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NEC3 ECC: Assessing Compensation Events

0 votes
We are currently using an Option D Contract. We are currently in the process of assessing a Compensation Event due to revised design which leads to reduction in quantities. If Parties did not reach agreement that existing BOQ rate or a new rate shall be used in assessing a Compensation Event, then Defined Cost plus fee will be used to assess the CE.
Question is how do you compute the adjustment to the Price?
asked Feb 7 in NEC3 Compensation Events by Roger Blando (660 points)  

1 Answer

0 votes
the adjustment to the original Total of the Prices should be based on the change in Defined Cost + Fee due to the CE. You will therefore have to work out what the change is eg the Defined Cost + Fee to carry out 1,000 units = X the Defined Cost + Fee to carry out 800 units is Y therefore the adjustment is Y-X.

The assessment will also need to consider any effects on planned Completion and  contractor's risks.
answered Mar 12 by dave bates (5,130 points)