NEC3 option C - on one of our sites (£20m) -we are receiving daily EWNs covering s/c suspension of works/ changed methodologies for safe working/ resourcing issues/ material supply issues etc etc and although the Contractor would like to progress Works this is looking more and more problematic… If the best option is to stop work/close the site can you advise the costs the Employer would be liable for - as well as delay/ impact on completion date/ would we pay for staff standing time (including sub-contractor teams) if works stop - ( the working area has been redefined to include home working/other locations for those working on the project) - is there any government support to cover construction workers on suspended sites?
Under this CE, like any other, the Employer is liable to pay the Contractor the Defined Cost plus Fee in assessments of the amount due, to increase the target by the amount of Defined Cost plus Fee associated with the CE, and to assess an extension of time.
The Contractor will need to demonstrate to the PM in both applications for payment and compensation event quotations that amounts included have actually been or are forecast to be paid by them and that the costs were incurred in order to Provide the Works.
Defined Cost is fully described in the Schedule of Cost Components and may be subject to Disallowed Cost. Note the terms Defined Cost and Disallowed Cost are both defined under clause 11.2.
The support measures announced by government over the last couple of weeks are not specific to construction. For Employer’s with Option C contracts there is likely to be substantial pressure put on budgets by recent events. If they are a government body then presumably budgets will need to be increased in order to complete projects when things go back to normal, for private sector clients additional funding will need to be sourced elsewhere.