NEC3 ECC Option C: Paying contractor for assumptions

NEC3 and NEC4 Contracts
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Hi everyone,
I’m working on an NEC3 Option C project where the contractor has submitted a CE for some additional work we’ve asked him to do.

Originally, it wasn’t clear whether we’d need to do the work at night (as it’s on a busy thoroughfare) or do it during the day.

The contractor included for night work, but actually managed to sort out what we needed within his normal working hours. I accepted the CE as it was for night work (before it transpired that day work was achieved), and the contractor is now claiming that he should be able to claim for the full amount of the CE.

My argument is, “it’s an Option C, I assess the amount due (cl 50.1, 50.2) and your records show it’s been done during the day. You get paid for the work you’ve completed as clause 11.2(29).”

Am I right in this? I appreciate on Option A you pay lump sum, but surely the benefit of Option C is to give me the room to pay for work which is actually completed?

Thanks all.

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I agree with you @Digital_Decagon.

The CE does not change - that is accepted and implemented - but you pay for the work actually completed, as you say. At the end we look at the PWDD and the Total of the Prices (or Target) and the Contractor is paid the Contractor’s Share of the saving per the Contract - i.e. the win is shared.

You are also right that if this was an Option A this would be a win for the Contractor.

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Hi

Andy is correct on this.

However, I would note that you stated the need for night work was unclear.

That being the case, had you issued an assumption that the work would be done during the day when accepting the CE, you would have raised the target by a lower amount.

A lesson to be learned for any PM. Don’t be afraid to discuss the CE and issue assumptions to price. The worst thing that came happen is you get another CE because the assumption led to an undervalued CE.

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