I can only assume that the PM has decided that the Subcontract part of the Defined Cost assessment is not considered to represent 'open market or competitively tendered' prices. This could be very difficult to prove either way, however, for a specific package of work under a CE and whether the above principle applies to a 'resident' Subcontractor on Site or to a 'generic' Subcontractor (who would obviously price associated preliminary costs).
If the PM instructs a revised quotation then they would have to explain their reasons, so hopefully they would then say why they think the Subcontract quotation is too high.
Reading between the lines this issue might be caused by a budgetary constraint, although that is not your problem and shouldn't affect the quotation assessment.
If the PM instructs a revised quotation then they would have to explain their reasons, so hopefully they would then say why they think the Subcontract quotation is too high.
Reading between the lines this issue might be caused by a budgetary constraint, although that is not your problem and shouldn't affect the quotation assessment.