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NEC ECC: Revising Prices in Option B

+2 votes
125 views
I am working on a small job - we have utilised a different methodology which means i have bill items that are no longer relevant. Can i put in a CE showing a reduction based on the defined cost and still claim the value of the bill items?
asked Jun 25 in General by GeordieQS (140 points)  

1 Answer

+2 votes
In theory this shouldn't happen because the Bill rate should describe the end state that is to be achieved which should match up with the description of what is in the Works Information (under NEC3) or Scope (NEC4). So doing it a different way should not affect either.

But we all know that there will often be a difference between the description in the BoQ and the WI/Scope in which case the clause to look at is option B clause 60.6. I would look here as well and see if the situation you find yourself in matches one of the three criteria in the first sentence. That will allow you to get something, but it will be a reduction in Defined Cost + Fee which reflects your reduced costs. Not doing this I think may result in zero payment.

If under NEC4, you could possibly have proposed the change and then shared the difference under option B clause 63.12.

However, unless I am missing something, NEC does not quite cover your exact circumstances for the 'in theory' reason I gave at the start.
answered Jun 27 by Jon Broome Panel Members (56,570 points)  
Jon's good answer has highlighted an issue which is often overlooked under Option B, which is that of managing the BoQ.  The Contractor only has responsibility for the rates and it is the Project Manager who takes action under clause 60.6 (without prompting) to ensure the BoQ is 'compliant'.  Perhaps I have more of a personal interest in this matter as a QS, but as you have highlighted there are practical consequences for not managing this process, not least with the payment assessment.