NEC3 ECC Option D – Schedule of Cost Components – Health Insurance

NEC3 and NEC4 Contracts SOCC SSOCC
1

NEC3 ECC Option D – Schedule of Cost Components – Health Insurance
Contractor’s Position
Under the employment contracts of some of the Contractor’s people, there is an entitlement for health insurance. The Contractor interprets that this falls under SCC 13(d)- medical examinations or SCC 13(m) medical aid, the insurance being used to cover the costs for annual medical check-ups of the employees and in cases of hospitalization.

Project Manager’s Position
The Project Manager is of the view that health insurance is not part of item 1.3(d) – medical examinations of the SCC. The Contractor’s medical examinations should pertain only to pre-employment, annual medical examination, and when there are medical examinations due to accidents / illness caused in performing activities to Provide the Works.

Is the PM correct in its interpretation?

2

I would suggest that this comes under SCC 13 (m).

NEC4 adds the words ’ … in accordance with their employment contract … ’ which was probably intended to clarify situations such as this. I appreciate that your contract is NEC3, although I believe the principle intent is essentially ‘cost to employ’ with s13 providing cost categories to capture such costs.