We are currently doing a project under NEC3 Option B. The PM issued Instructions changing the works information for work to be completed outside normal working hours i.e. during the night, Saturday and Sunday. When we submitted our quotations for the CE’s we applied an overtime rate to the people rate. The PM has responded saying that overtime is included within the rate that we provided in CD2. We have disputed this because the SSCC does not include for overtime. Clarification would be appreciated.
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Sounds as if you may have an amended CD2?
In a standard nec3 ECC contract there is no place for a rate or price to be inserted? The SSCC 11 states amounts paid by the Contractor including those for meeting the law and pension provisions.
So if you can demonstrate the amounts being paid to people for working outside working hours then this would be included as part of the amounts paid.
Also not clear on why working outside the normal working hours is required. Has the PM just relaxed the working hours? or has the Works Information been changed such that new or additional work has been instructed which necessitates outside of normal hours working?
If the PM has relaxed the working hours and now a compensation has arisen then there would be no reason for you not to work out of hours on a compensation event. and include this in your quotation assuming that the PM has not stated any assumptions (61.6)
Thank you for your reply.
Yes CD2 includes a table of defined costs for site employees, and state “hourly rates for the defined cost of construction supervision & management and hourly rates for construction operatives” rates to be inclusive of all cost components in accordance with SSCC. This table of rates was completed at tender stage.
To give a particular example. The PM instructed work that had to be completed during the night because it was beside a railway. The PM did not state any assumptions nor relax working hours. PM is now stating that the rates provided in the table of rates include overtime.
Interesting if you were using the Schedule of Cost Components SCC then cost component 12 (b) overtime would be included. The SCC is used for main Options C,D,E and F.
You are on main Option C SSCC and normally cost component 11 is for amounts paid by the Contractor…
Is there anything which indicates to what these rates apply - normal working hours? perhaps the Works Information refers to working hours? was other night time work contemplated?. I always work on the basis that a compensation event is an Employer risk event and as such the Contractor should be no better or worse off for a compensation occurring. A long way around to say if the compensation event involves doing night work which was not in contemplated in the contract then it would seem unreasonable not to pay for the overtime subject of course to the fact that there is not some other words hidden away somewhere about the basis of these rates.