Also, how does the Contractor compile this information? (Am i correct in stating that the Contractor is to use the SSCC for the build up of prices before they submit this as a quotation to the PM?)
Also, when adding assumptions/inclusions, other than pricing risk, extension of time/impact on programme, and additional costs what else may the Contractor incorporate?
Relevant clauses would be of great help, thank you in advance.
Yes you are correct that you use the SSCC to build up the cost of the compensation event with option B, although by agreement of both Parties rates or lump sums from the B of Q may be used (63.2) on a case by case basis for each CE. This would be by building up the elements in the eight categories of the SSCC, to which fee percentage can then be added to the total of all of those elements i.e. defined cost + fee in line with clause 63.1
Contractor may also factor in risk which has a significant chance of occurring and are the Contractor’s risk under the contract (63.8).
The compensation event should also be fed into the programme to see if it has any effect on either the overall planned Completion or any planned Key Dates/Sectional Completions if you have any. Any delay to planned Completion and hence the associated Completion Date milestone can only be assessed within an individual compensation event quotation. Once the compensation event is implemented (agreed) it will confirm the change to the Prices, but also the change to Completion date and/or Key Dates or Sectional Completion dates