Construction of a new factory is proceeding well using an NEC3 ECC Option C contract. In December, the Project Manager asks the Contractor for a quotation for the proposed construction of an extra car parking area during the following February, when access to this area of the site can be given.
The Contractor’s quotation of Â£150,000 (as a ˜change to the prices’) and a four week delay to the Completion Date has been accepted by the Project Manager since the work will delay the critical path.
The PM has changed the Works Information and instructed the Contractor to carry out the work. Access is provided on 2nd February as agreed and the extra parking area is constructed. The weather is unusually good and the work is completed in three weeks. Invoices and records show that the Contractor actually spent about Â£130,000.
i) Can the PM ask for a quotation for a proposed instruction? If so what does the contractor do next?
ii) The contractor had built in to his quotation a risk allowance for ˜poor February weather’. Was the PM correct to accept this?
iii) How does the PM assess the new Completion Date?
Later, the PM suggests changing the new completion date to ˜correct it for the one week saved’. What response should the contractor make?
iv) Explain in detail the derivation of how much and when the Contractor will be paid.