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NEC ECC - Payment on consumables

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The Supervisor on the project is very particular about the type of coffee to be provided in the Site offices. They convince you that an expensive coffee machine should be provided by the Contractor together with an allowance of 300 coffee pods per month to be used in the machine.

What should the Project Manager do to arrange for the Contractor to do this? How would the Contractor be reimbursed for the cost it incurs?
asked Jun 12 in Payment by erichanhk (160 points)  
Simply, advise the Supervisor that the Project Manager will have to issue a Project Managers Instructon changing the Works Information. This instruction should include the specification of the coffee machine and the Supervisors favourite coffee pods (Maybe not the last bit)

You will be reimbursed once the Compensation Event has been implemented.

If you are using an Option C, D, E, be careful not to be convinced to purchase this item without an instruction. if I was auditing your costs as a Client, I wouldn’t be best pleased with the idea of paying for a very expensive coffee machine and a supply of expensive pods.

1 Answer

0 votes
The simple answer is what is stated in the Works Information or Scope?  If it says 'coffee' then you would be obliged to provide just that, presumably a product that complies with the description which would be a cheaper brand.

If the Project Manager instructed a change to specify a particular coffee brand  then the Contractor would be obliged to comply with this.  This would be a compensation event under 60.1 (1) although the assessment of the effect on Defined Cost would be the challenge under NEC3.

Under NEC4 this would not be  an issue, but the inclusion in the Working Areas overhead charge of such 'consumables' would strictly mean that this component of cost would, by definition, be deemed to be included in this charge, as the additional requirements are not core components under the SCC.

I encountered a similar issue previously on an NEC2 main option D contract whereby the Employer wanted to add additional site accommodation, which was then included in the Working Areas charge in NEC2.  The sensible way forward was to assess the additional cost in the compensation event quotation, regardless of the strict application of the contract mechanisms.  This would be a sensible way forward

More concerning from the Employer's point of view would be any additional cost just to satisfy the Supervisor's particular requirements !!
answered Jun 13 by Andrew W-I Panel Members (21,090 points)