Expert advice in minutes not days. Register it's free and ask your first question now.
ReachBack is a free community help desk for construction professionals run by Built Intelligence. A library of high-quality questions from real users with answers delivered and curated by industry experts.

5,331 questions

5,705 answers

1,264 comments

Register its Free

Download here

NEC ECC: Supply contract assessing the amount due

+1 vote
31 views
Under an NEC3 Supply Contract, what does the percentage for overheads and profit added to the Defined Cost do and how is it applied to the price schedule in assessing the amount due?
asked Nov 7 in Feature Requests by Nicola Smith-Lee (160 points)  

1 Answer

+1 vote
 
Best answer
This percentage only comes into play when there is a compensation event i.e. if there is no compensation event at all in the contract, it would never be used.

When there is a compensation event, then under the Defined Costs due to the event are built up as per clause 63.2 and the percentage is added on top to these Defined Costs. It is intended to cover indirect costs e.g. factory overheads and profit.
answered Nov 7 by Jon Broome Panel Member (59,440 points)  
selected 6 days ago by Neil Earnshaw