NEC3 Option A - Assessing a CE under 60.1(1)

NEC3 and NEC4 Contracts Compensation Events
1

We are a Contractor working on a NEC3 Option A. The client has changed the design for an area of work and has instructed the change under 14.3.

There is an activity in the Activity Schedule for this area based on the original design. The change is a reduction of soft landscaped area and addition of hard landscaping. This will more than likely result in a reduction to the total of the Prices.

How is this CE to be assessed? Do we price the original design based on the forecast effect on Defined Cost and also price the new design based on the forecast effect on Defined Cost? The net result is the value of the CE?

2

yes, its the change in Defined Cost + fee. You will also be able to include for any abortive costs you may have incurred or are committed to.

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