NEC ECC: Agreeing compensation rates

NEC3 - option A: under clause 62.1 can both parties agree to use “actual cost” for compensation events. Example - importing large amounts of fill material. Can it be agreed a rate per lorry load and the payment applications would be defined cost. The subcontractor would make profit on the people over heads, working area overheads and fee.

I don’t think clause 62.1 is the relevant clause as you seem to be concerned with different ways of assessing the compensation event as opposed to how the work is done.

I’ll point you at two other clause:

  • option A clause 63.14 allows rates and lump sums to be used if both the PM and Contractor agree. These could be made up or based on Subcontractor or supplier rates … the contract does not say.
  • within the Shorter Schedule of Cost Components under 4. Plant & Materials, the Contractor is paid for the cost of them including delivery.

Hope this helps.