NEC Option B Contract

R
rayhan khan 👤 Member for 15 years 7 months

Hi Everyone,

I've just had job come up involving building some flats, the problem I have come accross is that during earthworks we found a underground bunkers, due to us not knowing this and the project manager not informing me. The client is now refusing to pay for the removal of the bunkers.

The job was priced uup under NEC3 Option B, does anyone know what I can do about this, I dont think that I should pay the expense of removing them as it will cost me more than the jobs worth, any advise would be greatley appreciated.

Thanks

M
Mike Testro 👤 Member for 20 years 5 months

Hi Rayan

You are stuck with option B so don't try to change it.

The normal time period for notification of a compensation event is 8 weeks so don't hang about.

Best regards

Mike Testro

R
rayhan khan 👤 Member for 15 years 7 months

Mike,

Thank you for the comments, they are very useful to know, on this basis I am thinking of asking the client to consider using NEC3 Option C, do you think this will be a better option as its based on a activity schedule?

Also if the client was to stick to his guns and say its option B we are using and thats that! are there any time limits or clauses I could use to compensate me?

M
Mike Testro 👤 Member for 20 years 5 months

Hi Rayan

I have just googled this on Option B

Option B: Remeasurement priced contract with bill of quantities

The Employer provides a bill of quantities which is priced by the Contractor. The contract price is the

sum of prices for all items in the bill which may include lump sums for certain items. When the work is

done, if it is found by remeasurement that the estimated quantity is not correct, it is corrected and

payment is made to the Contractor to reflect the actual work carried out. Under this option, unlike

Option A, the Employer takes the risk of the correctness of the quantities.

Option B would normally be used where the risk of change in quantities is relatively high. It is not

appropriate for design and build contracts since the Contractor is responsible who designs and

prepares the detailed design and plans.

So unless there is something else in the contract that says the contractor takes all risks in underground obstructions you shouls apply for a compensation event to the Project manager.

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