# NEC3 Option B - Defined Cost lower than BQ Rate

The original Works Information required 100 units of S.S. door, the priced BQ rate is \$3000/unit.

The PM has changed the Works Information to reduce the quantity to 80 units, and Fee % is 30%, Defined Cost is \$1800/unit, which is lower than the BQ rate.

The question:
I would like to know the principle of how to assess the cost of this CE? the contractor owns the credit ?

CE quotation :
-20 x \$1800*1.3 = -\$46,800

By remeasurement excercise, \$ to be paid to the Contractor:
-20 x \$1800*1.3 = -\$46,800
20 x \$3000 = \$60,000
Plus
80 x \$3000 = \$240,000

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Alan, welcome to the community.

Your logic & calculation seem correct, if \$1,800/unit is indeed the Defined Cost, based on the SSCC; See clauses 63.1 and 11.2 (22).

However, if the work had not been done at the dividing date - and it normally shouldn’t have if the PM instructed the change - the changed Prices after implementation (i.e. \$300,000 - \$46,800 = \$253,200) should be reflected in the BoQ by means of a changed rate and a changed quantity in accordance with clause 63.13, 1st bullet point. The respective line item in the BoQ would then read as follows: 80 units @ \$3,165 = \$253,200.

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