Clause 60.4 states that if a line item changes by more than 0.5% of the total of the Prices then the remainder is assessed as a compensation event. Put in simple terms, for a £1mil project, a single item has to change in quantity by the equivalent of more than £5k. Any extra over would then be assessed as a compensation event using Defined Cost i.e. actual cost they will incur.
This prevents Contractors "loading" bill rates at tender stage (as if) and taking advantage of an increased quantity, but also protects Contractor if they have undervalued an item which the Employer then decides they want much more of. This is about the fairest rule I think that either Party could expect.
This prevents Contractors "loading" bill rates at tender stage (as if) and taking advantage of an increased quantity, but also protects Contractor if they have undervalued an item which the Employer then decides they want much more of. This is about the fairest rule I think that either Party could expect.