We have an Option B contract where the prelims are measure as a set figure for a number of weeks (which is equal to the initial contract duration).
As the principle of an Option B is for the Employer to take the risk on the quantities, does this apply to the prelims as well?
For example, if there is a CE with critical path delay, can the CE be implemented using the Defined Cost principle for extra-over costs and leave the prelims the be re-measured, or should the prelims be included in the CE on a forecast basis and not touched once implemented?
In Option B, the prelims in the BOQ are not remeasurable (unless you have an amendment to say so).
If you have a compensation event that has a critical path delay, you price that forecasted change to the completion date in the CE (including all applicable time related costs at the forecasted time the delay will become critical).
Don’t ever make the mistake of pricing the defined cost for the CE and excluding time, with the hope that time becomes remeasurable. Also, if you finish the job early, you are also entitled to the full prelim measurement, as you are entitled to be paid for our time related risks that you managed, the non consumption of Time risk allowances or terminal float, doesn’t mean the client gets the benefit, just as your own delays dont earn you extended prelims
Yes, that was my planned follow-up question, as we have contracts where we have the prelims declared as a lump-sum in the BoQ - in which case the response is correct, but what happens when it’s just declared a £x/week - would it be considered as any other re-measurable quantity?