Expert advice in minutes not days. Register it's free and ask your first question now.
  • Register
ReachBack is our free community help desk for construction professionals. A library of high-quality questions from real users with answers delivered and curated by a panel of industry experts.

4,132 questions

4,298 answers

475 comments

33,914 users

Register its Free

Download here

NEC3 ECC: Can the quantities of a CE for Option B be remeasured?

0 votes
145 views
For an Option B, the changed Prices is assessed in the form of change to the BQ. Does it mean the changed Prices would be subject to change due to remeasurement of the CE quantity, or the changed Prices is firm (ie the CE quantity would not be remeasured?)
asked Mar 9 in NEC3 Compensation Events by Anoy!  
   

1 Answer

0 votes
Clause 60.4 states that if a line item changes by more than 0.5% of the total of the Prices then the remainder is assessed as a compensation event. Put in simple terms, for a £1mil project, a single item has to change in quantity by the equivalent of more than £5k. Any extra over would then be assessed as a compensation event using Defined Cost i.e. actual cost they will incur.

This prevents Contractors "loading" bill rates at tender stage (as if) and taking advantage of an increased quantity, but also protects Contractor if they have undervalued an item which the Employer then decides they want much more of. This is about the fairest rule I think that either Party could expect.
answered Mar 9 by Glenn Hide (27,660 points)  
Thanks Glenn, maybe I have not asked properly, my question is indeed, if a CE was accepted by PM, then then changed Price would be in the form of change to the BQ. So whether the quantity in changed BQ for the CE subject to remeasurement, or the changed Prices due to the CE deemed to be a firm amount such that the quantity and rate of the CE BQ item would not be subject to further change?
If you have triggered the switch point in 60.4, the remaining increase in quantity (or decrease for that matter) is then assessed at Defined Cost (i.e. actual forecast cost), but only the extra over. Otherwise you use the bill rates.