NEC3 ECC: How are interim assessments handled where the quantity in the BOQ is exceeded?

NEC3 and NEC4 Contracts Compensation Events
1

This is a two pronged question:

  1. Since the tender BOQ was incorrect in that certain quantities were underestimated and since by virtue of clause 60.7, we as the contractor, are to assume the BOQ was correct; we found that early in the project, quantities claimed for work completed already exceeded the BOQ quantity, how is the interim assessment made? Is this treated as a compensation event even if it is on an early interim application for payment? 60.4 states the ‘final’ quantity of work done yet the interim claim, although exceeding the BOQ quantity, is not yet final?
  2. Linked to the above question - 60.4 makes provision for a compensation event if the rate multiplied by the final quantity is more than 0.5% of the ‘total’ of the Prices. Does this mean 0.5% of the total of the Price for that particular item, or 0.5% of the total of the prices for the entire BOQ? We have a situation where, although quantities differ drastically from the tender BOQ, there are items allowed in the BOQ that were not actually required. The net effect is in fact a saving on the project as a whole.
2

Antony

I presume that you are on an Option B.

  1. the assessment of PWDD is the quantity of work completed multiplied by the bill rate. The provisions of clause 60.4 do not apply until the item of work (bill item) is completed.

  2. the 0.5% is in relation to total of the Prices at the Contract Date ie the entire BoQ/tender sum.