# NEC ECC: Should an NEC3 Option C Contractor be applying for Inflation (X1) to their NEC3 Option A Subcontractor's 'costs'?
**URL:** https://reachback.builtintelligence.com/t/nec-ecc-should-an-nec3-option-c-contractor-be-applying-for-inflation-x1-to-their-nec3-option-a-subcontractors-costs/4897
**Category:** Secondary X, W and Y options
**Created:** [31 January 2019 22:48 UTC](https://reachback.builtintelligence.com/t/nec-ecc-should-an-nec3-option-c-contractor-be-applying-for-inflation-x1-to-their-nec3-option-a-subcontractors-costs/4897 "2019-01-31T22:48:50Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@ASimpleQS](https://reachback.builtintelligence.com/u/ASimpleQS)
#### Post date: [31 January 2019 22:48 UTC](https://reachback.builtintelligence.com/t/nec-ecc-should-an-nec3-option-c-contractor-be-applying-for-inflation-x1-to-their-nec3-option-a-subcontractors-costs/4897/1 "2019-01-31T22:48:50Z")
I represent the client and the Contractor is working under an ECC
---
### Author:  [@Andrew\_W-I](https://reachback.builtintelligence.com/u/Andrew_W-I)
#### Post date: [1 February 2019 09:22 UTC](https://reachback.builtintelligence.com/t/nec-ecc-should-an-nec3-option-c-contractor-be-applying-for-inflation-x1-to-their-nec3-option-a-subcontractors-costs/4897/2 "2019-02-01T09:22:25Z")
The answer is NO as X1 operates to add an inflationary adjustment amount to the Prices (target) based on the value of an interim assessed amount of PWDD due.
The adjustment to the Prices is made based on when cost is actually incurred, by applying a Price Adjustment factor (PAF) calculation, which compares the current indices with the Base Date Indices (as stated in the Contract Data).
---
### Author:  [@ASimpleQS](https://reachback.builtintelligence.com/u/ASimpleQS)
#### Post date: [2 February 2019 11:35 UTC](https://reachback.builtintelligence.com/t/nec-ecc-should-an-nec3-option-c-contractor-be-applying-for-inflation-x1-to-their-nec3-option-a-subcontractors-costs/4897/3 "2019-02-02T11:35:32Z")
Thanks for your answer… in theory the Contractor’s PWDD will include works associated with their Subcontractor’s Option A Subcontract Agreements… on that basis it sounds like whether they award their Subcontract agreements under an A, C etc. is irrelevant?