When a Subcontractor commences an NEC3 contract (based on a 12 month they provided daywork labour costs for option A (all inclusive daywork rates) and option B (non-productive daywork rates) for incidental dayworks and works of a minor nature.
During the course of the project the Contractor hadn’t produced an Accepted Programme and incidental works through the first seven months accounted for 65% of all works completed to date,
Therefore would the Subcontractor be entitled to the Rates for such labour which have not been outlined in the Subcontract and the CECA Rate will apply for are as follows:
• “All Hired Plant Drivers and labour Subcontractors accounts to be charged in full (without deduction of any cash discounts not exceeding 2.5%) plus 88% “
• “Subsistence or lodging allowances and periodic travel allowances (fare and/or time) paid to or incurred on behalf of operatives are chargeable at cost plus 12.5%”
• “Wages paid to operatives – 148%”
Firstly you haven’t stated which main option you are working to, as you mention both A (Activity Schedule) and B (Bill of Quantities).
Apart from this, however, the valuation of work completed in accordance with the defined scope would be based on completion of either the stated activities in the activity schedule (option A) or items in the Bill of Quantities (option B).
Any ‘incidental’ work is a reference to the CECA Daywork rates for work which is ‘incidental to contract work’, so is not part of the scope. Under NEC you would use the Shorter Schedule of Cost Components to calculate the price for such ‘incidental’ work, which would be work directly associated with a compensation event.
You could use the CECA rates if these are stated in your Contract Data, although otherwise you would need to build up a People cost based essentially on ‘cost to employ’.
To be clear, there is no ‘default’ list of rates to refer to, unless they have been specifically stated in your Contract Data which you would have filled in as part of your tender submission.
You need to apply the wording of the contract to get the correct answer here. There is no such thing as “incidental” and “non-incidental”. You price the works at tender stage, and then anything that was not in the scope or anything that happens is not your risk is then able to be claimed as a compensation event. You then need to follow the rules of the contract as to how to assess a compensation event - in terms of quotation and assessment.
Very important as well you keep an up to date Accepted Programme during the life of the project so you can assess/demonstrate entitlement for each and every event.