In an Option C contract the SOCC has an agreed list of rates for plant and people. If the contract is severely delayed and has significant CE works instructed, can the Defined Cost rates be amended to take into account the time of instruction and the actual availability of resource. Or is the subcontractor obliged to use these loss-making rates infinitum at the behest of the main contractor.
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I’m assuming you are on an NEC3 ECS, because you say you are Option C, and there are people rates, which can’t occur in NEC4. I’m also assuming an unamended contract.
This may seem like a point of pedantry, but the SoCC does not contain rates. The Contract Data part 2 might. It also seems that you are doing your assessments using the Shorter Schedule of Cost Components, as you are using people rates.They do not exist in the full SoCC.
So, firstly, consider whether using the Shorter Schedule is actually appropriate. Its not compulsory; you have to agree, per 63.15. If you don’t agree you use the full SoCC. Its more work, but it might suit your needs. More things are built up from first principles.
If you stick with the Shorter Schedule, yes, you are stuck with the rates you agreed.
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Apologies for delay in replying. The issue above has raised its head again. NEC4 Option C subcontract where the SOCC has been deleted by Z Clause and replaced with a set of rates for people, plant and operated plant etc etc. the issue is the Original contract was a 3 month programme which is still on going 3.5 years later. failure to properly administer the contract has led to CE’s not being agreed and implemented correctly. the main issue is the Main Contractor insists on instructing new work and releasing packages of the original work and insists on using the original schedule of rates. A £250k contract is approaching £1.0M and is incurring significant losses with the further threat of a “pain” calculation to be made. Can the use of this schedule continue in perpituity ???
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