We have a Contractor (1) who is late in delivery of the works.
We had planned another Contractor (2) to come in after Contractor 1 had completed their works.
As it is we have had Contractor 2 come to site whilst Contractor 1 is still on site.
We have transferred the role of Principal Contractor from Contractor 1 to Contractor 2.
We issued a PMI to Contractor 1 to advise them they not longer have the PC obligations.
My Commercial Manager has stated that even though the Contract (1) is in delay of his own making we should expect to receive a negative Compensation Event quotation as the Contractor no longer has to provide welfare and site management for the forecast remaining duration of the project (3 months).
I believe that because Contractor (1) is in delay of his own making and that the welfare and site management costs are currently not included in the Total of the Prices there is no Defined Cost from which to expect a negative quotation.
Please can you advise?