NEC ECC: option B - Payment of monthly prelims

PQS has advised he will pay prelims on assessment only, not pro rata the tender prelim figure over the contract duration, I believe he hopes to try and find a saving, which I understand he can’t change the total of the prices without a CE.

Is he allowed to assess it like this each month? He has then told me if the contract over runs through my fault, he will then reduce the prelim payment on a monthly basis to cover the over run?? Contradicting what he previously told me, can he do this?

I’m assuming you have a lump sum (or series of lump sums) for prelims.

Answering the second part first, no the lump sum(s) cannot be reduced due to Contractor’s overrun. The overrun is dealt with separately, hopefully you have Option X7 in the contract specifying the level of damages for overrun.

In respect of the first part (the lump sums), under clause 11.2.28 the PWDD should include “a proportion of each lump sum which is the proportion of the work covered by the item which the Contractor has completed”. Therefore you should agree a reasonable profile for the payment of the prelims which may not be just £X/Y months due to peak levels of staffing etc. If you are in Contractor’s delay then the profile will need adjusting over the longer period. Ultimately the full lump sum is payable.