This is NEC4 (Engineering and Construction Contract), please show the clause number in the answer. Thank you! -

Q3

During the construction of a new asset on an ECC Option A contract, there is an argument about the status of the Scope. The Scope provided by theClientstates performance criteria for the mechanical and electrical installation that theContractor'sdesign is required to comply with. The Scope states that theContractoris required to design these parts of theworks.

The Scope provided by theContractorfor its design does not fully comply with the performance criteria. TheContractorsays, that by accepting the tender, theClienthas agreed to the revised design and that this is what theClientwill get. Apparently, any change to this would constitute a compensation event.

a. Is theContractorcorrect? How should this be dealt with by theProject Manager?

[6 marks]

On the same project a further argument has emerged. This time the Scope provided by theClientstates that the air conditioning unit should perform 9 air changes per hour. Elsewhere, in another document, which is part of the Scope provided by theClient, it states 7 air changes per hour.

b. How should theProject Managermanage this and how should it be dealt with financially?

[8 marks]

c. TheContractorlater admits that it has priced for 9 air changes per hour. Does this affect how any compensation event is assessed?

[2 marks]

d. If this was an Option C contract, how would the impact of this differ from an Option A contract?

[3 marks]

To compound problems, the Scope provided by theClientdid not state that the cladding to the building should be in their corporate green colour, it merely defined the performance standards but said nothing about the colour.

e. TheContractor'sview is that specifying a particular colour would now be a compensation event. Is that correct? Also, how should theProject Managerdeal with this?

[6 marks]