Hi folks. I have been asked by a Contractor to provide details of cost savings between their current issued programme on a project, compared to the programme stated in the Subcontract. They consider that the latest programme has a duration of 6 days less than that of the Subcontract programme. What is the normal procedure here and are they entitled to look for that saving in it’s entirety?
I hope you are well.
Is the programme that apparently has a 6 day shorter duration the Contractor’s programme, or is it the Subcontractor’s programme?
Being asked to give savings is somewhat informal and not strictly compliant with NEC4. Refer to clause 36 [Acceleration] where the first stage is for the Contractor and Subcontractor to consider the change, rather than the Contractor instruct the subcontractor to provide a quote to accelerate. NEC4 requires (in this instance) the subcontractor to be prepared to consider the proposed change. Only then, should the Main Contractor instruct a quotation for the proposed change. From what you say there seems to be a presumption from the Contractor that there will be a reduction in the Subcontractor’s Prices, but it will only become apparent if there is a reduction or an increase, on your issue of the Quotation.
This may be an anomaly as the maximum timescales in the NEC subcontract for preparation & issue of the Subcontractors Quotation then the maximum period for the Contractor to assess the Quotation may far exceed the period of benefit from any acceleration achieved.
I’m good thanks, how are you?
Thanks for replying on this. It is the Contractor’s programme that they are showing to have a six day shorter duration, although I am struggling to see how that has been ascertained. Plenty of good natured discussion to have with them in the coming days on this! I suspect they are looking to try an alternate route to some from of saving without mentioning the ‘acceleration’ word which could go the other way if they aren’t careful.