Our PSC is claiming costs in their Compensation Event for the development of the quotation. We are using the Option C contract. Should not this cost be included in their fee?
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No, it should not be included in fee. The purpose of a CE is to put the supplier back where they were had the CE not happened. If they included the cost of quoting CE’s in fee, that would not be achieved - and it becomes a gamble. You’d have to guess how many CE’s would happen and what the cost of dealing with them was; how can a supplier do that? I would suggest they are entitled to assume there would be no change, and that the Scope describes all the things required.
The belief that fee covers quotations is, however, reasonably widespread. I think this is because in a couple of the historic ECC forms the cost of quotations was excluded from Defined Cost. I’m not clear why. I do know that has now been removed.