Function of the Price List. Clause 54.1 in Option A states: “Information in the Price List is not Service Information”. This confirms that instructions to do work or how it is to be done are not included in the Price List but in the Service Information. This is further confirmed by Clause 20.1 which states, “The Contractor Provides the Service in accordance with the Service Information”. Hence the Contractor does not Provide the Service in accordance with the Price List. The Price List is only a pricing document.
Function of the Price List. In this Option the Price List (if any) is used only as a means of forecasting the final outcome. Preparing the price list (if any) It will be assumed that the tendering contractor has read Pages 14 and 15 of the TSC3 Guidance Notes before preparing the price list. Items in the price list may have been inserted by the Employer and the tendering contractor should insert any additional items which he considers necessary. Format of the price list Entries in the first four columns in the price list in section C2.2 are made either by the Employer or the tendering contractor. For Option E the Price List is used only for forecasting Defined Cost. If the price list includes an amount for the item which is not adjusted if the quantity of work in the item changes, the tendering contractor enters the amount in the Price column only, the Unit, Expected Quantity and Rate columns being left blank. If the price list includes an amount for an item of work which is the rate for the work multiplied by the quantity completed, the tendering contractor enters the rate which is then multiplied by the Expected Quantity to produce the Price, which is also entered. If the price list includes an item proportional to the length of time for which a service is provided, a unit of time is stated in the Unit column and the expected length of time (as a quantity of the stated units of time) is stated in the Expected Quantity column.
Function of the Price List. Clause 54.1 in Option A states: “Information in the Price List is not Service Information”. This confirms that instructions to do work or how it is to be done are not included in the Price List but in the Service Information. This is further confirmed by Clause 20.1 which states, “The Contractor Provides the Service in accordance with the Service Information”. Hence the Contractor does not Provide the Service in accordance with the Price List. The Price List is only a pricing document. Link to the Contractor’s plan Clause 21.4 states “The Contractor provides information which shows how each item description on the Price List relates to the operations on each plan which he submits for acceptance”. Hence when compiling the price list, the tendering contractor needs to develop his first clause 21.2 plan in such a way that operations shown on it can be priced in the price list and result in a satisfactory cash flow in terms of clause 11.2(17). Preparing the price list Before preparing the price list, both the Employer and tendering contractors should read the TSC3 Guidance Notes pages 14 and 15. In an Option A contract, either Party may have entered items into the price list either as a process of offer and acceptance (tendering) or by negotiation depending on the nature of the service to be provided. Alternatively the Employer, in his Instructions to Tenderer’s or in a Tender Schedule, may have listed some items that he requires the Contractor to include in the price list to be prepared and priced by him. It is assumed that in preparing or finalising the price list the Contractor: • Has taken account of the guidance given in the TSC3 Guidance Notes relevant to Option A; • Understands the function of the Price List and how work is priced and paid for; • Is aware of the need to link operations shown in his plan to items shown in the Price List; • Has listed and priced items in the price list which are inclusive of everything necessary and incidental to Providing the Service in accordance with the Service Information, as it was at the time of tender, as well as correct any Defects not caused by an Employer’s risk; • Has priced work he decides not to show as a separate item within the Prices or rates of other listed items in order to fulfil the obligation to complete the service for the tendered total of the Prices. • Understands there is no adjustment to items priced as lump sums if the amount, or quantity, of work within that item later turns out to be differen...
