Under NEC3 ECC Option B with a bill of quantites, I have undertaken a re-measure and will be submitting our Final Account. If the quantity for an item in the Bill of Quantites is now zero, how is this treated under Clause 60.4? Example ‘Disposal of unacceptable material U2’ quantity 2000m3, actual following testing of soils 0m3.
It would not satisfy the bullet point in 60.4 of rate x FINAL quantity being greater than 0.5% of the Prices are the Contract Date, so the Contractor would not get anything.
This is one of the many flaws with the BoQ clauses 60.4 and 60.5 as written which were not corrected in 4th edition … a grrrr of frustration !
Thanks Jon. Is there any avenue in NEC3 option B for loss of profit as a result of the re-measure and the quantity becoming zero?
On another note, for the same Clause (60.4) would you agree that this works for reduced and increased quantities? e.g. say there was 100k for an item in the BoQ and the new item amounts to 50k which equates to a difference of 0.5% of the total of the Prices at the Contract Date and this increases the Defined Cost for this item?
There is no avenue for recovering loss of profit.
What you say would apply to a reduced quantity but where rate x final quantity > 0.5%, so if you loss of income from quantity x rate being applied was greater than the reduction in Defined Cost + Fee due to the reduced quantity, it would make sense to notify it as a compensation event.