Remobilisation vs prelim recovery CE

Our contract works has over run for no fault of our own which the client accepts as their fault. We had an element of works that should have been completed in mid may but requires a revisit in august to complete.

We’re in the process of pricing and agreeing the CE for re-visit. The CE is prelim heavy due to the nature of the works (night time working, cranes, access plant…). It has become apparent as we’ve worked through the main body of the works we’ve utilised all the prelim allowances within activity schedule (night time supervision, cranes, access platforms) as we underestimated the whole contract works

Client recognises there are remobilisation charges and there are requirements for additional supervision but are querying the cost for additional plant because we cannot demonstrate that certain items of prelims are associated to this task as we’ve claimed 100% against them in previous applications (We weren’t aware of this issue at the time of applications and overclaimed to help with cash flow because we utilised them).

Are we entitled to price the revisit with the full prelims requirements? We’re on option a scc

It is difficult to give you a direct answer without knowing some more detail.

The assessment of the CE should be the change in Defined Cost + fee due to the compensation event itself. Also the time effect should be assessed as the change in planned Completion due to the event.

If you are therefore able to demonstrate that the revisit will incur you in additional costs to that you would have incurred had the work not been delayed then that forms part of the assessment. So for example if you can show the craneage is additional ie you would have been able to complete the work at the time with the equipment you had on site, then that is cost due to the change. What you have include within your prelim allowances or applications is not really relevant. The principle of compensation event is to put you in no worse or better position then had the change not occurred.

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