NEC3 ECC: Option A - What are the effects of the Employer omitting sections of the work through PMI?

  1. Does the Employer get a saving if the work is omitted?

  2. Is the Contractor due any loss of profit etc?

  1. Yes this will be a compensation event, and therefore the quotation should be assessed as the cost that it would have been for the Contractor, plus any “prelim” type saving if the planned Completion is brought forward that the Contractor will now as a result not incur. You do not use activity schedule rates to assess this - unless by agreement.

  2. No - sorry but this quote should also include fee percentage (63.1)- so you do not get to keep loss of profit for this element. Any compensation event is assessed as Defined Cost plus fee, whether it is a positive or negative CE.