubt, quotations for
compensation events under clauses 60.1(5), 60.1(13), 60.1(19) and 60.1(21) only
comprise proposed changes to the Completion Date and/or Key Dates assessed
by the Contractor, but not changes to the Prices.”
Clause 63.4 is amended as follow:
The rights of the Employer and the Contractor to changes to, where applicable,
the Prices and/or the Completion Date and/or the Key Dates are their only rights
in respect of a compensation event. For compensation events under clauses
60.1(5), 60.1(13), 60.1(19) or 60.1(21), the Contractor is only entitled to
changes to the Completion Date and/or the Key Dates but not changes to the
Prices. For other compensation events, the assessment of changes to the Prices,
if any, is not affected by any concurrent compensation event under clauses
60.1(5), 60.1(13), 60.1(19) or 60.1(21).”