NEC ECC: Is the Contractor Due Payment for Standing Time?

Option C contract.

The Contractor has submitted a CE, made up of the hours of subcontractor labour that have been spent waiting for the Employer to give access to the works area.

If the labour has been stood down for half the day but they have still managed to complete the works (i.e. they don’t need to come back on another day to compensate) then surely this is disallowed as there’s no actual cost incurred?

Firstly you need to satisfy yourself that the matter is a CE under the contract. Clause 60.1(2) provides that there is a CE if access is not allowed by the access date and the date shown on the Accepted Programme.

Should the matter be a CE, then the question to ask is what the Define Cost would have been had the CE not occurred v the Define Cost including the CE.

If it had been possible (had access been given) for the labour to have been used elsewhere having finished that element of the work then there is additional cost that the contractor should be compensated for (together with any delay).

The matter is not whether it is disallowed cost but whether there should be a target (Prices) adjustment.