PMI, instructions and quotes

Hi,

We are a subcontractor on an NEC 3 amended option A subcontract. We omitted metal decking from our quotation and the contract docs also state it is omitted. We’ve since received an instruction to price the decking to which we have quoted and priced. We’ve received no acceptance. We’ve made commercial decisions in the past to do trimmer steels and other work that gets added in via drawing revisions “on account” i.e do it and get paid later, but this one I feel is different and the value is sufficiently high enough to not proceed until an acceptance is issued.

  1. Is there a deemed acceptance of our quote?
  2. Is a PMI technically needed as the vehicle to convey an acceptance?
  3. Are we right to wait for an acceptance?

Thanks

1 Like

If you have received an instruction (PMI) under clause 14.3 then there is an obligation for you to comply with it, clause 27.3, unless you don’t consider it to be valid in which case you should have informed the Contractor. I don’t think that is the case given you have quoted.

You are obliged to comply and not to wait for acceptance.

If the Contractor has not reply to your quotation within the stated timeframe then you can notify them under clause 62.6 and if the contractor does not reply within the further period then the quote is deemed accepted. The quote is not deemed accepted in any other way.

A PMI is not needed for acceptance, acceptance is via the CE process, clause 62.3 (62.6).

1 Like

hi Dave,

Thank you for this. Much appreciated. Can you just highlight the “don’t consider it to be valid” is there text in the standard form that says we can challenge the PMI? I thought you could only do this if it was impossible or illegal? (17.2)

1 Like

Hi

sorry my words were clumsy. The PMI needs to relate to the (subcontract) works you have been contracted to do eg if you are contracted to do steelwork then an instruction to do some drainage would not be valid under the subcontract. The PMI does seem to relate to the works, you have quoted for it. Hope that helps.

1 Like

Thank you. Appreciated.

1 Like

Good morning all,
I don’t think I concur with some of the opinions expressed by other commentators.

From what I gather, the instruction you have received is to price only, since you have provided the quotation, you have “obeyed” the instruction.

To go further than that and implement is to go beyond the boundaries of the instruction.

There is a period for reply/response within which the Contractor should tender his response - if that period has now expired you can write to “him” and notify him that you need a response.

There is a straight forward procedure for dealing with quotations/variation/change.
In your shoes, I would be weary of pressing the proverbial button without proper sanction.