NEC3: Compensation event assessment clarification - ECC Option C

NEC3 and NEC4 Contracts Compensation Events
1

Contractor is to undertake task X which is to take 5 days.
Contractor has a QS CE team who deal with nothing else but CEs
Contractor has plant hired for the duration of the project
Contractor has labour hired in on hourly rates

Compensation event is agreed which takes the activity to 10 days (no impact on Planned Completion)
Contractor includes QS time in quotation
Contractor includes plant for the additional 5 days.
Contractor includes the labour for the additional 5 days.

How is the impact of the Defined Cost assessed as a result of the CE as I don’t think it is specific in 63.1?
If the activity is viewed in isolation the Contractor can justify that additional cost of labour and plant was incurred.

If the activity is viewed collectively then the plant is on the job for the duration and so there is no additional cost as a result of the event as it is on weekly hire.
The labour could be justified if it can be demonstrated that the gang was for instance to be off hired after the activity.

From either perspective I do not see how the QS time can be included as the CE team is booking full time before the event and after it to the job. There is therefore no impact on defined cost.

Please advise.

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The intent of the contract is that compensation events are to ensure that the Contractor is not disadvantaged in terms of cost/time for any additional works, but equally not taking advantage either. Any cost that is not going to be incurred is not valid and the Project Manager would be right to make their own assessment.

If the QS is already on site full time and they do not bring anyone else in specifically to deal with this compensation event then then that should not be part of the quotation. Site cabins that they have on site for the duration are not claimable as they are already there. Cost of the men doing the work would be payable, and probably the equipment that they are using to do the works (even if it is on site it didn’t need to be, and will need to be maintained).