What option exists in the Contract to allow a price to be obtained before committing to the work itself? There are lots of unknowns about the additional work (i.e. ground conditions, timing of consent with landowners) so how might these be dealt with during this process?
This is where the Project Manager can state assumptions on which to base the quotation upon (clause 61.2 for NEC3, 65.1 for NEC4). That allows the quotation to be assessed more sensibly and implemented. If the assumptions turn out to be incorrect then the difference is assessed as a new compensation event (positive or negative).
Two and a half other options to that suggest by Glenn:
- Break it down into smaller compensation events. For instance, if the CE involves design and build, get a quotation for the design which, having been done, is then the next CE.
1.5 Similar to the above, remove the uncertainty e.g. we can price for everything except for ‘X’ - say a bit of kit from a rather slow to respond manufacturer. Its quotation is without, second one is for the bit of kit.
- Agree to extend the timescale for the quotation submission until enough certainty has emerged.