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NEC3 ECC: If Clause 60.4 is deleted under an Option Z Clause to a contract, does that mean the contract is not remeasureable?

+1 vote
I have an NEC3 ECC Option B  contract with a BOQ
Under Option Z - clause 60.4 has been deleted
Does this mean that the contract is not remeasureable?
asked Mar 22 in NEC3 Z clauses by James  

1 Answer

0 votes
Removing clause 60.4 does not mean it is not re-measurable - it just means that you always use the BofQ rates even when there is a major change in quantity. Clause 60.4 ring fences that only a certain amount of change in quantity do you carry on using BofQ rates - beyond that you would normally assess the extra/under over as a compensation event using Defined Cost.

It means that if the Contractor has a big fat rate they can carry on using it, and if they have under-priced it they will carry on losing more money if the quantity increases. Clause 60.4 tries to make this fair to both Parties but deleting that clause obviously cuts through this. It means that it could turn out to be a commercial advantage to either Party - but neither Party will know who will benefit before it happens - bit of a lottery! Not the first clause I would recommend to delete.
answered Mar 22 by Glenn Hide (33,040 points)