NEC3 Option B - PM Assessment

Our contract is NEC3 ECC Option B. A CE was raised for some additional works and we submitted the quotation (a forecast of work not yet done) and completed the works before receiving any further communication from the Project Manager. The contract has been amended so that the Project Manager has 7 weeks to respond and the works were completed within those 7 weeks. After the works had been completed, the Project Manager made their own assessment and priced the works retrospectively, reducing the costs. Can the Project Manager price the work retrospectively? Does clause 65.2 only apply when a quotation has been accepted? Thank you.

Welcome to the group.

Clause 65.2 applies to all implemented quotations for compensation events. The standard process of implementation is set out in the 3 bullet points under clause 65.1 and in answer to your question, no the quotation does not need to have been accepted in all cases. The second bullet deals with a Project Manager’s assessment which the Contractor does not need to accept for it to be implemented.

In assessing compensation events the PM is required to follow the principle of clause 63.1 and the dividing date between actual and forecast; the PM should not be pricing retrospectively presumably because you bettered your forecast unless your forecast was unreasonable. Has the PM stated what reason allows him/her to make their own assessment, if not you should consider asking for clarification.

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Thank you for your reply, it’s much appreciated.

Within their assessment, the PM has referred to the second bullet point of clause 64.1 (if the Contractor decides that the Subcontractor has not assessed the compensation event correctly in a quotation and he does not instruct the Subcontractor to submit a revised quotation). Our quotation was submitted using shift rates as stated in the contract however the PM has assessed the work based on actual hours worked which has reduced the cost.

So if the PM is required to follow the principle of clause 63.1, are they (in this case because they instructed a quotation before the event) required to assess the work as if they were also pricing it prospectively? Thank you.

yes the PM is required to assess the cost as a forecast prospectively