Presumably if the PM stated assumptions for the Contractor to base his quotation on then the PM should base his assessment on the same assumptions?
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Yes, the PM could not contractually do anything else! They can make their own assessment of the assumptions, and practically speaking should present these in a detailed format so the Contractor can understand how they got there. If the PM is not clear in how they got to their (lower) number the Contractor may be more inclined to go to adjudication.