NEC3 - Negative CE for removal of methodology restriction

I am working under a NEC3 Option A. My client has issued a CE notification due to the removal of a methodology restriction specified within the WI, with the intention of reducing the price. In summary, the element of works was split into numerous sections which required us to complete one before moving to the next, we can now work on the entire area at once which is in theory a more efficient operation.

The restriction is detailed under an Indicative Construction Sequence section of the WI, which goes on to detail that the ‘construction sequence is listed for information only’ and that the ‘responsibility lies with the sub-contractor to achieve completion on or before…’

Am I obliged to reduce the price as a result?

Adam,

In a word – No

Caveat: - Without knowing the detail or history of who or why there was “removal of a methodology restriction specified within the WI” it is difficult to say definitively, but from what you explain, the Works Information has not changed, therefore there is no Compensation Event. With no Compensation Event there can be no change to the Prices.

image001.png

The ‘methodology restriction’ in the Works Information would be a ‘constraint’ on how you are required to Provide the Works, so any removal would be a change to the Works Information and constitute a CE under 60.1 (1).

A corresponding CE assessment would be made based on;

  • the total Defined Cost plus Fee, including the CE, less the total Defined Cost plus fee, not including the CE.

This could result in a negative assessment, with clause 63.10 (ECC) providing for the Prices to be reduced.

1 Like