NEC ECC: Option E - Forecast Period

NEC3 and NEC4 Contracts Payment
1

I am currently about to start work on an Option E (first time for me) contract and thought that the payment terms were actual costs to date (assessment date) plus a months forecast to the next assessment date. However I can’t find any clauses to back this up.

Clause 50.1 states the PM assesses the amount due at each assessment date - no mention of forecast to next assessment date. We currently have a proposed payment schedule whereby we are required to submit our afp one week prior to the assessment date so under this form of contract would that mean that we only forecast a week to the assessment date and not a month ahead to the following assessment date.

Can anyone help point me in the right direction please.

2

Don’t forget - which ever option you are working under there are main option clauses relevant to that option.

For option E, you have definitions :11.2(23) which defines Defined Cost, and 11.2(25) which lists Disallowed Costs, You then also have 11.2(29) which Defines the Price for Work Done to Date for option E - which is as you described i.e. Defined Cost which is forecasted to have been paid before the next assessment date plus the Fee.

If you are under NEC3 you will find the specific option E clauses on pages 38 and 39, in NEC4 you will find them in pages 42 and 43.