NEC 3 Option Clause 52.1

NEC3 and NEC4 Contracts Main options
1

We have a NEC 3 Subcontract Option C

We submitted the expenses claim with substantiation of actual costs however they have made an assessment of these costs paying 75% less. They state by using Google they could get flights and parking cheaper than we have incurred.

Our agreement was that our MD would attend site weekly as requested however the client would pay for his expenses only and not his time.

Expenses claim in our AFP goes back to April 2018 and is up to end of September 2019.

When aske what method within the contract this assessment was based on they quoted clause 52.1, specifically:

“Defined cost includes only amounts calculated using rates and percentages stated in the Contract Data and other amounts at open market or competitively tendered prices with deductions for discounts, rebates and taxes which can be recovered”.

Is this relevant to their assessment?

We believe this clause is not applicable to the method they have applied.

1 Like
2

By a strict interpretation of this clause the answer is “yes” BUT it is on a like for like basis/ I.e. if the cheapest flight that they could get by Google is via a number of destinations &/or at inconvenient times and the parking is a 20 minute bus ride away from the airport then it is not on a like-for-like basis.

Similarly, if the MD travels by first class, because he can work in airport lounges etc, and that price is at open market or competitively tendered rates then that is also allowable.