the contractor submit a CE to complete a new works which may need to works in the bad weather month. However the works was done in a Good weather condition. the actual cost is much lower than the quotation
As we are in option A, and the PM accepted the quotation. is that the contract should be paid by the quotation with Fee?
how can the PM work differently for Option A?
how about if we using option C?
Simply put, once the quotation has been implemented (accepted), the Compensation Event is not revisited. For an Option A - The Contractor will be paid the amount which was implemented, thus taking the benefit (if any) for pricing to do the work in bad weather and luckily being able to do it in good weather conditions, as it’s their risk.
For an Option C, both Contractor and Employer / Client will share the benefit, as the Contractor is paid it’s actual Defined Cost.
Is there any different way for the pm to work out in option A? How can prevent the client pay too much for the risk?
The allowance for risk is assessed and agreed within the quotation, that’s when you can look to get the price acceptable. Once agreed and implemented, that’s it, as QS007 has already said.
If the work had taken longer than the Contractor allowed for, and cost more, would the client be looking to pay more than had been agreed? I very much doubt it.
If the client wanted to share in the Contractor’s gains and losses, it should have chosen Option C, but I guess it wanted to keep it’s costs to known extents so chose Option A.
You need to bear in mind that things can go both ways and clients cannot have their cake and eat it too.