NEC4 Option B: Compensation Event and value engineering percentage

NEC3 and NEC4 Contracts Compensation Events
1

We are working on an Option B contract.

Part of the works was priced based on the drawings, specification and description in bill of quantities.

There was a note in the specification that the contractor could propose to use an alternative material/product instead of that noted on the drawings, specification and bill description. (the type of alternative material is noted in the specification but not a product which we had to review and proposed for acceptance).

My question is - although though the Client has suggested an alternative in the specification, does clause 63.12 still apply and the contractor is entitled to the saving as noted in the contract, or as the Client suggested the alternative, the Contractor is not entitled to any saving as he has not proposed the alternative.

1 Like
2

This would very much depend on the precise wording of the Scope. Clause 63.12 applies where an Contractor has made a proposal to change the Scope under clause 16. So if the Contractor did make a proposal, even if invited by the Client to do so, then it is likely caught by clause 16 and therefore 63.12 would apply.