NEC ECC: Option C - Staff Forecast Costs

11.2.29 – PWDD is defined cost which the PM forecasts will have been paid by the Contractor before the next assessment date.

The question is with regards to People Costs (i.e Staff Salaries). Currently the Contractor applies for Staff costs to date + 1 months forecast for all staff. Assessment date varies every 4 weeks and is generally end of the month.

Should the staff costs be paid for the one month forecast?

Contractually I read this that the forecast staff costs should not be paid, because the staff are not paid until the end of the month and just outside the assessment date, therefore under 11.2.29 I do not see this having been paid by the Contractor before the next assessment date.

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What does “forecast” actually mean? It means monies which are to be paid out before the next assessment date. So if the salary payments fall before the next assessment date they are included if not then they will fall into the amounts paid in the next assessment.