NEC3 ECC: Option B - Remeasurement

NEC3 and NEC4 Contracts Compensation Events
1

When the main item on the BoQ is remeasured at the end of the job, and it is found to significantly reduce the value of the project (in our case by 40 - 50 percent ) can a compensation event be made ?

We are a dredging company and have got halfway through the job to find that only half the amount of mud in the harbour exists and as we are on an m3 rate for removing the mud, the total quantity has been massively reduced .

Our biggest issue is that the mud is not as deep as was expected in the target depths referred to in the contract data and drawings .

As the project is drawn massively short we shall lose out on other work that we could not tender on and now there is a great shortage of work in our area.

1 Like
2

If you look at clause 60.4 then it is a compensation event if the final quantity done compared to the item stated in the bill is more than 0.5% of the total of the Prices then this difference would be assessed as a compensation event. (i.e. if on a £1mil scheme a line item changes by more than £5k then any under/extra over would be assessed as a CE. If you can prove that only moving half the mud would cost more then this would be considered as a compensation event (but only once you have reached that switch point, and then only for the extra over).