Valid CE for the Contractor

NEC3 and NEC4 Contracts Compensation Events
1

We (the Client) specified within the Scope, that the Contractor is to use a certain piece of machinery for a section of works. Tender response was returned by the Contractor, taking this requirement into consideration in regards to cost and programme.

However now the Contractor are reporting lead-time issues with obtaining the machinery e.g: 5 additional weeks. They have fortunately mitigated the programme impact with an alternative machinery (which is accepted by the Client deisgn team), however there is small increase in costs they are claiming.

Is this a valid CE by the Contractor? After review of 60.1 CE’s, they doesn’t seem to be one available for them. Plus if they continue with the original Scope required machinery, I presume they will be at fault for any delay of contract completion, hence DD can be applied.

Kind regards

MapReader

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2

I would suggest that if the Contractor is seeking a CE for the change that you advise the assessment of the CE would be the change in Defined Cost. If providing the original machinery would have caused a 5 week delay that would have to be taken in to consideration and which may well result in a negative assessment, ie the Contractor has saved due to the change.

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3

It seems that this change arises from the fault of the Contractor i.e. ordering the specific bit of machinery too late. Therefore, while it is a change to the Scope, in order to allow this different machinery, it has a zero assessment - see clause 61.4, third bullet.

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4

Thanks both. Its a NEC4 ECSC, therefore i presume under 61.2 first bullet - “arises from a fault of the Contractor”.

Thanks

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