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NEC ECC: Amendments to Composite Rates NEC Option B and the resultant Fee

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I have a problem which involves an amendment to an item which is in a BOQ and has been priced as a composite item.  The item is fairly complex and the replacement more complex than the original.

To keep things easy, lets say the original item was a shed and the replacement was a garage.

Shed 1nr x £10,000.00 = £10,000.00

The appropriate fee percentage is 20%.

The shed does not get built and in simple terms in omitted. A garage is built in its place, the garage was built with a Defined cost of £20,000.00.

Clause 63.1 states:
The changes to the Prices are assessed as the effect of the compensation event upon:
- the actual Defined Cost of the works already done,
- the forecast Defined Cost of the work not yet done and
- the resulting Fee.

Is the resultant Fee:
a) £2000.00 or
b) £4000.00
c) or some other sum (lets say it was going to cost me £9k to supply and install a shed)

Thanks
asked Feb 10 in NEC3 Compensation Events by Richard Barnes (150 points)  

1 Answer

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Your answer is C, unless you choose to use BY AGREEMENT bill of quantity rates. Otherwise like any compensation event it would be an add and omit based on forecast Defined Cost now.

If you can prove that the shed would have been £9k to build (including reasonable risk + fee) and the garage will be £20k (including risk and fee) then the CE sum will be for the difference. That difference then needs to be reflected in the B of Q - which the contracts is not too prescriptive on how that is done.
answered Feb 10 by Glenn Hide (63,870 points)