Dispute and Cost Control in the Provision for Variations - a Comparative Analysis of Nec3 & Psscoc
Dispute and Cost Control in the provision for Variations - a Comparative Analysis of NEC3 & PSSCOC
A. Variations (cost control)
B. Dispute Resolution
A. Cost Control in Variations
Generally, cost control in the provision of Variations under most of the building contracts are stated in different steps. Hence, the steps can be generally divided into 3 stages which are variation notification, quotation submission and valuation based on rate, quantity or daywork. The comparison on the Variations was done under NEC and PSSCOC.
Clause 60 of NEC, defines the variations in Compensation Events base on the PM instruction on the changing of work information which is unreasonable to him.
Clause 19.1 of PSSCOC, defines the variations as “any change in the original contract intention”.
A.1 Variation Notification
In the provision of clause 61.1 of NEC, PM give instruction and the Contractor has to submit quotation on the changing decision event. Clause 61.3 states that the Contractor has to notify PM within 8 weeks from the event happened, failing which he is not entitle to claims on the cost and time implication. Under clause 61.4, PM has to reply within 2 weeks of the Contractor notification, or else the notification will be treated as acceptance by PM.
Under clause 20.2 (1) of PSSCOC, the Contractor has to carry out and comply with SO instruction even though the instruction may not a variation to the Contractor. However, the Contractor may request for variation from SO under clause 19.2 in writing within 14 days from the date of SO receipt of the instruction.
A.2 Quotation Submission
Under clause 62.2 of NEC, PM instructs the Contractor to submit his quotation and any delay to the completion date that assessed by the Contractor. However, by clause 63.2, if there is any cost saving or omission that reduce the total Defined Cost/ Contract Sum, the price are not reduces unless stated in the Contract.
By clause 19.3 of PSSCOC, SO may request the Contractor to submit
A. Variations (cost control)
B. Dispute Resolution
A. Cost Control in Variations
Generally, cost control in the provision of Variations under most of the building contracts are stated in different steps. Hence, the steps can be generally divided into 3 stages which are variation notification, quotation submission and valuation based on rate, quantity or daywork. The comparison on the Variations was done under NEC and PSSCOC.
Clause 60 of NEC, defines the variations in Compensation Events base on the PM instruction on the changing of work information which is unreasonable to him.
Clause 19.1 of PSSCOC, defines the variations as “any change in the original contract intention”.
A.1 Variation Notification
In the provision of clause 61.1 of NEC, PM give instruction and the Contractor has to submit quotation on the changing decision event. Clause 61.3 states that the Contractor has to notify PM within 8 weeks from the event happened, failing which he is not entitle to claims on the cost and time implication. Under clause 61.4, PM has to reply within 2 weeks of the Contractor notification, or else the notification will be treated as acceptance by PM.
Under clause 20.2 (1) of PSSCOC, the Contractor has to carry out and comply with SO instruction even though the instruction may not a variation to the Contractor. However, the Contractor may request for variation from SO under clause 19.2 in writing within 14 days from the date of SO receipt of the instruction.
A.2 Quotation Submission
Under clause 62.2 of NEC, PM instructs the Contractor to submit his quotation and any delay to the completion date that assessed by the Contractor. However, by clause 63.2, if there is any cost saving or omission that reduce the total Defined Cost/ Contract Sum, the price are not reduces unless stated in the Contract.
By clause 19.3 of PSSCOC, SO may request the Contractor to submit