Expert advice in minutes not days. Register it's free and ask your first question now.
ReachBack is a free community help desk for construction professionals run by Built Intelligence. A library of high-quality questions from real users with answers delivered and curated by industry experts.

5,617 questions

6,029 answers


Register its Free

Download here

NEC ECC: Removal of scope

0 votes
Under option C if there is a removal of scope I would usually raise a negative CE to reduce the scope.

What about option A? The job was priced as a lump sum, however a section of scope is being removed by the client. Should a negative CE be removed to reduce final cost? Or as it was lump sum project should that be the final cost?
asked Jun 2, 2017 in General by Darren  
The clause Dave points to below is  option A clause 63.14. Note rates and lumps may only be used AS A BASIS by AGREEMENT !

1 Answer

0 votes
Best answer
If there has been a CE to reduce the scope, and provided that the core clauses have not been amended, then a negative compensation event should be assessed to reflect the saving in Defined Cost + Fee of not doing the work (considering any change in risk profile etc).By agreement the saving/reduction could be based on something else.
answered Jun 2, 2017 by dave bates Panel Member (14,750 points)  
Under Clause 60.1(1) a change to the scope (which is still called the works information under NEC3, and will only be called the Scope under NEC4) is a compensation event with only two exceptions as noted in that clause.  The change still constitutes a compensation event irrespective of whether it adds cost or time, reduces cost or time, or is ultimately determined to have no effect on either, so the PM should always notify a CE for any change to the WI, irrespective of the particular main option.