I am an estimator preparing prices for a Tender using NEC3 Option A – Priced contract with activity schedule.
In the pricing instructions our client has stated “This Pricing Document [a list of activities created by the client] as completed by the tenderer will be incorporated into the contract as the basis of the contract Activity Schedule.”
The activities specified by the client include large amounts of work that can be only demonstrated as complete toward the end of the contract duration; this will have a negative effect on our cash-flow.
Whilst I understand the Pricing Document listing the client defined activities will facilitate comparison of the various tenders they receive, this is not suitable as the activity schedule which the Contractor is at liberty to define.
It is intended to create an activity schedule (to be named in contract data part two) with smaller well defined activities which can be demonstrated as complete to facilitate cash flow and enable prompt payment to sub-contractors.
The concern is that the Employer will insist his Pricing Document be used for payment.
Please advise your opinion.