Assignment task:
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 the Client states performance criteria for the mechanical and electrical installation that the Contractor's design is required to comply with. The Scope states that the Contractor is required to design these parts of the works.
The Scope provided by the Contractor for its design does not fully comply with the performance criteria. The Contractor says, that by accepting the tender, the Client has agreed to the revised design and that this is what the Client will get. Apparently, any change to this would constitute a compensation event.
a. Is the Contractor correct? How should this be dealt with by the Project Manager?
On the same project a further argument has emerged. This time the Scope provided by the Client states that the air conditioning unit should perform 9 air changes per hour. Elsewhere, in another document, which is part of the Scope provided by the Client, it states 7 air changes per hour.
b. How should the Project Manager manage this and how should it be dealt with financially?
c. The Contractor later admits that it has priced for 9 air changes per hour. Does this affect how any compensation event is assessed?
d. If this was an Option C contract, how would the impact of this differ from an Option A contract?
To compound problems, the Scope provided by the Client did 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. The Contractor's view is that specifying a particular colour would now be a compensation event. Is that correct? Also, how should the Project Manager deal with this?