What qualifications can you put into a CE quotation?

I represent the Contractor on a NEC3 Option A contract.

1 Like

I assume that the CE in question is under the NEC3 ECC contract. The answer is slightly different for some of the other forms of contract within the NEC suite. NEC3 doesn’t use the terminology of “qualifications” for CE quotation, but the NEC contract does allow the Project Manager to include “assumptions” within the instruction to submit a quotation (Cl. 61.6). An incorrect assumption is assessed as a new CE (Cl. 601.(17), so is broadly equivalent to the PM qualifying what he wants the Contractor to include within his quote. Please note the Contractor should not set out caveats, assumptions or qualifications within his quotation, as the contract doesn’t recognise this. It is the PM that must set out the assumptions. Also please note that all CE quotations are fixed price and not normally adjusted for incorrect forecasts (Cl. 65.2).

Totally agree with Chris’s comments it is for the Project Manager as the Employers agent under the contract to decide and be clear what is included for within a quotation. The quotation must include for the full impact of the compensation event cavearted quotes i.e - this only covers the direct costs are not acceptable. If the process is not followed then the whole ideas of greater certainty of outcome just unravels.