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NEC ECSC: Is there such thing as loss of profit?

0 votes
A delay encountered on an NEC3: ECSC. Contractor submits a CE quotation with  a sum under item 'Defined Cost of loss of Profit'. Is there any provision under this Short Contract for loss of profit?

Also, as a result of the Delay, Contractor has claimed for 'People Costs' i.e. Site Manager, Site Operatives etc.. Clause 63.2 refers to Defined Costs which the Contractor had incurred.
asked Mar 27 in Compensation Events by CB (170 points)  

1 Answer

+1 vote
To answer your query, the Defined Cost is a defined term and defined in 11.2 (5). The definition has no heading for 'Defined Cost of loss of Profit', so this is not an allowable cost.

However, the definition does allow for "people employed by the Contractor," so under the definition, they fall within Defined Cost and, what is more, these words are replicated in clause 63.2. So the people costs in your second paragraph, unless I am missing a nuance in your question, are allowable as Defined Cost.
answered Mar 28 by Jon Broome (54,520 points)