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.

Do you want to update your skills in NEC3, NEC4, JCT, Procurement, CDM or Project management?

Sign up for one of our free online courses.

4,671 questions

4,954 answers

861 comments

Register its Free

Download here

NEC PSC: Does a change to staff rates arising from Option X1: Price adjustment for Inflation require an Early Warning?

0 votes
162 views
We have a Framework Contract with a Public Sector Client that is approaching its first anniversary and we are beginning the process of calculating new rates in accordance with Option X1.

We are unclear if the change in rate requires a "formal" early warning to be issued to the Employer in advance of the anniversary.

We are in two minds at the moment.  We can see why the changes requires an Early Warning as it will "increase the total of the prices."  Equally, we can see why it would not since Option X1 is part of the Contract, the Index was set by the Employer at the outset and it will be a "risk" that is immediately realised.

Any guidance or suggestions would be appreciated.
asked Dec 20, 2017 in NEC3 Secondary X, W and Y options by Brian (910 points)  

1 Answer

+1 vote
 
Best answer
I don't think there is a contractual need to notify an early warning in this situation. It would not seem as though anything could be done about it anyway - which is the whole point of an early warning i.e. what can we do about it.
 
Whatever you call it though - it would do no harm to let the Employer know this increase is coming just so they can understand increased costs/manage expectations elsewhere - it just doesn't need to be on a piece of paper called an "early warning".
answered Dec 20, 2017 by Glenn Hide (64,140 points)