They've made their own assessment and it's far too low
We sent the quotation, and instead of accepting it the main contractor assessed the event itself, at a fraction of what it cost.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
What's happening?
NEC only lets your main contractor make its own assessment of an event in limited cases. It can do so where no quotation arrived in time, or where it decides your quotation was wrong and does not ask for a revised one. It can also do so after a programme failure the contract names. Once notified, its assessment is implemented, which means it becomes the agreed change. The way to change it then is the subcontract's dispute procedure, not another quotation.
Own assessments tend to cut the same things. People are priced below what the records show, equipment hire is shortened and forecast cost is ignored. The Fee is applied to less than it should be, and a bare figure comes with no details.
Each cut can be tested against the Schedule of Cost Components, the contract's list of what counts as cost, and your records. But resending the original quotation tests nothing, because it no longer has any standing, and the low figure stands.
The solution
Take the assessment apart line by line against the cost rules and your records: which people, which hours, which equipment, what forecast and what Fee. Compensation Event Claim rebuilds the event from the Schedule of Cost Components. It separates the wrong cuts from the fair ones, and prepares the reasoned answer in your name.
If agreement fails and the difference justifies it, the rebuilt figure becomes the money side of an adjudication under your subcontract. Compensation Event Loss Prevention then makes sure future quotations go in on time and in the contract's cost shape. That removes most of the grounds for an own assessment.
Example
Illustrative example. The scenario and figures are invented.
The facts
A drylining subcontractor quotes £52,000 for a compensation event covering a redesigned ceiling on two floors. The main contractor decides the quotation is wrong, does not ask for a revision, and notifies its own assessment of £29,000 with a one-page summary.
What happens
- The assessment is set beside the quotation line by line: people, equipment, materials, subcontracted work and the Fee.
- The main contractor has priced the fixers at £6 an hour below the payroll records. It has also forecast 900 hours where the allocation sheets show 1,240 actually worked.
- It has left out the access tower hire for the weeks the work ran, and applied the Fee to the materials only.
- One cut is fair: the quotation priced the board at list price, and the invoices show a discount.
- The rebuilt assessment comes to £47,500. The answer goes to the main contractor with the payroll, the allocation sheets, the hire records and the invoices attached.
The event in figures
| Position | Amount |
|---|---|
| Quotation | £52,000 |
| Main contractor's own assessment | £29,000 |
| Rebuilt from the records | £47,500 |
| Agreed | £45,000 |
The outcome
After two meetings the parties agree £45,000 and record it in writing, without adjudication. Answered with a resent quotation, the £29,000 would have stood.