NEC ECC: Change of CECA Rates When Pricing a Initial And Revised Compensation Event Quotations

NEC3 and NEC4 Contracts SOCC SSOCC
1

Two parts to the question, relating to the timing of compensation events and the application of CECA rates for plant. This question is asked in relation to an NEC3 Option A contract (formed in 2017) and based on the assumption that the newly published 2019 CECA rates would be applicable under the contract (as previous answers on this forum have confirmed).

  1. The Contractor is working on an NEC3 Option A contract. They submitted a compensation event quotation, which incorporated 2011 CECA rates for plant, despite the fact 2019 rates had already been published (at the time of both the event and the quotation). If the Project Manager instructs a revised quotation, is the Contractor entitled to use these new rates in their revised quotation?

  2. In a separate compensation event, the quotation again incorporated 2011 CECA rates for plant, but at the time of this event and quotation, 2011 was the most recent Published List. The Project Manager has since responded instructing a revised quotation, as the new 2019 CECA rates have now been published, is the Contractor entitled to use these new rates in their revised quotation?

2

It really depends upon what the entry was in the Contract Data Part Two: if the Contractor referenced the 2011 list and said something like “or as replaced by any updated list”, then the Employer/Client has accepted that as part of their offer is held to it.

If there is no reference to any potential update, then the 2011 Published List ould be the one to reference.

Do note that the previously accepted CE quotations could not be revisited in the light of any update