# NEC ECC: Option B compensation event pricing

**URL:** <https://reachback.builtintelligence.com/t/nec-ecc-option-b-compensation-event-pricing/5260>\
**Category:** Compensation Events\
**Created:** [31 August 2019 13:09 UTC](https://reachback.builtintelligence.com/t/nec-ecc-option-b-compensation-event-pricing/5260 "2019-08-31T13:09:51Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Broadhursts](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/broadhursts/32/5_2.png) [@Broadhursts](https://reachback.builtintelligence.com/u/Broadhursts)\
**Post date:** [31 August 2019 13:09 UTC](https://reachback.builtintelligence.com/t/nec-ecc-option-b-compensation-event-pricing/5260/1 "2019-08-31T13:09:51Z")

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When pricing a CE in Option B, if existing rates from the BoQ are used to value the CE should the direct fee % be added to the valuation?

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**Author:** ![Jon\_Broome](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/jon_broome/32/192_2.png) [@Jon\_Broome](https://reachback.builtintelligence.com/u/Jon_Broome)\
**Post date:** [1 September 2019 11:12 UTC](https://reachback.builtintelligence.com/t/nec-ecc-option-b-compensation-event-pricing/5260/2 "2019-09-01T11:12:15Z")

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The contract says “If the Project Manager and Contractor agree, rates and lump sums may be sued to assess a compensation event”.

So, as a Contractor - which I am guessing is what you are - using straight rates from your BoQ don’t cover your costs because, for example, there is a time related element or you have just bid low, then don’t agree. If they are there for thereabouts, agree.

Identical wording is used in option A where there are not any BoQ rates at main contract level, but might be at subcontract level, so it is not unusual for Subcontractor BoQ rates to be used for the direct costs, Defined Costs for any Contractor costs plus relevant Fees.