We are carrying out a project overseas under NEC 4 Option A. We have received instructed instruction from the PM to stop/not start work.
Our labour is self employed so we cannot charge for them. We have 1 operative still working on the site being paid for on an agreed day rate currently.
Our UK office has remained open but majority of staff are working from home at this point.
Valuations, programme revisions, general correspondence, video calls, managing/inputting the daily diaries for the 1 person still on site etc, are still taking place by the QS/PM.
What can I include within my CE quote for this? If it wasn’t for this project the QS would probably have been furloughed and the office closed completely but the MD would like some clarity on the level of recovery he may or not get before he decides his next step.
Under Option A compensation events are assessed using the Short Schedule of Cost Components with the types of cost you refer to being classed as people and you are entitled to recover the cost of people using the People Rates in Contract Data part 2 or if not covered there at an agreed new rate.
Clarity over who you can include in the assessment is provided in component 1:
- directly employed people whose normal place of working is within Working Areas (WAs)
- directly employed people not normally within WAs but who are in WAs
- not directly employed people but who are paid according to time worked in WAs
You can see how each part refers to Working Areas which are defined as the Site and any additional areas stated in Contract Data part 2.
From this it seems clear that you can recover the cost of the operative and the QS / PM if they are normally on Site but not if they are normally office-based unless your office was referred to in Contract Data part 2.