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NEC ECC: Option B. is Contractor entitled to direct fee on substituted work in the BOQ, as the original work had already included the P&G's?

0 votes
If there was an item in the BOQ for supply and install swing gate, and the contractor priced for this item, now the Employer is changing the swing gate to sliding gate, do we still have to pay for Subcontractor's fee as the initial swing gate already had an install fee?
asked Jun 5, 2019 in Compensation Events by Lebotau (150 points)  
It sounds like you've changed the Works Information. Presumably, your Works Information stated that the Subcontractor supply and install a swing gate. You have now changed this to a sliding gate. This is a change to the Works Information and the Subcontractor is entitled  to raise a Compensation Event for this change under 60.1 (1).

Therefore the Subcontractor will be entitled to apply any Fee's applicable to that Compensation Event.

Worth noting, you should be shown the savings (if any) for the omission to the scope of the swing gate.

1 Answer

0 votes
You price the change on the basis of deducting the defined cost of the omitted work, plus fee, and then adding back the defined cost of the additional work, plus fee.

If the sliding gate costs more than the swing gate, then you effectively end up paying fee on the difference, but if the sliding gate costs less than the swing gate you effectively save the fee on the difference.
answered Jun 10, 2019 by dave meller (2,420 points)