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
Hi Wai,
60.4 and 60.6 are not for the same thing, I’m afraid I don’t see the confusion?
60.4 - A difference between the final total quantity of work done and the quantity stated for an item in the Bill of Quantities is a compensation event if…
60.6 The Project Manager corrects mistakes in the Bill of Quantities which are departures from the rules for item descriptions and…
Your quotes from 60.6 are not what is stated in the contract.
Examples:
60.4 - Excavation decreases from 10,000m3 to 3,000m3 resulting in a greater cost per m3 for the Contractor in undertaking the work, provided the conditions stated under the 3 bullets are met a CE has occurred and the assessment is carried out in accordance with clause 63 and the rate can be changed. So for 10,000m3 the Defined Cost per unit rate might be £X but for a far less amount the Defined Cost per unit rate might be £X+ dues to economies of scale, in which case the rate can be changed in the BoQ.
60.6 - The drainage should have been divided into different classifications of depth in accordance with the method of measurement, but was not. The PM has to correct the BoQ, which means reproduce the appropriate section measured correctly and notify the CE to the Contractor. The CE assessment starts on the basis of clause 60.7, i.e. taking the BoQ as correct and that helps understand the forecast Defined Cost of what was originally included and the new items or changed BoQ is assessed based on Defined Cost as per clause 63.1, etc or the PM and Contractor could agree rates or lumps sums under clause 63.13. Again, the Prices may increase or decrease.
Hope that helps.
Thank you Steve
I totally agree with you that 60.6 is just applicable for mistake regarding itemization. However, many people consider the incorrect quantities stated in the bill of quantities is a discrepancy and/or inconsistency. As such, incorrect quantities is a kind of compensation event. It makes me confused.
I note that you consider the CE assessment starts on basis of clause 60.7 for the assessment of CE under 60.6. Does it mean the BQ unit rate enter into the assessment? i.e. BQ rate +/- Defined Cost change per unit of quantity