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NEC ECC: Option A Substantiation of rates

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I've been placed on a project where there are no rates included within this particular NEC3 Option A Subcontract. Everything has been pre-agreed in lump sum elements.

My question is with regards to a Compensation Event quotation from the Subcontractor, what substantiation would be required for their rates included within their quotation?
asked Jan 23, 2019 in Compensation Events by trauts80 (420 points)  

1 Answer

0 votes
For compensation events, the change in the Prices = the change in Defined Costs + Fee - see clause 63.1. So original tendered rates do not apply in calculating this change unless the Project Manager and Contractor agree - see  option A clause 63.14.

So unless you agree to use the original tendered rates, the new 'lump sums' are calculated from first principles in accordance with the Shorter Schedule of Cost Components and you should be able to see that substantiation.
answered Jan 23, 2019 by Jon Broome Panel Member (60,950 points)