NEC 3 - Option B - remeasuring the works under Cl.60.4
I believe that the remeasurement is completed by the PM/QS, at Completion of the Works. At this point the PM notifies a Compensation Event to the Contractor, if the criteria meets all three of the bullet points given in Cl.60.4. As the remeasurement takes place after the event has happened (works are pre-“dividing date”) then the Compensation Event quotation should be based on actual cost incurred by the Contractor, plus the fee percentage. If the BoQ M2 amount reduced on a painting contract, and this resulted in the unit rate increasing, would the PM be correct in requesting substantiation from the Contractor that the unit rate had gone up i.e. requesting to see invoices from the paint supplier etc?
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Hi LU, I’m afraid your belief is wrong in regards to when the remeasure is undertaken. The PWDD for an Option B is the actual quantity of work completed by the Contractor, therefore the BOQ should be being remeasured by the PM throughout the contract (see clause 50.1).
As soon as it is known that there is a difference between the final quantity completed and the quantity stated in the BOQ and that the difference has caused the Defined cost per unit rate to change, CE 60.4 should be notified within 8 weeks of becoming aware, otherwise the Contractor will lose their entitlement.
The dividing date for CE60.4 is the date that it is notified (63.1), logically this has to be once the final quantity is known, so it is fair to say that the CE assessment should be based on the actual Defined Cost as per clause 63.1 and therefore the PM and Contractor should be looking at actuals.
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Thanks for the guidance Steve. I note Cl.60.4 refers to “an item in the BoQ”, I read this as individual materials.
If I understand correctly there could be multiple remeasurement CE’s under Cl.60.4. For example, if the programme were 10 weeks and a line item in the BoQ contained 10m3 of concrete. If in week 6 of the programme all the concrete was poured and the final quantity for this “item” were 15m3, then the PM would notify the CE for the increase in that item quantity in week 6 (the additional 5m3), provided it meets the requirements given in Cl.60.4 bullet points ? This would be completing the remeasurement over the contract and notifying “as-and-when” the final quantities are determined for each item.
Would anyone be able to confirm the above please.
Engineer,
The onus is on the Contractor to notify a CE if/when it becomes apparent that the 3 tests under clause 60.4 have been met, this needs to be done timeously.
And yes this applies to individual items in the BoQ.
Thanks for the clarification S_Gowdy.
Is there anything stating the emphasis is on the Contractor ? Cl60.4 is silent on who should notify the CE. CL50.1 reads “The Project Manager assesses the amount due”. Is there not just as much responsibility on the PM to carry out the remeasurement and notify ? Cl61.1 requires the PM to notify CE’s regarding “issuing a certificate”, would the payment certificate not fall under this and place the responsibility more on the PM to carry out the remeasurement? I understand in reality you need the contractor to submit accurate payment applications and why would the PM go out their way to do their work, but I can’t see anything that states it’s the Contractors responsibility to complete the remeasurement.
The answer can be found in clauses 61.1 and 61.3.
Under clause 61.1 the PM is obliged to notify CEs for instructions or changed decisions.
Under clause 61.3 the Contractor is responsible for notifying CEs under any other heading i.e. those that do not arise from instructions or changed decisions. If the Contractor does not notify within 8 weeks of becoming aware of the event he runs the risk of losing entitlement to time/cost recovery.