NEC3 ECC: Removing Scope

NEC3 and NEC4 Contracts Compensation Events
1

This question relates to the Project Managers ability to remove scope as opposed to the principles of evaluation. A theoretical example is provided:

The Contractors original scope of works was to construct 10 tennis courts. An instruction and supporting compensation event is provided changing the Contractors Works Information, to also include the construction of 6 football pitches.

Quotations are accepted and the change implemented.

At a point in time a further instruction and supporting compensation event is provided changing the Contractors Works Information, this time reducing the Contractors scope to 2 football pitches.

Therefore the revised Works Information now requires the Contractor to complete the original scope of 10 tennis courts plus the additional works of 2 football pitches.

Can the Project Manager instruct the reduction in 4 football pitches even if they are still due to be constructed?

This may be a point of law rather then specifically NEC3 however a similar example has arisen on an NEC3 Option B contract.

3 Likes
2

Yes, the Project Manager has the authority to add or remove scope from the contract by changing to the Works Information. His authority to do this is stated in clause 14.3.
Even if the deleted work is still to be carried out(under another contract? at a later date?), that doesn’t change the Project Manager’s authority to delete it from this contract.

I hope this answers your question but if not it would be useful to understand the Project Manager’s reasons for taking this action, before I can comment further.

3

Yes, I can see no reason why the PM cannot instruct work to be deleted, change in Works Information, and therefore what would be a negative CE (saving in Defined Cost + Fee).