An interesting question for some of the advanced users of NEC3.
The contract is NEC3 Option B
It is common cause between the PM and contractor that a compensation event has arisen due to the following scenario. The difficulty I’m facing is with the quantification thereof.
The scenario is as follows:
The BOQ item is for the procurement, installation and materials to install 80mm 25Mpa herringbone paving. The Works Information requires 80mm BUT 40 Mpa paving.
The BOQ provided for single rate for the various materials, i.e. paving; sand; as well as the installation being the labour component to install.
In getting to the rate in the BOQ, the contractor did not price for the paving as he already had excess stock from a previous project and he underpriced labour component by mistake. Therefore it is impossible to work out how the rate is compiled.
It is clear that different paving is required however the rest of the process is identical.
How now does the contractor price for the 80mm 40Mpa paving? Because this is the only item that has changed, does he add the actual cost of the paving onto his BOQ rate or is the entire rate relooked at based on the SSCC mechanisms?
Would he need to explain to the PM what his BOQ rate comprised of in that he never included the paving in this rate but now that a different paving is required he gets to add it on?
I look forward to the responses.