Modified Contract based on NEC3 Option B.
Clause 19 has been deleted by Option Z. Clause 60.1(19) has not been deleted.
Construction is continuing though the Contractor is finding that many of its suppliers have shut down or are operating at reduced capacity as a result of their responses to the COVID-19 pandemic.
Contractor has issued an EWN advising that it has had to change suppliers, and that costs of materials have increased as a consequence.
Would this be a CE? If so, under which clause?
The deletion of clause 19 in itself does not change the contractual risk allocation, clause 19.1 is merely the PM’s obligation to instruct the Contractor how to deal with the event.
Entitlement to time and money as a result of the event is dealt with at clause 60.1(19). Provided the Contractor can prove that the loss flows from the breach i.e. the reason for the delay and increased cost is as a result of COVID-19 then yes they are entitled to recover them.
As an observation it looks like the drafter of the Z clause made an attempt to change the risk allocation but by failing to also delete clause 60.1(19) has failed to do it effectively.
I am working on a project that was delayed by the Covid -19 pandemic. Project was supposed to start in March but only started in August . X1 is not applicable on the project. Steel prices have gone up. In order to demonstrate the impact of the steel prices, I intend decomposing (rate analysis) the initial BOQ rates and substituting the tender stage steel prices with current prices and thus adjust the boq rates accordingly, without adjusting the labour and all other components. Will this be acceptable in NEC3 Option B?