NEC3 Option B - Assessment of Compensation Event under ECC Clauses 60.4 and 60.6

NEC3 and NEC4 Contracts Compensation Events
1

If the quantity stated in the bill of quantities is not correct, what is the difference of assessment of the CE under ECC Clause 60.4 and 60.6?

1 Like
2

Hello. It might be helpful if you could provide some more information on this, as the answer might change depending on the detail.

The CE under clause 60.6 is only triggered if there is a mistake in the BOQ which is either:

(1) a departure from the rules for item descriptions or division of the work into items in the method of measurement ; or

(2) due to an ambiguity or inconsistency.

So if the mistake you are referring to stems from one of the reasons above, then the PMs instruction to correct it would be a CE. This would be assessed in the normal way i.e. the change in Defined Cost and the relevant rates changed via clause 63.15.

The CE under clause 60.4 does not flow from a PMs instruction. It is triggered when the three criteria in clause 60.4 are met. In essence, this CE is triggered when there is a significant under or over measure in the BOQ. This CE would also be assessed in the normal way i.e. the change in Defined Cost and the relevant rates changed via clause 63.15.

If you can give more detail, I can take a further look at this.

1 Like
3

Dear William

Thank you for your reply

My case is there is BQ item with stated quantity 150m3 for excavation and the final quantity was 700m3 (without any change of Works Information, only measurement mistake in the BQ, drawing showing the quantity should be around 700m3). The three criteria in Clause 60.4 were met.

In this case, which Clause 60.4 or 60.6 should be applied?

Before applying Clause 63.15, if Clause 60.6 is applicable, what is the assessment? Is it only the Defined Cost (the sum) of the additional quantity of 550m3 should be assessed without considering the BQ stated quantity and unit rate.

Before applying Clause 63.15, if Clause 60.4 is applicable, what is the assessment? Is it only the Defined Cost (the sum) of the additional quantity of 550m3 should be assessed without considering the BQ stated quantity and unit rate (Y) OR assess the Defined Cost change per unit of quantity (X) and apply to whole quantity i.e. (Y-X) x 700m3

1 Like