I am currently managing a contract under the ECSC and have some disputes over information provided as part of a quotation for a CE and need to understand if the Employer can ‘self-assess’ the costs quoted in the same way as for the ECC.
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Under the full Engineering & Construction Contract (ECC), as the Project Manager if you do not agree with the Contractor’s quotation, you have two options :
- not accept it and instruct the Contractor to submit a revised quotation after explaining your reasons for non-acceptance (see clause 62.4), or
- Make your own assessment.
Under the Engineering and Construction Short Contract (ECSC), as the Employer you only one option : reply that you do not agree and the Contractor “may submit” a revised quotation within two weeks (see clause 62.4). If they do not, or if you disagree with the revised quotation, the Employer is obliged to assess the compensation event. There is no time limit on this assessment.
In principle the Employer has the same ability to assess a Compensation event under the ECSC. The main difference is that:
Clause 62.4 states that if the Employer does not agree with the Contractor’s quotation, he notifies the Contractor.
Clause 62.5 then states that the Contractor may submit a revised quotation within two weeks of the Employer’s reply. If the Employer does not agree with the revised quotation, or if none is received, the Employer assesses the compensation event and notifies the assessment.
Under the ECC the PM is not required to give the Contractor a “second stab” at the assessment and may directly proceed to make his own assessment of the event.
To avoid wasting precious time you may want to sit with the Contractor and clarify your concerns before instructing the revised quotation?