NEC ECC: What costs are recoverable if Client stops work due to funding issues?

NEC3 and NEC4 Contracts Compensation Events
1

Can the Contractor recover costs under an NEC 4 ECC Option A contract when instructed for a revised CE quotation due to the orginal CE quotation not being accepted as it didn’t provide the level of detail required under the contract i.e SSCC breakdown?

The Client has had to stop work on site due to funding issues. The Contractor was issued a compensation event to stop works, make the site safe and demobilise. The compensation event quotation submitted hasn’t been broken down in any detail labour, plant, equipment in accordance with SSCC. The PM has instructed a revised quotation requesting the breakdown and the Contractor has responded requesting reimbursement to further produce the CE quotation. Is this allowed and if so what is deemed reasonable costs for providing CE quotation?

2

No, I don’t think this is reasonable. You can argue that the ECC is a bit light in terms of explicitly stating that what has to be shown in a quotation with the Short Form (ECSC) being explicit.

However, given that the contract gives a breakdown, I think it is reasonable to infer that the breakdown should be to the same level as the contract.

Regardless, not accepting a communication because more information is needed in order to assess it fully and giving “sufficient detail to enable the Contractor to correct the matter” i.e. what extra detail you require (all as per clause 13.4) is not a compensation event.