NEC ECC: CECA Rates within a Compensation Event

NEC3 and NEC4 Contracts SOCC SSOCC
1

Within our contract (NEC4, Option A), we have agreed to use CECA rates less a discount and this is the rate that I have charged for my equipment costs with a CE. However, the PM has highlighted the following “Point 8 of Section B - Equipment in the CECA book states the following “Hired equipment (exclusive of drivers and attendants) shall be charged at invoice cost without deduction of any cash discount not exceeding 2.5%””.

The equipment is hired in, so is he correct that the equipment should be at hired in rates or are we correct for using the CECA rates?

2

You are correct to have used the CECA rates. Item 21 of the Short Schedule of Cost Components states you use adjusted rates in the published list and item 27 states you only use open market rates if the Equipment is not covered by either a rate in the published list or one listed in Contract Data.

3

Hi Neil, Point 1 of Section B states that unit rates are only applicable to equipment already on site. If additional plant is hired in solely for the purpose of the compensation event, would this then be charged at invoice cost?