Got asked this question recently by a client - If you have an NEC4 PSC Option E contract can you start the contract without a tendered total of the prices? And if costs changes does it change via a compensation event?
An unamended NEC4 PSC Option E doesn’t requires “Tendered total of the Prices”. These entries in the contract data part 2 are only required for main options A and C. In answer to the second questions, about how the the Prices changes. The definition of the Prices in Option E is found is 11.2(22) and states “The Prices are the forecast of the Total Defined Cost for the whole of the works.”, so it can be zero and change if the forecast changes and obviously if Defined Cost changes. Compensation Events would changed the Defined Cost and logically affect the forecast, but the Prices could still change even if there are no CEs. I would suggest you read clauses defined costs eg 11.2(27), Schedule of Cost Components, 11.2 (18) and 52.1and clause E20.5 for forecasting.
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