While working on an NEC3 Option E Contract, the Contractor has recently suffered numerous delays getting to site as a result of Official Strike action by another Contractor which involved picketing the gates. The Strike Action related to a dispute over pay between the Employer and the other Contractor.
Each occasion resulted in 2 to 3 hour delays in getting to the site due to congestion on the roads.
The Employer is rejecting any compensation events (notified in accordance with 60.1(19) ) on the grounds that notice was given by the Employer and therefore alternative travel arrangements could have been made.
In reality, alternative travel arrangements were unpractical. The Contractor did however request to work alternative shift patterns to avoid the congestion at in-muster times however this proposal was rejected by the Employer.
The Employer has now gone one step further and Disallowed any costs for people sat in traffic for 2 hours waiting to get on to the site on the basis that they were not Providing the Works and were not working within the Working Areas.
Is the intent of the SOCC, specifically items 11 and 14, that any people costs incurred while outside of the Working Areas should be disallowed?
If so, what is the purpose of the first 2 bullets against item 1 which appear to differentiate between people who’s normal place of working is within the Working Areas and people who’s normal place of working is outside of the Working Areas but they are working in the Working Areas?
Previously, my interpretation of these 2 bullets were that costs associated with someone working outside the Working Areas could still be Defined Cost so long as their normal place of working was within the Working Areas.
I am now concerned that my initial interpretation may be incorrect.
If so, this poses a significant risk to the Contractor that any time/cost for QSs, Project Managers etc. spent working from home could be disallowed unless the home addresses of employees are added to the Working Areas in accordance with clause 15.1.
Similarly, a day spent auditing a subcontractor at their premises could be disallowed without first using clause 15.1.