NEC ECC: Defined Cost after Completion under Option E

NEC3 and NEC4 Contracts
1

The Schedule of cost components states ‘an amount is included… only if it is incurred in order to Provide the Works’.

Clause 11.2(13) defines To Provide the Works as ‘to do the work necessary to complete the works in accordance with this contract and all incidental work, services and actions which this contract requires’.

Clause11.2(2) states ‘…if the work which the Contractor is to do by the Completion Date is not stated in the Works Information, Completion is when the Contractor has done all the works necessary for the Employer to use the works…’

In light of the above, is the Contractor still entitled to be paid Defined Cost after Completion for people involved in activities such as; assessing / agreeing subcontract final accounts; responding to numerous communications from the Project Manager; participating in and responding to numerous audits by the Employer?

2

Yes : you are correct.

The constraint I would add is that Defined Costs still have to be incurred in accordance with the contract and are not Disallowed Costs. I am particularly thinking of being incurred within the Working Areas.