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NEC ECC: Supply contract assessing the amount due

+1 vote
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, 2019 in Feature Requests by Nicola Smith-Lee (180 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, 2019 by Jon Broome Panel Member (65,420 points)  
selected Nov 12, 2019 by Neil Earnshaw