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.

4,580 questions

4,836 answers

812 comments

Register its Free

Download here

NEC ECC: Option C Schedule of Cost Components - Charges under NEC3

0 votes
156 views
When SoCC 4.43 is used in an Option C contract, what is the definition of 'payments'?

I am currently working with an amended form that adds additional items to 4.43 (from 4.44) which the contractor can receive 'payments for'. These include:

(j) medical facilities and first aid
(k) sanitation
(l) security
(m) copying
(n) telephone, telex, fax, radio and cctv
(o) surveying and setting out
(p) computing
(q) hand tools not powered by compressed air

How would these payments be calculated?

Currently the contractor is placing them as lump sums, ie a full cost of a laptop, full cost of mobile phones etc. I feel it isn't fair to pay a full value of these items, but a payment should be proportion depending on the scheme programme/value (originally 24 week programme/under £450k Target Cost) as it is reasonable that these items will be used again.

At the moment, I am deducting a portion of the lump sum as a Disallowed Cost.

Thoughts?
asked May 14 in NEC3 and NEC4 Contracts by JJQS (190 points)  

1 Answer

0 votes
I think a sensible way to deal with this would be to treat it in a similar way to Equipment under 23 'Equipment purchased for work' with a reasonable calculation of the 'change in value' over the contract period, which appears to be what you are doing anyway.

There is often an issue with the cost of calls from phones (work related or personal) but it depends on what is paid for by the Contractor which should constitute Defined Cost.
answered May 16 by Andrew WI (10,080 points)