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NEC3 ECC: 11.2 (22) - Inclusions of preparing a quotation

+1 vote
68 views
Under NEC3, the Project Manager has rejected compensation events and is carrying out his own assessments for compensation events on the basis the Contractor has included amounts for people for preparing a quotation within his assessment.

What does 11.2(22) extend to? Is it limited for example to preparing the quote and arranging for prices etc from supply chain? Or does it also include activities such as carrying out additional procurement, setting out, raising EWNs / NCEs?
asked Jul 13 in NEC3 and NEC4 Contracts by anonymous  
   

1 Answer

+2 votes
The literal reading of clause 11.2(22) is the former sentence and I have seen legal texts which conform this.

Additional procurement, setting out are part of the compensation event and therefore part of additional Defined Costs PROVIDING the Contractor is incurring additional Defined Costs. I.e. if salaried people are doing this task, not getting overtime and not being in the Working Areas for longer as there is no EoT, there is no additional Defined Cost.
answered Jul 14 by Jon Broome (23,650 points)