NEC ECC: If an additional piece of equipment is used for the works for a CE who pays if it is also used for contract works?

NEC3 and NEC4 Contracts Compensation Events
1

A PMI was issued for some additional works.

The Contractor is now claiming retrospectively for an additional boat and boatman to undertake the works for the CE by ferrying the workman around the site. However records show that during the CE works the boat was also used (75% of the time) to ferry workers for the contract works.

The Contractor is claiming the full costs, however, should the quote be adjusted to reflect an assessment of the time that the boat has been used on CE works? I.e. 25% of the cost?

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2

There are two issues here :

  1. If the additional boat helps the Contractor achieve efficiencies elsewhere on the contract, then there will presumably reductions in Defined Costs due to the compensation event elsewhere. These should be part of the overall assessment.

  2. It is not clear where you are in the timeline of quotes etc. , but my concern is that the Contractor is trying to open up a previously agreed CE quotation and you are going along with it. If a CE has been implemented - by which I mean either the PM has accepted it and the PM has notified the Contractor of his/her own assessment, then it cannot be re-visited unless an PM assumption changes.