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NEC ECC: Option D Remeasurement
I understand that the Contractor is paid their defined cost under main Option D, and not against the tendered bill rates v quantity as per main Option B. However, I would like clarification on the general remeasurement rules within Option D.
Simply put for an example, if the bill of quants says 10m3 of concrete, yet when the work is undertaken 11m3 of concrete is poured (bill measurement not 100% accurate), does the Total of the Prices (target cost) get adjusted by the bill rate for this additional m3? And the same for each other bill item. Or, does the Total of the Prices not change and therefore the target is not altered. I appreciate there are clauses such as 60.4 (0.5%) and 63.13; however I'm not concerned with CE situations rather just the exact accuracy of the measurement and how this is adjusted once the finished work provides the actual quants.
I was of the understanding the Contractor is paid his actual (defined) cost, yet all the works are remeasured as per Option B, so to determine the actual Total of the Prices.
Various papers seem to have different guidance.
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I was explain this in training yesterday and it is complicated !
Under the 3rd bullet point of 60.4, the threshold for musing Defined Cost + Fee to calculate the change to the target Prices is 0.5% of the Prices at the Contract Date but it is the FINAL quantity x original rate, not the CHANGE in quantities. What does this mean ?
1. If final quantity x original rate < the 0.5% threshold the adjustment to the Prices is the change in quantities x original rate. I.e. the Prices element is on re-measurement
2. If the final quantity x original rate > 0.5% of the Prices, then the original quantity x original rate still stands as a component of the Prices, but the adjustment is on change in Defined Cost + Fee, which can also be negative and therefore reduce the Prices.
However, if the operation is on the critical path, then any increase in quantities will delay Completion and hence will be a compensation event under 60.5. This will be assessed as the change in Defined Cost plus Fee.
Clear as mud (and that's not going into other bullets / clauses) !
Thanks for your reply. Yes clause 60.4 is 'clear as mud', but I think I understand this. Just to be sure, regarding your second item, is it only the difference in quantities/additional quants (say) which the defined cost is applied to and the original bill quants are applied to the tendered unit rate?
My main query was to confirm that every item in the bill of quants (Option D) is re-measured (irrespective of whether clause 60.4 is triggered)? This will then give a revised Total of the Prices, and the pain gain calculation of the PWDD will then be undertaken on this?
You've got it !
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