Equipment Rates

NEC3 and NEC4 Contracts Compensation Events
1

The Contractor has submitted a quotation for a piece of work that was carried out wholly by his sub-contractor.

The Contractor’s quotation is merely his sub-contractor’s quotation plus the sub-contract fee percentage.

In Contract Data Part 2 the Contractor has inserted -25% as the percentage for adjustment for Equipment in the published list.

However, there is no percentage adjustment in the sub-contractor’s quotation.

Is this correct?

This is an NEC3 Option A contract

2

No.

In Option A the compensation event should be assessed using the Shorter Schedule of Cost Components whether subcontracted or not, per the definition of Defined Cost at 11.2(22). That means you should be using the published list with adjustments, where relevant.