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NEC ECC: can TRA be transferred into a monetary value for CE?

+1 vote
A Contractor under option C has included TRA as a "cost of his risk for not being in a position to complete activities" impacted by a CE within his quotation.

I believe that he is entitled to the time not the "perceived value" of the time i.e. he has lost 4 days of TRA which he has grouped for a sequence of activities with no itemized TRA. is this allowable under option C assessment of compensation events?
asked May 16 in NEC3 Compensation Events by Joe  

1 Answer

+1 vote
Any compensation event the Contractor is allowed to include risk which has a significant chance of occurring and is their risk under the contract. Once this compensation is implemented then this would increase the Prices accordingly, and if valid a movement of the Completion Date accordingly.

Under option C the Contractor is then paid their actual cost that they can prove that they actually have spent as part of Defined Cost. If they have spend less than the quote this will lower their forecast cost and increase the "gainshare" which both Parties benefit from. If their planned completion is earlier i.e. TRA was not utilized, this will create "terminal float" which the Contractor owns and is retained in the assessment of any future compensation events.
answered May 16 by Glenn Hide (33,040 points)