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Answered: NEC ECC: Who pays cost of preparing a Contractor's proposal?

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Under clause 61.2 the PM may instruct the Contractor to submit a quotation for a compensation event for a proposed instruction. Depending on which main Option the delivery agreement is based on will depend on if the Contractor will be reimbursed for preparing the quotation (A & B = no, C, D, E & F = yes). Also if the proposed instruction is not given, the compensation event will not be implemented and the Contractor will receive no payment for his efforts. Although under Options C, D, E & F he will be paid the Defined Cost plus Fee as part of the Price for Work Done to Date.

If in order to quote for the proposed instruction the Contractor will need to do a lot of work at risk, e.g. design then he should request that the PM instructs the design work as a change to the Works Information and pays for this as a CE. The Contractor can then quote for this as described above.

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