NEC4 ECC Option D - Adjusting Quantities in BoQ

NEC3 and NEC4 Contracts
1

Under an NEC4 ECC Option D in the sole purpose of the BoQ to set the target price?

I am currently in a position on a project in which the scope initially was to import 400,000m3 of material for a reclamation scheme.

This was then reduced to 200,000m3. This change was issued by PMI, and a CE subsequently raised.

The Client is now trying to backtrack on the premise that they believe that change to the target cost should be implemented by reducing the item within the BoQ (rate change is another discussion) and that an instruction to reduce the quantity was not required.

We maintain that an instruction was required, and we are entitled to price this compensation event under defined cost, as under Option D, there is not a mechanism to remeasure using the BoQ. Is this the correct stance?

2

Under Option D the Client carries the risk of the original BoQ items so the “Target” should be remeasured on the original Scope. Changes to the Scope are managed by the compensation event process. So in answer to your question if the change in quantity is due to a change in Scope it is a compensation event that by default (unless otherwise agreed) is Defined Cost + fee