NEC3 Option A - Recovery of People cost in circumstances where access is denied by the Employer

NEC3 and NEC4 Contracts Compensation Events
1

I have a query in connection with the calculation of People cost under a NEC3 Option A Contract;

  • Access has not been given to the Contractor by the Access Date;

  • Accepted as being a CE;

  • In relation to People costs, the SSCC says:

“Amounts calculated by multiplying each of the People Rates by the total time appropriate to
that rate spent within the Working Areas”

Although this is a NEC3 Contract the above wording has been taken from the NEC4 (SSCC).

Costs are being incurred by having the project people available while waiting for access to be provided.

How does Contractor recover its People costs incurred due to the CE if they are unable to get into the Working Area?

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2

@alan1 how are the working areas described in CD Part 2?

3

Hi Peter, The Working Area is just the Site to which access is not being given to. There has been no agreement to extend the Working Area.

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4

Hi @alan1 , I understand. If that is the case, you might have to explore other routes or recovery under common law.

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5

Hi Peter, Thank you for your thoughts on the matter.

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