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

4,305 questions

4,506 answers


34,753 users

Register its Free

Download here

NEC ECC: What is the likely effect on tender prices of not having overheads using NEC4?

+1 vote
asked Sep 30 in NEC3 General by Hayley Morris (130 points)  

2 Answers

+1 vote
I assume you mean not having the percentage for Working Area overheads under options C, D and E.

For me, it is more realistic Prices because the risk - which could be both threat and opportunity - associated with  this percentage is removed. That might mean higher Prices or lower Prices but - all other things being equal - will probably mean that real costs are closer to Defined Cost are closer to the Prices. This applies to both forecasts at tender and actuals at out-turn.

Suggest you post this on the BuilltIntelligence LinkedIn NEC forum as it is a good point for discussion.
answered Oct 1 by Jon Broome (25,060 points)  
+1 vote
Probably wont alter tendered total of Prices too much, but will obviously affect the fee percentage as the element for recovery of people/working area overhead will now have to be included within the single fee. Therefore you will see a slight increase in that fee percentage (actually you wont as you wont know what it would have been for any future tender) but overall the attempt would be for a Contractor to get back to the same financial point you were with more than one fee percentage.

This is about redistribution of fee rather than additional/reduction. Will be easier to administer, but more difficult for Contractor to get right in the first place in a competitive tender situation.
answered Oct 2 by Glenn Hide (33,000 points)