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.

5,439 questions

5,832 answers

1,296 comments

Register its Free

Download here

Can disallowed costs be applied under NEC3 ECC option C after a termination certificate has been issued?

+1 vote
761 views
Cl. 93.1 and 93.2 cover payments due on termination, does the wording "an amount due assessed as for nromal payments", include for costs which the PM wishes to disallow?
asked Dec 4, 2014 in Termination by anonymous   11 63 93

1 Answer

+1 vote
 
Best answer
The amount due is calculated, normally, through clause 50.2. This clause allows for payment of the Price for Work Done to Date less amounts owed plus sums due to the contractor. The PWDD for Option C is defined at clause 11.2(29) as the total Defined Cost. Next you need the definition of Defined Cost, which, for Option C, can be found at 11.2(23) as, in summary, amounts due less Disallowed Costs. Disallowed cost is then defined at 11.2(25).

So, after a very long string of defined terms the answer is that yes, the payment on termination can and indeed should include Disallowed Costs.
answered Dec 4, 2014 by Rob Horne Panel Member (19,700 points)