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NEC ECC: Contract Data Part 2 - How do we respond with more than a Single Fee

0 votes
Working under an NEC4 ECC contract, the Contractor is submitting their Contract Data Part 2 in response to the CD1 and ITT.  

There are several Subcontract packages as is normal.  There is also a requirement to supply equipment to the Client for them to use.  There is also a requirement for the Contractor to supply his own labour to install the Clients equipment.  

In all of the above a different Fee could be charged to the Client to offer better value.  Recognising the Single Fee baseline - how would the Contractor include say three Fees in the CD2.  Possibly amending the CD2 :

Subcontract Works - Fee %
Material Supply Only - Fee %
Own Labour Supply Only - Fee %

These fees would apply to SCC and SSCC as well we imagine.

Are we on the right path ?
asked Jul 24, 2019 in Contract Data by MWN (200 points)  
I assume you are tendering for either an option C, D or E?

I would stick to the contract for completing CD Part 2 and if you want to offer a lesser fee on the material supply elements only, reflect this by reducing your fee.

1 Answer

+1 vote
If you want to have multiple fees then you need to amend the relevant clause(s) in the contract using Z clauses, for example you would need to amend the definition of the term Fee.

I agree with Kevin, sticking to the standard ECC approach would be much better, as soon as you start amending the contract you start to introduce the risk of ambiguity and inconsistency. Ask yourself what benefits you will gain from using multiple fees and weigh them up against the costs and risks associated with amending the contract.

There was a good reason why NEC to remove multiple fees from NEC4, to make things simpler!
answered Jul 25, 2019 by Neil Earnshaw Panel Member (30,340 points)