NEC3 PSC Option E - Inclusion of Fee Percentage on Expenses

NEC3 and NEC4 Contracts Compensation Events
1

We have engaged a Consultant to undertake some early design feasibility i.e. RIBA Stage 1. We are utilising Main Option E.

We have recently instructed the Consultant to obtain existing utilities records and searches etc. Which would be an expense and recovered as a compensation event.

In submitting their quote they have included evidence of the costs of each search, but also included a handling fee of 11% for dealing with the searches.

I do believe this percentage inclusion is permitted as their is no fee percentage provision with the Part two - Data provided by the Consultant. The optional statement around expenses has also been completed by the Consultant and states N/A.

In terms of agreeing the cost of the CE should it be net cost of the expense incurred by the Consultant.

Please advise.

2

The handling charge is not allowable as an expensive.

However, if they can demonstrate time of a staff member in 'handling, then they can charge this as Time Charge as part of the compensation event. If there is no staff rate, then an appropriate one can be derived under clause 63.10.