We have a scenario where we have been unable to mobilise Equipment to site due to a recognised compensation event. This CE prevented access for a sustained period of time, meaning our specialist resource that was planned to be mobilised to site could not be. This mobilisation was shown on the Accepted Programme.
The Project Manager has deducted these costs due to the People & Equipment not being within the Working Areas at the time of the event which stopped access, using the wording of the Shorter Schedule of Cost Components -
“people … whose normal place of working is within the Working Areas …”
“… Equipment which is used within the Working Areas …”.
Essentially, their argument is that as the resource is outside the Working Areas, they are not liable for the cost of it.
However, we would argue that the resource would have been within the Working Areas if access was available, thus any loss sustained due to not being able to access should be recoverable. Mitigation of costs has been offered - redeployment to other projects, etc. but the Project Manager is denying the fundamental principle.
Since then I’ve amended the SSoCC to allow for these payments, should we be denied access for equipment booked in advance and through the operation of a narrowing notification window.
I suspect we are finding the limits of the scenarios a model form can deal with here.
For the people, the wording of the first bullet is ‘people who are directly employed by the Contractor whose normal place of working is within the Working Areas’. As such they do not necessarily have to be there to be paid for.
It sounds like you agree that access should have been given (there is a CE, after all), so I think the Contractor’s people who would otherwise be based in the Working Areas can be included.
That would not cover people whose normal place of working is not the Working Areas, people who are not directly employed, or Equipment. For those your PM is correct in terms of the Contract.
Depending on your dividing date (see 63.1) you might be able to forecast cost and time risk allowances per 63.6. This will be a function of when the CE was notified. A risk that you might include would be paying for something outside the Working Areas due to the delay.