I’m new to this forum. On my current project, the ECC PM(a consultant acting for the Client) has decided there’s no where in the NEC3 ECC Contract which stop him from assessing CE quotations based on the latest Cost Forecast. His main reason been ‘that’s the only available information and nothing has changed’ as all your plants and resources hasn’t changed.
In my own opinion, every CE quote has to be assessed on it own merit based on Cl. 63.1 to 63.6. And have also expressed my understanding to him, that; Monthly Cost Forecast/Out-turns are for reporting purposes and subject to continuous change in practice from most large projects with various uncertainties. Am I right to say the ECC PM is wrong in taken that approach as I believe on a personal level, he doesn’t believe our quotations as we have also observed trying to adopt an retrospective assessments in the past CEs which has been PMA’ed already.
Please share your thoughts on this.
I can see why the PM has taken this stance, basically your forecasts say you aren’t incurring additional cost however you are claiming additional cost through the CE!
The PM does have the right to assess CEs if they think you haven’t assessed it correctly, which I’m presuming is his argument and so he’s not in breach so far. In making his assessment he can use whatever information is available to him PROVIDED that he also complies with the assessment rules in the contract (i.e. Defined Cost based on SCC or SSCC depending on main Option). He’s also within his rights to implement his own assessment so again no problem there other than you don’t agree (like!) his assessment. The contract doesn’t require him to agree it with you, it requires him to make a decision if he doesn’t agree with you, which it seems he has done in this case. Then, once a CE has been implemented your only recourse is to adjudication if you still don’t like it.
Tough love? Yes but hopefully it stops us squabbling over small beer!
Yes you are right that any CE should be based upon forecast Defined Cost following clauses 63.1-63.6, but equally they can use what ever information is available to them to ratify what a reasonable forecast cost would have been.