A Contractor’s quotation for a Compensation Event includes for the cost of People as associated with doing the work resulting from a Project Managers Instruction changing the Works Information. For example, an instruction requires additional procurement, measurement, valuation and payment as well as preparation of the quotation, site management, assessment of risk assessments and method statements etc. Does the contract intend, or even go on to state, time for People for all these items be included?
Is the Project Manager correct to state that they must only pay for the time involved in preparing the quotation? In a typical view this is seen by the PM as some time for the Surveyor (a few hours only) and actually excludes all other document management, site management and engineering setting out time and the like.
If Contractor states when submitting the quotation that there is no effect on the Completion Date, then accordingly he cannot include extended prelims and effectively "prolongation " costs as they do not apply, and this makes sense. But can the PM remove such costs and resources in their assessment of a CE on the basis that “those people are here anyway”.
It is thought not, as the actual costs borne by the Employer are not the basis for his entitlement under CE’s under the contract.
Guidance is appreciated ! Surely they need to argue why it is Disallowed?