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NEC3 ECC: Rates and prices instead of defined cost

+1 vote
341 views
clause 63.14 in Option A  appears in all the other contract forms, Options B, C etc albeit under another appropriate clause.

We have been in the habit of selecting individual CEs in our Option A contract using this clause as opposed to the Shorter schedule.

Now however, we have been advised that this practice is incorrect. Clause 63.14 cannot be used selectivley. Either all CEs should be dealt with under 63.14 or None at all - i.e using the shorter schedule.

Is this also you opinion?
asked Nov 12, 2015 in NEC3 Compensation Events by AntoniaN (370 points)  
   

1 Answer

+2 votes
No this is not correct at all.

The contract states that by agreement rates (i.e. activity schedule rates or B of Q rates) can be used to assess a compensation event. This is on a case by case basis and no precedent is set if you use one or the other for the first assessed compensation event.

It would otherwise be a pretty pointless provision, as sometimes the Parties will want to use them for ease and other times not - which takes them down the full defined cost/schedule of cost component route.
answered Nov 12, 2015 by Glenn Hide (24,930 points)  
This is what I/we also always understood - thank you for the confirmation.