NEC 3 - Option B: We (the Project Manager), instructed the Contractor to carry out some new additional Survey Works, under Cl.14.3. The additional work took 5 weekends to complete, the Contractor was late submitting a quotation (arriving after weekend 4), in addition there was no impact programme submitted to the Project Manager. The Contractors quotation was incorrect as it used rates and items which were not in the signed Contract agreed “Schedule of rates” (to be used for assessing CE’s). Based on this incorrect quotation, I carried out a Project Managers Assessment based on Cl.64.1 (the first three bullet points being relevant). The Contractor has claimed this is incorrect and referenced Cl.65.2. At the time of the Project Managers Assessment the Compensation Event had not been implemented. Cl.65.2 would appear to apply to implemented Compensation Events, it’s intent is to stop the PM later trying to revise an implemented Compensation Event once the works are complete. Who is correct here ?
As you say, cl 65.2 relates to implemented compensation events. I’m not clear what the Contractor is suggesting in respect of cl 65.2 but it cannot relate to the assessment process itself.
If the Contractor did not submit a compliant quotation then you are within your authority to make a Project Manager’s assessment which becomes implemented when you notify the Contractor of the assessment.
So the short answer is, you are correct. The Contractor can however challenge the assessment by dispute or further dialogue should you want to.
Just to add to Dave Bates’ response, it is actually not a case of the PM being ‘within their authority’ to make a PM’s assessment.
Clause 64.1 first bullet REQUIRES the PM to make an assessment of a CE if the Contractor has not submitted a quotation and details of it within the time allowed.
If the Contractor had not submitted its quotation within three weeks of the instruction, the PM should have given notification that it would be proceeding to make its own assessment.