NEC ECC: Can a Project Manager carry out an assessment in 64.1 for not liking the value of the event?

NEC3 and NEC4 Contracts
1

The Contractor has submitted quotations for compensation events as instructed under clause 62.1. The Project Manager did not discuss ways in dealing with the event with the Contractor prior to instructing him to submit quotations.

Following submission of quotations the PM has decided to carry out his own assessment of the event in accordance with 64.1 bullet point 2 (the Contractor has not assessed the event correctly).

The Contractor’s understanding is that bullet point 2 of 64.1 is limited to instances where the Contractor has failed to price the event correctly in accordance with the Contract and not that the assessment of the event in terms of rates, duration’s and prices differs from what the Project Manager wishes to agree in respect of the value of the event?

Is the Project Manager entitled to carry out his own assessment if he does not like the value of the event for which the Contractor has assessed?

1 Like
2

It shouldn’t just be that they don’t like it or cant afford it, but at the end of the day the Project Manager can always make their own assessment under the second bullet of clause 64.1. Not correctly could be that the duration’s considered too long, rates considered excessive, risk considered too high etc. They can carry out their own assessment, but it should be on that would stand up to adjudication as that is where the Contractor can go if they do not agree with the Project Manager assessment if it is implemented at their own assessment.

3

Agree with everything Glenn has said and add that “not assessing it correctly” basically means in accordance with the rules laid out in clauses 63.

Like wise, the PM makes their assessment in accordance with clauses 63.