Dear Sirs
I am working on NEC3 Option B contract. Can PM give a notice of compensation event under ECC Clause 60.4?
The circumstances under which the PM 61.1, principally that the PM or Supervisor has issued an instruction. I assume you are the PM?
I don’t have NEC3 Option B to hand at present but believe 60.4 relates to a significant change in quantity, which must meet three tests including that the difference in quantity causes the Defined Cost per unit of quantity to change. I’m not sure how the PM could know if there is a change in the Defined Cost?
This is one of those difficult situations where the contract is not entirely clear - I believe there was some discussion not that long ago on one of the Linkedin discussion pages about such circumstances. I would suggest that in the first instance you notify an Early Warning and instruct the Contractor to attend a risk reduction meeting.
In principle, yes you can notify of a CE under cl 60.4 if you believe the 3 criteria of the clause are satisfied.
Thank you for your kindly advice