Hi. Our PM has instructed us to provide a quotation for a CE in NEC3 Option A. Our quotation has been built up and submitted with plant labour and materials. The PM requested back up supplier/subcontractor quotation/invoices to support a claim for an item of material. We have submitted the quotation our subcontractor supplied to us however he wants our subcontractor’s sub-subcontractor and suppliers quotations, however this is forecast. What do I do?
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The problem you have highlighted is a good reason to use members of the NEC3 family at subcontract level, because you then have back-to-back contractual provisions tog et information off the subcontractors and suppliers which you have to supply at main contract level to justify your quotation. You may well have done this, but the same principle applies at subcontract level.
However, we are where we are. I assume there is no rate tendered prior to entering the contract for this material. If you look at clause 52.1, the last sentence states “Defined Cost includes only … amounts at open market or competitively tendered prices with deductions for … .”
So the first thing you can try and do is to get the subcontractor and suppliers to demonstrate some sort of tendering process to arrive a these costs : it can be as simple as simple as copying three website pages for the same material with prices next to them. Note the wording of clause 52.1 does not mean it has to be the lowest, just at ‘open market’ or ‘competitive’ prices. Alternatively, you do this exercise to demonstrate the figure is reasonable.