HI. Need help. PM has rejected the below compensation events! Do i have a case if i take it to an adjudicator/court?
Compensation Event #1
Clause: 60.1
The following are compensation events.
(1) The Project Manager gives an instruction changing the Works Information except
· a change made in order to correct a Defect or
· a change to the Works Information provided by the Contractor for his design which is made either at his request or to comply with other Works Information provided by the Employer.
Event:
As per the definition of “work information” as defined in;
‘‘11.2(19) Works Information is information which either
· specifies and describes the works or
· states any constraint on how the Contractor Provides the Work sand is either
· in the documents which the Contract Data states it is in or
· in an instruction given in accordance with this contract.’’
We would like to raise the refusal by the Employers Client (KPC) to allow the contractor to use mechanical excavation as the primary means of excavation quoted for in the tender document and listed in the method statement attached to this document, which was accepted by the client. This inability to use mechanical excavation should have been listed by the client under ‘constraints on how the contractor provides the work’, allowing for the contractor to effectively price for a different method of delivering the works.
Compensation event #2
Clause: 60.4
The following is a compensation event;
A difference between the final total quantity of work done and the quantity stated for an item in the Bills of Quantities is a compensation event if
· the difference does not result from a change to the Works Information,
· the difference causes the Defined Cost per unit of quantity to change and
· the rate in the Bill of Quantities for the item multiplied by the final total quantity of work done is more than 0.5% of the total of the Prices at the Contract Date
Event:
There has been a clearly documented change in the BoQ that is well over the 0.5% threshold provisioned for by the NEC3, which has not resulted in a change of works information, and has had a clear effect on defined cost as tendered for by the contractor. As provisioned for in clause 60.7, the contractor, when pricing, can assume that the quantities provided are correct, and price his offer accordingly. The final change in the BoQ has been well over 35%.
Hi Eric
I would not answer your questions in an open forum on the basis of such a brief outline.
I would need to see the whole picture and look at all the evidence before forming an opinion on the strength of your case.
Best pay for some professional advice.
Best regards
Mike Testro