Contract: Option B Amended (nothing amended to 6 - Compensation Events)
Works: Civil - Earthworks/drainage/ducting/founds
We have had a scheme where an original design had been priced under a BOQ prepared by the Contractor to the Subcontractor. The issue i have is that there has been multiple design changes which constitute a CE under 60.1.1 as the original drawings were included within the Works Information.
Before I came on this scheme the CE’s were being managed for example by a change in drainage (spec & volume) the BOQ items were fully removed and then priced on a forecast basis of defined cost.
There has been various other changes with this approach so now we have a mixture of CE pricing and original BOQ pricing. One issue which has been raised by our Subcontractor is now that we have a number of changes across the job some of the original rates are now not fit for purpose mainly due to the method of pricing for BOQ i.e. as we are now carrying out works over a longer period the recover of plant within the BOQ items is insufficient as their productivity rates have been effected.
I can understand this argument as the bill items would have been priced on a number of plant items over the works required under their planned works. Now we have changed some elements of this the recovery of plant costs could be effected.
I apologise for the vagueness however there is too much detail to get in to. I am aware of the Contract and its mechanisms however this feels like a grey area and I am reviewing this from a reasonable point of view especially as I have came on to the project at a stage when most of this change has already occurred.
My queries are:
- Contractually this has been caused by a group of CE’s rather than one original event and how this effects entitlement if it has not been raised as an issue till the last CE.
- Has anyone had experience of plant recovery from a mixture of CE and BOQ items?
- The type of demonstration that one would expect for this? I was looking to request a plant resource with utilisation rates profiled for a before and after taking in to account and demonstrating the effect of the CE’s