We have introduced proposed Contractor Assumptions to cut through a big issue that still has not been specifically resolved contractually. Project Manager can state assumptions on which to base the quotations but there is no way for the Contractor to propose assumptions. Where historically they have included these within their own quotations stating their own assumptions, many have believed (incorrectly) that these become PM assumptions if they accept the quote. That is not the case. So within FastDraft, we have brought this to a head whereby the Contractor can propose an assumption for the PM to accept. If they do not accept or do not respond it simply means the Contractor will price the risk. This is a chance though for the Contractor to submit a more sensible quotation if the PM is willing to agree to the proposed assumptions – which FastDraft then confirms are now PM assumptions under clause 61.6.
Creating Contractor Assumptions
The contractor can suggest an assumption which they believe is necessary to be able to give a sensible quotation. The Register on this tab will show a list of any assumptions issued for acceptance and their relevant status. To submit an “Assumption” form the following is needed to be completed:
- The subject, Prices,
- Select compensation event – this will show the live (and only) compensation events that this assumption could be applicable to. Select the relevant CE.
- The decision required by – state the date by which an answer is needed which should be a few days before the quote is due to allow the Contractor to complete the quotation accordingly. Without the agreement of these suggested assumptions, the Contractor will instead by pricing the risk. This is, therefore, the chance for a more sensible quotation to be submitted, all be it by the Employer retaining that risk (so decreasing cost certainty).
- Details – description of the assumption being suggested and the reasons for it. These should only be for the type of risk that would otherwise be very difficult to price.
Once completed this will create a draft letter to check. It also allows the option for an attachment to be added if relevant. Once ready to submit click on “Communicate Notification”. Once submitted Project Manager can then respond by using “Acceptance” tab to then confirm if that assumption has been accepted or not accepted completely with comments.