Working for the Main Contractor and have notified a compensation event due to weather conditions experienced in the period. The PM has instructed me to submit a quotation. The planned Completion will be delayed by 8 days and I need to assess the cost implications of this additional period on site for People working within the Working Area (build manager etc…).
Within Contract Data Part 2 the Shorter Schedule of Costs Components does not include agreed rates for People within the Working Area and a specimen copy of the Contract does not provide a space to encourage the Contractor to identify rates at Contract formation (unlike the Equipment and Design sections). I am struggling to agree acceptable rates for People with the PM and want some advice on how we can agree rates on this Project.
I am about to set up a new Project using Option A and also wanted to know if I can, or should, include rates for People within the Working Area within the Shorter Schedule of Cost Components to ensure this type of dispute does not arise moving forward.
Thanks for your assistance.
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Cost component 11 in the SSCC would cover all the specific items listed in cost component 1 in the Schedule of Cost Components. So it is worthwhile using the SCC cost components to build up your people costs.
In regard to the future contract, the Parties to the contract could by agreement change the contract to allow for the use of stated rates for different grades of people.
This is no pure Nec as the principle is that you do not use rates or prices stated at tender but use the actual Defined Cost to the Contractor for the compensation event.
The idea being that a Contractor should be no better nor worse off for a compensation event (an Employer’s risk event) occurring.