We have been asked to provide several quotations under clause 61.2 (Proposed Instruction)
Is there a limit on how long these quotations are valid for? Some are several months old in which the costs have changed due to rising steel prices. We are at risk if the client decides to accept these at a later date.
I believe Clause 62 only deals with Quotations for Compensation Events so not managed under this process
This is a common problem under NEC3 contracts and the validity of a quotation for a proposed instruction under sub-clause 61.2, unlike NEC4 where the Project Manager is required to state the date by which the proposed instruction may be given, so effectively ‘time expires’ the matter.
A possible way to overcome this is to state an ‘assumed dividing date’ which the quotation assessment is based upon, to ‘qualify’ the assessment. This would also allow appropriate risk allowances for cost and time to be included with the quotation assessment.
If the Project Manager consequently instructs the matter as a compensation event under sub-clause 61.1, then a quotation has already been submitted and the PM would respond accordingly under sub-clause 62.3. This would include the option to instruct the submission of a revised quotation.
Although there is not a formal process within the compensation event procedure, it is always worth discussing such matters prior to the submission of a quotation, not least to align the understanding of the parties as to what is actually required to be priced.
Another way of viewing this is an analogy with an offer under contract law which is valid for a ‘reasonable’ time in law given the circumstances and what is being offered … which obviously causes discussion around what that time is.
Consequently, people - like my local builder for external insulation - often date limit it i.e. it is open for one month. I don’t see any reason why that is not valid under NEC, except if the date limit is too restrictive e.g. a day !