We are using an NEC3 ECC Option D Contract. We have requested a quotation from our Contractor under Clause 61.2 (proposed instruction). Are we required to accept the quotation before the Contractor can proceed with the work, or can we already instruct the Contractor to proceed with the work and issue our assessment of the quotation on a later date?
My understanding of Clause 61.2 is that the PM is not yet sure whether he wants the Contractor to proceed with a proposed instruction so he obtains a quotation first to have a basis on his decision and that’s why the Contractor does not proceed with the work yet.
On the other hand, when a PM instructs a quotation under Clause 61.1, he is already very sure that he wants the Contractor to proceed with the work (regardless of its possible effect on the target cost) and that’s why the Contractor can proceed with the work.
Also, I understand that after a quotation has been submitted under Clause 61.2, and the PM is already decided he wants the Contractor to proceed with the work, he then issues an instruction to the Contractor to proceed with the work. Then, the PM or the Contractor may now raise the Compensation Event under Clause 61.1 (compensation events which arise from the Project Manager or the Supervisor giving an instruction). Since the quotation has already been given by the Contractor, he need not instruct the Contractor to submit a new/revised quotation until he is done with his assessment.
I hope to be enlightened on the matter. Thank you!