Frequently Asked Questions


In a project using ECC option B (priced contract with bill of quantities) the bill of quantities was issued to tenderers to price. The successful contractor returned the priced bill of quantities but in a different format so that it aligned with its subcontract packages. In rearranging the bill of quantities items the contractor missed off some measurable works, according to the method of measurement. The works information has not changed but is it correct to assume this becomes a compensation event under clause 60.6, even though it is an error originally made by the contractor?

You are correct; this would be a compensation event under clause 60.6. Further, when assessing this compensation event, the contractor is assumed to have taken the bill of quantities as correct (clause 60.7). In the circumstances the changes made by the contractor to the bill of quantities were, in effect, a qualification to its tender. Your client should have treated it as such and checked it very carefully before accepting the tender. Once accepted, the risks of such errors pass to the employer

Back to FAQs