Under option A is the Contractor entitled to recover incidental staff (people) costs in assessing a compensation even where no programme prolongation has occurred or additional staff having to be employed?
Please take the example whereby a CE notified by the PM requires the Contractor to procure an additional subcontract. This task engages the contractors QS for 5 days, the PM 2 days and the Agent 2 days. As it is under option A I would state that this time is recoverable as the risk of prelim allocation is with the Contractor and whilst no additional staff has been employed the CE has theoretically deduced opportunity costs from the Contractor as these staff could have worked on other areas of the business. Please can you advise your understanding of this scenario.
Clause 63.1 requires you to do a comparison of the Defined Cost before the event and the Defined Cost after the event. The difference is the change to the Prices.
If the staff have to spend more hours on the contract due to the CE then these hours are recoverable under clause 63.1.
This topic was recently discussed by the NEC Contracts Group on linked In-a link is provided below:
https://www.linkedin.com/groups/3378841/3378841-6160323777172422658