NEC 3, Option B

I am working on NEC3 Option B contract. According to SMM, many time related preliminary items should be measured up to the Completion of the works. I note that CE should be assessed in accordance with Clause 63.1 i.e. change of the Define Cost.

For a CE with time implication, how to deal with the time related preliminary items? to measure and reflect in the BQ or just assess the Define Cost and not measure under the BQ items?

Hello - You need to present the CE quotation in the BoQ, therefore your prelims are time related i.e. “Staff costs = £4000 x per week” (quantity x rate). Ideally present your prelims per week as each new line item. The CE gets implemented and remeasured upon Completion of the whole of the works. The reduction in the prelims quantities as part of the final remeasurement is very likely to be a CE under Cl.60.4 (assuming the remeasurement value is > 0.5% of the initial contract value).

The CE (60.4) for the remeasurement is essentially compensating the Contractor for the reduction in overall final quantities. The implemented CE raises “the Total of the Prices” and therefore must be remeasured at Completion.

Is it correct that you remeasure compensation events? Who takes the risk of the Forecast Defined Cost? what about clause 65.2 which says that the prices are not revised if the forecast is found to be incorrect?