NEC4 Option A - Instructions / CE's

NEC3 and NEC4 Contracts Compensation Events
1

Scenario,

NEC4 Option A - the PM instructs the Contractor to proceed with works currently in delay (caused by PM) but the PM does not instruct to quote.

I am trying to understand how best for the Contractor to proceed in this scenario, as the Contractor has been instructed to proceed with something, but has not been instructed to quote. Does the Contractor still have to submit a quote within the time period or does the Contractor await further instruction to actually proceed with quoting the works? does the Contractor carry out the works in delay without following the procedures surrounding quoting/agreeing costs.

My understanding is that the instruction from the PM essentially is the creation of the CE, but not an instruction to quote so the Contractor would be taking a risk proceeding without the costs/delay implications being agreed. On the other hand, the Contractor would face more delay by not proceeding.

Also off of the back of the above: Is the Contractor due to acknowledge/quote/proceed within a certain time scale (is the Contractor Time Barred in anyway following an instruction that doesn’t include an instruction to quote)

Many thanks - ExcelGuru

2

Hi

In order to answer your question can you please clarify what was instructed.

When you say in delay, is it work that is ongoing and the PM wants you to increase resources or is it work not yet started because (programmed) preceding works have not been completed and the PM wants you to change your sequence of work.

If the PM gives an instruction changing the Scope then he/she is required to notify the matter as a compensation event and instruct a quotation. If the PM gives an (valid) instruction then the Contractor is required to comply with it, the Contractor cannot wait until the costs/delay implications are agreed.

There is no time bar in relation to an instruction but the Contractor should react to the instruction competently.

1 Like
3

Thank you for your reply Dave, more or less answered how to proceed much appreciated.

The instruction was to proceed with a design review element of the project, that was in delay due to the wrong model being provided. The correct model has been issued, along with instruction to commence the review.

It is not a new element of work or an instruction to increase resources, just to proceed with works originally meant to commence at a much earlier date.

Thanks,

ExcelGuru