I am currently working with an ECC Option D contract where the contractor is also carrying out the detailed design. Could someone offer some affirmation or correction of my understanding of the remeasurement and the subsequent changes to the Total of the Prices (below is a conscious deviation from the NEC3 wording):
1. Errors in the bill of quantities (including quantum) are corrected as a compensation event under cl. 60.6 and 60.7. The issue of re-rating an item is dealt with by clauses 60.4 – 60.7. This effectively allows the tendered Bill of Quantities to be adjusted to align with the original Works Information.
2. Any subsequent changes made by the Employer to the Works Information (i.e. increase or decrease in scope) are compensation events under cl 60.1(1).
In addition, I’d also like to ask how changes to quantities resulting from the contractor developing the detailed design; and, encountering contractor held risks should be treated?
The two scenarios I have in mind are:
1. Value Engineering (a reduction in quantum or a reduction in cost by developing a different solution) – should an item of work that has changed during the contractor’s development of detailed design result in a full remeasure of the actual work carried out?
2. Physical conditions – If a Z clause deletes clause 60.1(12) and the contractor finds himself having to deal with an obstruction or soft spot in the ground, should this change be remeasured to reflect the actual work carried out?
I trust the above is clear and would welcome your thoughts.
1. Errors in the bill of quantities (including quantum) are corrected as a compensation event under cl. 60.6 and 60.7. The issue of re-rating an item is dealt with by clauses 60.4 – 60.7. This effectively allows the tendered Bill of Quantities to be adjusted to align with the original Works Information.
2. Any subsequent changes made by the Employer to the Works Information (i.e. increase or decrease in scope) are compensation events under cl 60.1(1).
In addition, I’d also like to ask how changes to quantities resulting from the contractor developing the detailed design; and, encountering contractor held risks should be treated?
The two scenarios I have in mind are:
1. Value Engineering (a reduction in quantum or a reduction in cost by developing a different solution) – should an item of work that has changed during the contractor’s development of detailed design result in a full remeasure of the actual work carried out?
2. Physical conditions – If a Z clause deletes clause 60.1(12) and the contractor finds himself having to deal with an obstruction or soft spot in the ground, should this change be remeasured to reflect the actual work carried out?
I trust the above is clear and would welcome your thoughts.