Materials forecast to be bought from abroad for a compensation event. Should the exchange rate used in the CE quote be the exchange rate at the dividing date or the exchange rate at the time of updated quote submission (many months later for various reasons)? Thanks.
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@SaintNEC I would suggest the latter since you are probably referring to forecast Defined Cost (cl. 63.1) and not actual by the dividing date. Risk allowance for exchange rate fluctuations would also make sense (cl. 63.8), depending on the timing of the order.
Hi Peter, thanks for the response. The contract states that CE quotes should be assessed as the forecast Defined Cost of the work not done by the dividing date. My understanding of that is what would have been known at the dividing date and not what would have been known months later if the quote was delayed for whatever reason?
No problem at all.
I do not disagree with your logic but since the CE will be assessed later you cannot really ignore the information you have available at the time of the assessment. Unless you are trying to say that if the Contractor reacted competently and promptly (cl. 63.9) it would have locked a more favourable (as regards cost) exchange rate. Is this the case?