Under an option C contract, the Contractor has received a certificate for take over of the works on the same day as planned Completion. However, the contract Completion Date is one month away and the Contractor will have administration and overhead costs until the contract Completion Date. Where are the Contractors costs allocated during the period from take over to Completion Date?, i.e. defined cost or deemed to be included in the fee?
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In reality closing down an option C contract is a bit like closing a business down. Costs and payments will continue to be incurred after Completion.
In a standard nec option C contract the PM assess the amount due at each assessment date (clause 50.1). The first assessment date is decided by the Parties to suit the Parties and is not later than the assessment interval after the starting date (see Contract Data part one - usually monthly/4 weekly).
These assessments continue until four weeks after the Supervisor issues the Defects Certificate (usually 52weeks after Completion of the whole of the works).
Therefore the assessment of the amount due (based on Defined Cost 11.2(23))continues after Completion of the whole of the works. The Contractor must demonstrate that those costs have been incurred to Provide the Works.