NEC ECC: Option B - Re-measurement procedure

NEC3 and NEC4 Contracts Compensation Events
1

Under NEC3, our client has referred to an item in our Bill of quantities that has been priced at £6000 and he knows that only £1000 of this has been spent to date and no additional works are to be completed using this item. At this stage in the contract he is looking for any reduction in the prices.

He has asked us to ensure this is remeasured and raise this with our contractor.

Using this contract I was under the impression a change in quantity is not in itself a CE?

So in simple terms I’d like to understand the procedure I am to follow here?

(Also, our contract value is £2.1m so this item falls under the 0.5% stated in clause 60.4)

Any clarity would be much appreciated.

2

The way you describe this item sounds like it is a lump sum item and if it is now complete you are entitled to the full amount. If it had actually cost £10000 in the same way you could not have asked for more money as the Contractor.

If this was installing 60 widgets at £100 each and you have only installed 10 and that is all that you will install, then you just get paid £1000 and that is it. Clause 60.4 will not come into play, unless of course 50 widgets were deleted from the Scope as a CE, and then there may be an opportunity to revisit the 10 you have installed and reassess the cost if you can justify the unit price for 10 to install was higher than 60.