NEC ECS: Costs of rates included under NEC3 options C and E, CD2

How can I include costs for staff travel time ( subcontractors), and other travel time for commissioning and special labour resources, under CD2?

Further, can I include a procurement list of plant/ materials that we intend to buy or hire- if so, how?

The contract doesn’t provide for this and as such you would need to use Z clauses to amend the Schedule of Cost Components if you wanted it to work in a way that it wasn’t intended. Most costs are not reimbursed based on rates you have tendered, you are reimbursed actual amounts paid which you will have to prove. Option C and E are open-book style contracts and you need to be prepared for extensive audits / checks being carried out.

Under Options C& E you are paid Defined Cost plus Fee and Defined Cost is a defined term at clause 11.2(23) which explains what entitlement you have reimbursement for Subsubcontractor cost and other cost is reimbursed in accordance with the Schedule of Cost Components (assuming NEC3 ECS). NEC4 ECS works in broadly the same way but the Subsubcontractor element was brought within the Schedule of Cost Components.

So you can be paid for Subsubcontractor travel time provided the subsubcontract provides for this, otherwise the cost may be disallowed under clause 11.2(25) second bullet point (should not have been paid to a Subsubcontractor in accordance with his contract).

Commissioning and special labour resources would probably be reimbursed under the people component of the Schedule of Cost Components which provides extensive rules defining who is paid for and what is paid. Item 13 already includes for payments made in relation to people for travel, subsistence and lodging etc.

You need to pay close attention to the terminology used in NEC contracts as “Plant and Materials” are included in the works and “Equipment” is not, so if you hire plant e.g. a JCB, in this contract it is classed as Equipment. You have no need to include a list of items you intend to buy / hire and quote rates for these as you will be paid the actual cost for these items as and when you incur it. There are a couple of exceptions to this for Equipment for if it has been purchased specifically for the contract or special equipment, you can quote rates for these items in the CD2.