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NEC3 ECC: Under NEC Option F, is Subcontracted work within the Contractor's identified works a disallowed cost?

+1 vote
Contractor has identified the works that are to be undertaken by him directly under Option F and those which are packages for Sub Contract works.
There are items within the works identified as by the Contractor which are being subcontracted. Should these be considered as disallowed costs? They are minor pieces of work such as ground survey and sub soil survey. They were in with the Preliminaries and not identified as Sub Contracted Work Packages.
Not much guidance around on Option F and I suspect that the Contractor was in the dark about the Contract niceties.
asked Mar 1, 2017 in NEC3 Payment by John   1

1 Answer

+1 vote
Reading the contract as :
- the Contractor has tendered 'prices' (in italics)  for "work which the Contractor will do himself" (in the Contract Data Part 2); and
- a Disallowed Cost "is a payment to a Subcontractor for - work which the Contract Data stated the Contractor will do himself"
then it is pretty clear that it is a Disallowed Cost.

The question becomes 'is the Contractor paid at all for this work now ?'
answered Mar 1, 2017 by Jon Broome (25,720 points)