NEC3 Option B, Clause 60.6

Is ECC Clause 60.6 applicable for the inconsistency between BQ quantity and the drawings?

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@stevencevans can you confirm please?

Clause 60.6 obliges the PM to correct mistakes in the BOQ. It doesn’t state that such corrections are compensation events.

A compensation event arises if their is a change to the scope/works information.

If the BOQ firms part of the Scope documents, then an inconsistancy results in a compensation event.

The PM would then use clause 60.6 to remove the inconsistency and notify it.

If the BOQ isn’t a scope document you’ll need to review your z clauses

I’m afraid your answer is incorrect. Clause 60.6 states very clearly that each such correction is a compensation event which may lead to reduced Prices.

The answer to the original question is YES, and also possibly yes to 60.4 and 60.5 if they apply.

60.6 is yes because if the BoQ has not measured the quantity shown on a drawing contained within the Scope then it is inconsistent with that drawing.

The BoQ in an Option B or D is completely remeasured and any differences between the quantities stated in the BoQ and the final quantity completed could also give rise to a CE under 60.4 or 60.5.

The original questioner may wish to consider 60.4 or 60.5.

Happy to discuss.

Thanks Steve

If Clause 60.6 is applicable for incorrect quantities (i.e. the difference between the original quantity and the correct quantity is a CE and should be assessed by Defined Cost), why there is Clause 60.4?

Hi Wai, so in the scenario described it sounded as if the BoQ had not correctly measured the quantity shown on the drawings included within the Scope at the Contract Date, that must represent an inconsistency and should be corrected.
60.4 applies to a difference between the final quantity of work done and a quantity stated in the BoQ which if the three bullet point tests are passed, allows a rate to be amended up or down to reflect possible changes due to economies of scale.

60.4 & 60.5 recognise that the final quantity of work completed could be different than that stated in the BoQ, whilst the work completed is paid for at the rates in the BoQ the fact that there is a difference could either affect the rate or time, hence 60.4 & 60.5.

Hope that helps.

Thanks again Steve

I am still very confused about the application of Clause 60.4 and 60.6. It seems both of the clauses are compensation event for the difference between the quantity stated in the BQ and the final quantity (not including change of Works Information). However, I note that the assessment for the difference of quantity is very different between the 2 clauses.

I note that many people consider the CE assessment under Clause 60.4 should be the change to the unit rate i.e. the new rate = the BQ unit rate plus/minus the change of Defined Cost per unit. The new rate is therefore applied to the final quantity of the BQ item. I am doubt about the assessment. This is because the BQ unit rate enters into the assessment process.

For the CE under Clause 60.6, only the difference between the BQ quantity and final quantity is a CE and should be assessed under Clause 63.1.

The approach of assessments for CE under these 2 clauses is very different and would result in large different of amount.

Could you please explain under what situations to apply Clause 60.4 and Clause 60.6. Grateful, if you could also explain the assessment of Clause 60.4.

Thank you very much