ECC3 Pain/Gain Share Calculation

ECC3 Option C – Pain Gain Share

When estimating the Pain/Gain banding cost/value, is the PWDD (estimated final cost) or the Forecast Total of the Prices (Target Price + CEs) used to calculate band range before applying the respective share band percentages to the difference ?

I assume you are referring to the preliminary assessment (clause 53.3) following Completion of the whole of the works.

The short answer would be both, i.e. the difference between total of the Prices and the PWDD would give you a saving or excess sum, which you would then “fit” into the share ranges in increments; each of those increments would then be multiplied by the respective (to the the share range) Contractor’s share percentage, and the total of those products would give you the Contractor’s share.

If you have access to the NEC3 ECC Guidance Notes, they have a very nice example on page 66.

Yes its the preliminary assessment. The percentage difference calculation I have used is (PWDD- TOPS)/PWDD. However (TOPS-PWDD)/TOPS gives a different % difference. This is my query as to which should be used.