Option E Programmes

Hello, I accepted a quote from our PSC to undertake design work under Option E (cost reimbursable). The programme submitted at the time reflected the activities in quote provided. Since the acceptance of the quote, the scope has been reduced, and this had been captured for recording purposes in a CE. I have not accepted the first programme yet. My question is, since I haven’t accepted the first programme yet, should the first programme be the programme submitted alongside the quote, or can I request that a revised programme is submitted and used which reflects the scope change? I understand if this was Option C I would need to accept the programme alongside the quote as the first programme, but given this is Option E, is this slightly different?

Answering in parallel with your other question - sorry, but you understand wrongly. Programmes do not become accepted through implementation of compensation events.

Similarly to my other answer, I don’t know how you have assessed your compensation events without having had at least one accepted programme, particularly in Option E where the real import is in relation to time.

I also don’t, on the face of it, understand why you don’t have an accepted programme - I’m inferring that this project has been going for some time. All the accepted programme is is the best understanding of the plan at the time it is submitted; so up until the time the scope was reduced it should have shown everything.

In terms of action, I would absolutely instruct the submission of a programme and encourage the Consultant to get it in ASAP, and approach it from a perspective of wanting to accept it. It will put both of you in a better position.

(I was formerly andy.thompson on this Forum)

Thanks for the response Andy.
This isn’t accepting a CE, this is for their main works order which I’m referring to. Maybe I can explain better below.

  1. Consultant has provided a quotation (along with a programme) to provide a service for design work.
  2. Client has accepted quotation for the service.
  3. Client waits for Consultant to upload the first programme for acceptance, but in the meantime, the scope of works is reduced by Client.
  4. Consultant uploads the programme which is based on the original scope of works to become the first programme.

Does the Client accept the ‘old’ programme as the first programme, or should the first programme accepted by the Client be the one which reflects the reduced scope of works?

I still don’t get this. Where are we contractually? I think (but can’t be sure) that you have a finalised contract. I suspect that were I to go and look at Contract Data Part 2 I would find no programme referenced there. As a result the Consultant submitted one. Fair enough. They essentially submitted the programme from their quote, by the sounds of it with a few amendments.

As for the reasonableness or otherwise of the programme, the only reasons for non-acceptance are given in Clause 31.3. If you non-accept for any other reason, that’s a compensation event.

Thinking practically, if the reduction of Scope was instructed on Monday (and again, I’m assuming its properly instructed by the Service Manager, as the Client has no power to change Scope) its unrealistic to expect that a programme issued on Tuesday would reflect it.

I also suspect that a programme showing the original Scope will actually be quite useful in assessing the compensation event for Scope change - otherwise you are using a Tender Programme. The Tender one is better than nothing, but not great.

To be honest, this sounds like the subject of an Early Warning Meeting. Set that up and both sides can talk it through, understand respective positions / concerns, and get to a resolution which suits, and agree how you are going to - quickly and efficiently - get the CE for the Scope change implemented.