NEC ECC: Under an Option C contract - is cost motor vehicle insurance for equipment be claimed as a defined cost?

Whilst insurance for company cars can be claimed under clause 13(n) of People in the SCC, can vehicle insurance for other equipment ie vans/lorries etc be claimed under clause 13(I) in that it is a legal requirement?

The answer would depend on what the van or lorry is classified as under the Schedule of Cost Components. If the vehicle (car, van or lorry) is specifically provided to an employee then, as a cost component, it would come under s1 People. If the vehicle use was such that it aligned with the definition of Equipment, then the cost would be recovered under the approrpiate category in s2 Equipment (determined largely by how it was paid for).

The insurance would form part of the cost under s1.People, although if classed as Equipment it may be a little more complicated as there is a requirement under the Insurance Table for the Contractor to insure for loss of or damage to Equipment.

Hi Andrew,

With NEC4 is the insurance for Peoples specific vehicles (i.e. company cars) described now deemed included in the Fee as the wording ‘meeting the requirements of the law’ is no longer in NEC4?