We are project managers on a NEC3 Option A contract on a refurb project. The Contractor carried out investigations which highlighted potential risks in the early stages of construction. This resulted in further survey and design work which delayed the original work that the Contractor was expected to complete. In effect, the Contractor was instructed to proceed with the survey work and the original work delayed until the surveys were complete. The effect of this was that their project team was reduced and/or should have been reduced.
The Contractor claims that they maintained the same project team as they had for the original scope and wishes to be paid for this delay, the People rates agreed in the Prelims for the original scope.
Is the Contractor entitled to payment for the same team as agreed in the original scope or should it reflect the reduced team?
Hi, welcome to the community
The Contractor needs to show the effect on Defined Cost due to the compensation event. If the Contractor was unable to mitigate and reduce its team then the assessment should be based on the full team if it was able to mitigate and reduce then the assessment should be based on the reduced team.
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