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NEC ECC: PC sums in NEC Option C

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We are currently working on a contract under Option C. We had a PC Sum in for piling that we now know will not cover our costs. Under NEC can we submit a CE to raise the target to capture the additional cost?
asked Dec 19, 2018 in General by kchastney (160 points)  

2 Answers

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The answer is that it depends on what the contract says, whether it formally recognises PC Sums (which the standard NEC form doesn't) and how they are to be administered under the contract.

Hopefully there is an additional compensation event added to specifically deal with this issue, otherwise the normal risks under the NEC would continue to apply, including the risk of an amount in the activity schedule not covering the actual cost of that activity.  If that is the case then the matter would fall under the share calculation procedure in core clause 5.
answered Dec 20, 2018 by Andrew W-I (14,010 points)  
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Difficult to answer a question about something that the contract does not legislate for. Search "provisional sums" within Reachback to get other answers around this topic.

The general principle is that we should not need them, and if the Client did need them for budget purposes to get an allowance into the tender then they should be removed upon contract award as the Employer "risk pot" and any such works then instructed as a CE and they have a pot of money to pay for it (which may or may not be enough). Biggest issue always with "provisional sums" is that you cant really allow anything in programme for something you don't know what you are going to be doing.

The answer to your question is "you would hope so", but as Andrew says you have to hope your Works Information mapped out how this would work - and if not I think you should get round the table and talk to each other to get to (hopefully) a suitable agreement.
answered Dec 21, 2018 by Glenn Hide (67,240 points)