The contractor is to design and build a project. He proceeds at risk as the drawings produced have not been accepted. The drawings are used as the basis for changes to the employers WI and therefore entitlement to CEs. If drawings are submitted and a CE agreed with a quotation requested but following this a revised drawing is issued changing the contractors design. How is the situation dealt with? My understanding would be that the contractor would be instructed to submit a revised quotation on the basis that the solution has changed. Is this correct?
Firstly the C should not proceed at risk. Clause 21.2 last paragraph makes it clear that the C does not proceed with the relevant work until the PM has accepted the design. This is designed to avoid abortive work. It also probably grounds to terminate under clause 91.2 for substantially failing to comply with their obligations.
You need to remember that the Employer’s Works Information takes precedence over the Contractor’s proposals (clause 60.1.1 bullet two). The C Provides the Works in accordance with the Works Information 20.1.
Which main option are you using? and we seem to have a mix of processes here.
1.Acceptance of particulars of the Contractors design - as stated above and as required by clause 21.2
2.Proposed changes to the Employer’s Works Information - the C can propose changes to the Employers WI - if the PM accepts the proposal to change the WI then he notifies a CE and requests the C to provide a quotation (if has not already submitted one with his proposal). The quotation is assessed and implemented
In main options C and D the assessment of the CE is set out in clause 63.11. This is a value engineering type clause where the C can suggest a change to the Works Information if the PM agrees this compensation event and if the Defined Cost is reduced then the total of the Prices (target is not adjusted) - their is no such clause in main options A or B