NEC3 ECS: How are increased costs dealt with under NEC Engineering and Construction Subcontract

We are contracted under ECS, Option B.
We have numerous CE’s ongoing from design changes-leave downs etc and are being paid for work done to date, but some of these CE’s are ongoing- and will be for some time to come - how can we recover our increased costs?

There are three ways that this can be dealt with:

  1. ask for an extension to the CE quote until the facts are known that can be priced (least favorable option)
  2. Project Manager states assumptions on which to base the quotation to cut through any ambiguities/potential unknowns. This allows the CE to be quoted and assessed, and if the assumptions turn out to be incorrect these will form a new CE.
  3. Break the CE down into tangible elements that can be agreed progressively - e.g. CE01 is for the detailed design of something, and then once that is firmed up CE02 can be the installation works of what has come out of CE01.

Clause 63.1 emphasizes that broadly speaking CE’s should be a forecast of what have been reasonable to allowed for that event. The whole idea is that neither Party needs to wait to see what it actually cost in terms of money and time. Much better to agree it up front so both Parties understand respective liability.