Hi,
I have a subcontractor who has been delayed from carrying out their work for the last 4 months. They have issued what they think is an updated bill of quantities with increased rates as well as a revised set of rates as though they are amending contract data part two.
My understanding is that they need to raise a CE and give us an assessed difference in the rates based on defined cost for the bill items along with evidence of material cost increases etc?
My other question is are the rates in the contract data for staff / plant etc re-rateable or fixed for the duration?
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Hi, firstly which contract is it and is the delay a CE, it sounds as if it should be, if so what has caused it?
There is no mechanism to completely re-price the BOQ [Option B & D], there are 2 CEs relating to the BOQ in Option B & D which allow re-pricing, 60.4, 60.5, but these relate to where there is a difference in quantity due to the PWDD re-measure.
The CE has causes a long delay and this has to be assessed in accordance with the assessment rules under clause 63,
You could consider negotiating changes under clause 12.3, this requires mutual agreement.
Happy to discuss.
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Hello,
Thank you for the response the claim has come from the subcontractor and we are the main contractor.
The subcontract is Option B NEC4, the delays are due to programme over run not a fault of the subcontractor they have submitted the price increases albeit not under correct procedure.
I have asked our (contractors) agent to issue a revised programme to the subcontractor which will include a PMI/CE for the revised re-start in 2023.
I finished for the year yesterday so will check the clauses mentioned on the 3rd of Jan.
The part I am most unsure of is if re-rating of the contract data is allowable or can be re-negotiated by the subcontractor due to delays?
My main concern is ensuring that the cost remain allowable and are recoverable when under audit from our client should that happen.
I’m am also conscious that with current inflation and the project delays this may well happening a number of times over the coming months.
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Hi, the re-drafting of the Contract Data is not permissible, the contract allows some things to be changed under the contract such as the Completion Date, Key Dates but not much more so the only way to change or re-draft it is through negotiation under clause 12.3.
With regards to inflation unless X1 is in the contract the risk is the Contractor’s.
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