NEC ECC: Use of rates and lump sums to assess a compensation event

NEC3 and NEC4 Contracts Compensation Events
1

A Contractor has submitted a quotation for a CE using rates from the BQ. The contract is an NEC3 ECC Option B. The PM has not disagreed to the use of rates.

The quantity is incorrect and we have assessed the CE by changing the quantity and leaving the rate the same. The contractor has replied that the agreement to use rates only applies to their quotation, and that they do not agree to the use of rates in our PM assessment.

We believe cl. 63.13 concerning agreement to use rates and prices is a principle that can be applied to all assessments of that specific CE. It would not be equitable if the PM couldn’t assess an incorrect CE on the same pricing basis as a contractor.

What would your views be?

2

Ideally, both Parties have a discussion about whether to use rates and lump sums to assess a compensation event before it is submitted.

Looking up “agree” on my on-line dictionary, it says “have the same opinion about something” and “concur; be of the same mind/opinion”.

You are clearly not now of the same mind/opinion, so you are not agreeing, so you default to clause 63.1.