I’m confused about who takes the risk of quantities under a task order raised under an NEC4 TSC Option A.
The client is questioning the quantities claimed within the AFP. Initially I figured, it’s Option A, we took the risk of quantities and we are therefore due the benefit, but I’m not sure that’s correct under a TSC.
Please advise how I should respond to assessment of quantities claimed.
Thank you.
Where a Task Order is issued the Task Price list is inserted in the Price List so becomes part of the Price List.
A payment assessment is made using the definition of Price for Service Provided to Date, which for an option A is made using the Price List.
If the Price List, including the Task Price list, includes quantities then the assessment multiplies the quantity of work completed by the rate. This operates in a similar way to a main Option B under an NEC4 ECC contract, whereby the quantity is effectively ‘re-measured’ for payment purposes.
This principle applies to the following contracts; NEC4 TSC, TSS, FMC, FMS (all with main Option A), SC and DBOC (Part A of the Price List) and all the ‘short’ form contracts (ESCS, ECSS, PSSC, TSSC, FMSC, FMSS, SSC).