Would have been better if the Subcontractor had been given Contractor assumptions on which to base their quotation and allowing a forecast (and if necessary a series of forecasts as time moves on). It is always very dangerous to do the quotations retrospectively As it stands the Subcontractor should submit their quotation justifying what they believe they are entitled to, and for the Contractor to make their own assessment and making it implemented. The Subcontractor can then decide to take this to adjudication if they do not agree.
You would like to think that the Parties can get round the table to avoid such a dispute, but there may be no alternative if they both believe they have made the correct decision.
I would agree with Dave that at high level they are wrong to simply "disallow" the costs , but to what value they should be will come down to detail.
You would like to think that the Parties can get round the table to avoid such a dispute, but there may be no alternative if they both believe they have made the correct decision.
I would agree with Dave that at high level they are wrong to simply "disallow" the costs , but to what value they should be will come down to detail.