My contract is an unamended ECC Option D. We propose to issue a VO to the subcontractor to work overtime outside the normal working hours as specified in the WI. This will incur additional defined cost but it will save the overall preliminaries due to earlier completion and hence a net saving to the contract. Does this scenario fall under clause 63.11 1st bullet i.e. Prices not reduced.
What if the PM does not accept our proposal, will the additional subcontractor’s cost be disallowed? Or PM is entitled to reduce the Prices as the CE is to reduce the total Defined Cost?
I have assumed that the preliminaries you refer to are both the subcontractor’s and your costs.
What you are effectively trying to do here is instruct the Subcontract to accelerate via a compensation event (not VO). You do not however, contractually, have the authority to instruct acceleration and the Subcontractor would not be obliged to work extended hours.
A different approach would be for you to raise a proposed CE to the Subcontractor asking for his quotation for you changing (extending) the working hours in the WI. The Subcontractor could quote £0 change to the Prices and you could implement. If you are working in collaboration the Subcontractor will work the extended hours finish early and produce gainshare that you both benefit from. Similarly you will generate gainshare at main contract level and to quote a phrase “happy days”.
If you mean just your preliminaries then you will have to reach an agreement with the Subcontractor on his quotation prior to instructing/confirming.