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NEC PSC: Programme extension effect on rates

0 votes
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This is for a PSC NEC3 contract. The consultant is on a framework with agreed framework rates.

Consultant appointed in 2016 for a package of projects. There are been numerous CE's that have pushed the completion date for the projects out. Now that most of these projects are complete or near completion, the consultant is putting in a Compensation event for increased rates, as the deliverableS now are effectively costing more than originally planned due to previous compensation events. i.e a document tender to be complete in 2017 being completed in 2019 has a higher cost associated with it.

Are they entitled to put this in, after the event has happened?
If the contractor thought they would be entitled to this, should this not have been included in each compensation event that pushed the programme completion date out, as each compensation event should be for the impact to the programme by that compensation event?

No Z22 clause in the contract. Hope this makes sense.
asked Jul 25 in Compensation Events by SB_SA2005 (120 points)  

2 Answers

+2 votes
The only right the Consultant has to increased rates would be if secondary Option X1 had been used by the Employer. The event you've described (increased rates) is not one of the listed events at clause 60.1 and unless X1 had been used the Consultant would still not have been able to recover increased rates even if they had included them in the original CEQ.
answered Jul 25 by Neil Earnshaw Panel Members (21,690 points)  
+1 vote
If there was a compensation event that delayed works that meant that they would be more expensive, or maybe carried out in a different season so they will take longer, the effects of that have to be captured/predicted at the time as part of that compensation event. The full effects of any CE has to be assessed at the time. Therefore it is likely that they have missed the boat on this EVEN if there was an entitlement, as either they will be time-barred on notifying if they haven't already, or there is an element they did not price within a CE at the time that will by now be implemented and therefore full and final.
answered Jul 26 by Glenn Hide Panel Members (74,860 points)