NEC3 main option C. In an acceleration quote should the contractor include a saving for prelim costs that will not be incurred due to a result of bringing forward the completion or key date? I.e original period on site 52 weeks, employer asks for 8 week acceleration, therefore only 46 weeks cost incurred by contractor…
In short the NEC3 is silent on how the Contractor prepares his quotation for acceleration, so while there is a certain logic to your argument, it is not guaranteed to result in the answer you want. The quotation is not based on the same rules as assessing CEs.
I agree with Chris’s answer. I add :
- Acceleration under NEC3 means bringing forward the contractual Completion Date. If a compensation event occurs and the Project Manager wishes to keep Completion and hence the Completion Date the same, then this can be done throught the rigour of the compensation event process. Once the Completion Date has gone backwards, then it cannot be brought forward via the compensation event process.
- for a quotation for acceleration under clause 36, the Contractor can include whatever he likes in the quotation for acceleration including a very high profit. The Project Manager though is free to reject this and does NOT have any ability to tell / instruct the Contractor what to quote or make his own assessment. In reality, there will be probably be a commercial negotiation to reach agreement. This is very much the common law position, the only difference is that NEC3 allows the PM to accept the Contractor’s ‘offer’ on behalf of the Employer through the contract mechanisms as opposed to the Employer and Contractor, as legal entities, signing a Supplementary Agreement modifying the contract.
Jon has hit the nub of the issue it is effectively a commercial negotiation