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NEC ECC: Are people cost changes a compensation event in Option B?

+1 vote
172 views
In a tender the works are measured using NRM2. This details preliminaries (people cost). Would changes to these be a compensation event?

A Contractor could choose to allocate people between jobs to a site when they are not required. How could a client avoid paying for this assuming the works have not changed?

A Contractor may not provide the levels of people and equipment stated in the BoQ. Again how could this be avoided?

Does this option only refer to the physical works becoming a compensation event if the actual quantities change from the BoQ amounts?
asked Jul 20 in NEC3 Compensation Events by n.forester (130 points)  
   

1 Answer

+1 vote
It is best if answer your last question first.

And the answer is 'Yes', of all the things listed by you, it is only a change in quantities under option B clause 60.4 or 60.5 which may cause a compensation event due to change in quantities.

I am not familiar with NRM2, so all I can say is that a change in People costs MAY cause a change in how a compensation event is assessed in terms of the rates that people are charged at. Having said this, under the priced based options A and B, if the Contractor references an input cost at tender as a Defined Cost, then this is the rate used for CEs thereafter. Not knowing NRM2 or how this was referenced I cannot say for certain though.

For your points 2 and 3, these are essentially Contractor risks, so will not affect how much you pay.
answered Jul 20 by Jon Broome (23,720 points)