NEC3 unclear scope of work

NEC3 and NEC4 Contracts Compensation Events
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Hi all, I have a question and would like to seek for some advice.

Currently, we have a NEC3 Option B contract running. Under the scope and relevant specification documents, it stated that Contractor needs to design and construct a RC structure of “not less than 20m long or otherwise approved by the Project Manager”. The Contractor submitted the design based on 20m long for approval.

But now there is a third party (future user) suddenly jumps in and requests a 30m long RC structure, where extra expenses and time for revisiting the design; and extra cost of construction arose.
The PM insists that the dimension is not fixed in Contract, and is subject to their approval, so it’s not a CE. But the Contractor is having a different point of view.

Should it be a CE of changing the works information (60.1(1)) and/or Others do not work within the conditions stated in the works information (60.1(5))? Since the minimum requirement of the structure has been changed.

Thank you

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“Cl.20.1 = The Contractor provides the Works in accordance with the Works Information”, which based on the above the Contractor has complied with. If the Employer/Others want to change the Contractors design they need to send a Project Managers Instruction (CL.14.3) and notify the Compensation Event (Cl.60.1.(1). The Contractor is entitled to price the extra over costs/recover (the additional 10m). Otherwise, what prevents the Employer requesting 40m, 50m…etc and the Contractor footing the bill every time!

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Great answer, I agree with your analysis. The way the Scope is drafted means that if you have designed based on 20m you have complied with the requirement.

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Thanks all! The Contractor has issued multiple NCEs for the event, just the PM refuses to confirm this is a CE. The PM thinks that the Contractor is liable to liaise with the future user and any change shall deem to be included in rate.

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