NEC ECC: Is the Project Manager to certify two amounts due if there are multiple currencies

Under our NEC3 Target Cost contract we are processing our application for payment and seeking recovery of our Defined Costs in both Euro and Sterling, as per CL. 50.6. The Contracts is in Sterling. My question is then; does the PM cert two amounts due. The Contract, cl. 50.1, etc., always refers to the ‘amount due’ in the singular. Is it that there would be ‘amounts due’ if there are multiple currencies?

I’m not sure the linguistic distinction you are making is particularly relevant here.

There’s one procedure for application, certification and payment that usually repeats on a monthly cycle. So you’ll make one application that will state what the amount due is which will be broken down into three main elements: (1) Defined Cost in Pounds Sterling, (2) Defined Cost in Euros and (3) Fee in Pounds Sterling. The PM will then certify in the same manner, on a single payment certificate then payment of the relevant amounts will be made in Pounds Sterling and Euros.

Ok, so lets say the cert issued by the PM states that the amount due is + €1m & - £0.5m under the two currencies. What does the Contractor proceed to do.

I can’t see how that would happen in reality and is certainly not a scenario I’ve come across. How do you end up with -£0.5m of Defined Cost? Given that payment is based on the cumulative amount due less amounts previously certified which is automatically self-correcting you would have had to have been paid at least +£0.5m previously to end up with a -£0.5m being deducted later. Remember in Option C you are only paid what you can prove you have paid for in the first place. It might help if you give a practical example of how you can envisage this happening as I’m struggling to think of one?