The PM issued an instruction to the Contractor in accordance with 14.3 back in December 2016. The quotation negotiations took several months to agree and during this time the Contractors design changed in a way that virtually negated the CE in its entirety.
During the protracted negotiations the Contractor did not proceed with the instruction in accordance with 27.3 and 61.1 and has only just started working on the reduced scope covered by the CE.
The Contractor is arguing that the CE should be valued in accordance with 63.1 (December 2016 notification date / greater forecast scope of works) which normally I’d agree with however as the Contractor did not act in accordance with 27.3 and 61.1 is there any recourse available?
I’ve suggested that a revised quotation based on the now agreed scope would be more appropriate and reflective of the intention of CE’s not to financially benefit or penalise the Contractor but they disagree with this approach.