An NEC4 proposed instruction lets the Project Manager price a change before deciding whether to make it. The Project Manager asks for a quotation, says by when the instruction may be given, and then decides. Nothing changes on site unless and until the instruction is actually given (clause 65).
The route existed in NEC3 at 61.2 and 62.3, but NEC4 gives it a clause of its own and adds a compensation event. This page covers the NEC4 ECC. For other edition changes, see the NEC4 contracts guide, and for quotations in general, see quotations for compensation events.
The steps
- Instruction to quote (65.1). The Project Manager instructs the Contractor to quote for the proposed instruction, stating the date by which it may be given. The Contractor doesn't act on the proposal.
- Quotation (65.2). The Contractor quotes within the time allowed, and the quotation is assessed like a compensation event. Published commentary on the ECC gives three weeks; the ECS gives two.
- Reply (65.2). The Project Manager answers by the stated date, in one of three ways shown below.
- Afterwards. If the quotation isn't accepted, the Project Manager can still give the instruction, notify it as a compensation event, and ask for a quotation in the usual way (65.3).
The three replies
| Reply | What it means | What follows |
|---|---|---|
| Revised quotation requested, with reasons | The Project Manager wants another price | The Contractor quotes again |
| Instruction given, notified as a compensation event, quotation accepted | The change goes ahead at the quoted price | The event is implemented |
| Quotation not accepted | The change doesn't go ahead on this basis | 60.1(20) applies if this is notified |
| No reply by the stated date | The quotation counts as not accepted (65.2) | It doesn't count as accepted, unlike a normal quotation |
That last row is the trap. For a normal compensation event quotation, silence can lead to treated acceptance under 62.6. For a proposed instruction, silence means not accepted. A Contractor who treats the two the same could start work with no entitlement.
NEC3 compared
| Point | NEC3 ECC | NEC4 ECC |
|---|---|---|
| Clause | 61.2 to ask, 62.3 for the reply | 65 |
| Date for the decision | None stated | Stated in the instruction |
| Reply period | 2 weeks | By the stated date |
| A quotation that isn't accepted | No compensation event | Compensation event, 60.1(20) |
Why does 60.1(20) exist?
Pricing a change that doesn't happen still costs time and money. A compensation event gives the Contractor a route to raise the effect of being asked to quote. The clause itself doesn't state a value, and the assessment follows the normal rules, so keep a record of who worked on the quotation and for how long. There's more on the 60.1(20) page.
A worked example
A fictional Option A contract for a leisure centre, with illustrative figures. The Client is thinking about upgrading the pool hall lighting, and has no budget approved yet.
- 10 May: the Project Manager instructs a quotation under 65.1, stating that the instruction may be given by 21 June.
- 31 May: the Contractor quotes an increase of £62,000 to the Prices and no delay, with a note that the supplier's price lasts until 30 June.
- 18 June: the Client's board approves the upgrade.
- 20 June: the Project Manager issues the instruction, notifies it as a compensation event and accepts the quotation. The Prices go up by £62,000.
If the board had refused, the Project Manager would have notified that the quotation was not accepted, and the Contractor would then look at its entitlement under 60.1(20). If the Project Manager had done nothing, 21 June would have passed, the quotation would have lapsed as not accepted, and the Contractor would not install the lighting.
Other routes to a similar result
Two more NEC4 routes can lead to a proposed instruction.
- Contractor's proposals (clause 16). The Contractor can propose a Scope change to reduce what the Client pays. One of the Project Manager's replies is to instruct a quotation for a proposed instruction (16.2). Published reviews give four weeks for that reply on the ECC.
- Whole life cost (Option X21). This separate Option covers proposals that benefit the cost of operating and maintaining the asset.
What people get wrong
- Starting work on a proposed instruction. It isn't an instruction, and the clause says so.
- Stating no date. The date is what sets the reply period. Without one, nobody knows when the quotation lapses.
- Leaving out reasons. A request for a revised quotation includes the reasons.
- Quoting without a time limit in mind. A long decision window can leave the Contractor holding a price that's going out of date. Say so in the quotation, and raise it early.
- Forgetting the instruction route still exists. See Project Manager instructions for how each kind of instruction works.
Related guides
- NEC4 Contracts: A Complete Guide
- NEC4 Terminology Changes
- NEC4 Contract Data Explained
- Learning NEC4: What Your Team Needs to Know
- Final Assessment of the Amount Due in NEC4
- Dispute Resolution Changes in NEC4
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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.