I am currently working on behalf of the Employer on an NEC3 (Option C) contract. The contractor has included within his tender, the cost of two identical items of equipment to be manufactured by his sub-contractor. In the Works Information, the employer has only asked for one of these pieces of equipment.
During the Application for Payment process the Contractor has applied to be paid for both of these (as they are defined costs). The Employer believes that they should only be paying for one, as that is what was asked for in the Works Information. The Contractors argument against this is that it was within his gift to allow for 2 pieces of equipment to mitigate any risk, therefore he will deliver one, with the other being used for risk mitigation (as risk which has now passed).
I can see where the Contractor is coming from, in principle, however it seems a bit extreme in this example, as the equipment in question cost c£75k/each.
Further more, to add more confusion, the price that the Contractor submitted quantified both pieces of equipment as one item (with a total price for them both). The Employer did however view the Contractors original sub-contractor quotations.
Can anyone advise if the costs for the second piece of equipment are disallowable under the Contract?