NEC3 ECC: Direct Fee under Option B

NEC3 and NEC4 Contracts
1

Under Option B Scope were reduced by the PM. He made his own assessment and removed the items as per the BOQ.

So he has accepted that Rates and not Defined Costs can be used in the assessment of CE’s.

If I submit a quotation for a CE and certain of the new works is actually an increase in the quantity of a BOQ item and therefore a CE am I entitled to add the General Fee percentage to that existing BOQ rate?

Secondly, if an BOQ item’s qty has increased and it becomes a CE am I allowed to add the General Fee percentage to the CE assessment?

2

Firstly, bill rates should only be used for the assessment of CEs by agreement. This agreement should be made on an individual, CE by CE, basis.

If you are intending to use bill rates to assess a CE then you should not be adding Fee (there is no General Fee, there is direct fee and subcontract fee) to the bill rate.

If a BoQ quantity has increased (or reduced) and qualifies as a CE then the assessment of the CE should be based on Defined Cost + Fee