Working under an amended form of NEC3 Option C within a collaborative partnership environment, the Contractor has issued a CE Notification for Change of Works Information.
The change has not been instructed by the PM, the change is to benefit both parties by lowering the final cost and would require an increase to the Prices.
When attempting to construct the original works, the Contractor encountered physical conditions which would have doubled the cost but would have not impacted the Prices (as physical conditions clause has been removed).
The Contractor has proceeded to construct an alternative solution, which is less cost than the actual works but is more expensive than what was originally agreed in the Prices.
The Contractor has excused working without instruction as is minimised any programme disruption while they awaited confirmation.
The Contractor’s view is that this should be treated as CE with an uplift to the Prices.
I am fully aware that they have not addressed this through the correct mechanisms, however appreciate we are working a collaborative environment and feel that this change would be more suitably categorised as a Contractor’s proposal as we have effectively reduced the foretasted out-turn cost with a lower pain share between the parties.
Is this a valid argument or would it be more reasonable to amend the Prices?