NEC ECC: BOQ errors under option B

Under Option B BoQ the Contractor has priced a BOQ item which has later proved to be incorrect insofar as the price is too low and the PM can demonstrate this. There has been a change to the Works Information for the same BOQ item for which the changes to the prices are assessed as the effect of the CE on the actual / forecast defined cost. In assessing this item the PM has assessed this change on an add and omit basis using omission of the original BOQ rate. An addition has been made using the forecast defined cost with a deduction made based on what the original BOQ rate should have been. Effectively this method values the change in the Works Information only and excludes the pricing error. PM argues that C is no better off than he would have been but for the pricing error however C is still of the opinion that he should be paid the full cost since this is actual Defined Cost. I can’t see any other answer other than the PM being correct but contract is silent in such matters?

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No the contract is not silent. Clause 63.1 says that the “The CHANGE to the Prices is assessed as the EFFECT of the compensation event on … Defined Cost … and the resulting Fee.”

So, assuming the same quantities and no effect on prelims, you take the original rate / Prices, subcontract the savings in Defined Costs due to the compensation event and add in the addition to get the net EFFECT on Defined Costs which then has the Fee applied to get the CHANGE in Prices.

So, if I read your question correctly, the PM is correct in how he or she has done the assessment.

Can a contractor under option b NEC 3 subcontract qualify a tender BOQ that has he quantities are only indicative and that the sub contractor should walk the site to ascertain the full measure