A new school is being constructed using the NEC4 Engineering and Construction Contract main Option...

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Accounting

A new school is being constructed using the NEC4 Engineering and Construction Contract main Option C. The defects date is 52 weeks after Completion of the whole of the works. The defect correction period is 2 weeks.QUESTION A month before the defects date, the Supervisor carries out an inspection of the school and observes that there is some flooding in parts of the car park. The finished levels of the car park do not comply with the Scope, this is causing the flooding and accordingly the Supervisor notifies the matter as a Defect. The Client does not allow the Contractor access to the car park to correct the Defect. When the Supervisor issues the Defects Certificate, the Supervisor includes a statement that the notified Defect has not been corrected.Which of the following statements best describes how the Project Manager assesses the final amount due in respect of the uncorrected Defect?Select ONE optionA Assess the cost for correcting the Defect as Defined Cost and deduct a proportion of this amount from the Price for Work to Date in accordance with clause 82.3.B Assess the cost to the Client of correcting the Defect and deduct this amount from the Price for Work Done to Date.C Obtain a quotation for reduced Prices from the Contractor for accepting the Defect and include this in the assessment of the amount due.D Assess the final amount due as normal and inform the Client that there are uncorrected Defects.E Assess the cost the Contractor would have incurred in correcting the Defect if it had been given access and deduct this amount from the Price for Work Done to Date.

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