NE3 subcontract Option B (B.O.Q)

Iam currently working for a subcontractor using the nec option b (b.o.q) The prelims for the scheme are based on the cl31 programme for a duration of 24 weeks. Now we are on site the actual quantity’s are much less than those priced in the b.o.q.
This could potentially mean that the works will be completed within 20 weeks, does this mean that the subcontractor looses out on 4weeks of prelims?


In Option B, the PWDD is based on the BoQ.

You would have a CE arising from the reduction in the quantities of any of the items (quantity stated in the BoQ - final total quantity) only if the 3 tests in clause 60.4 are satisfied, i…e:

i) there is no change in the Subcontract Works Information (from what you said, I believe this is your case);
ii) the reduction causes the Defined Cost per unit to change; and
iii) the rate multiplied by the final quantity is more than 0.5% of the total of the Prices at the Subcontract Date.

Regarding the prelims, if they are not stated as an item in the BoQ and the 3 tests above are satisfied (i.e. there is a CE that needs to be notified etc.), you could potentially be looking at a reduction of the rate (due to a reduction of the Defined Cost) for the items affected. Of course, that would be subject to your quotation and the Contractor’s acceptance (or its own assessment).

If the 3 tests are not satisfied, you don’t have a (negative) CE and you would calculate your final payment as per the BoQ. You will note that I have not mentioned anything about the programme, because I don’t think it is relevant in your case.

I hope this helps.

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