NEC4 ECC: Option B: completion of data for sscc

NEC3 and NEC4 Contracts SOCC SSOCC
1

In completing a tender for a project, which is procured under NEC4, Option B, we find that the drafter of the documents has specified the categories of person the be rated in Section 6, data for the Shorter Schedule of Cost Components. It has also specified items of equipment under the subsection “rates for other Equipment…”. There are two parts to our questions in relation to this:

  1. Is this correct practice? Should Contract data Part 2 not be completed by the Contractor? Can it be part-completed by the Employer/ drafter as is being done here?
  2. Some of the persons and Equipment which the drafter is listing (and wants rated) will be Subcontractor resources - i.e. not labour-only or plant hire, but bona fide subcontractors (contracted to provide a service in the Working Areas).

Our understanding is that these should not be included in the SSCC, but will be costed, where applicable, based on subcontractors’ costs plus direct fee.

1 Like
2

In answer to 1., that is the intention as the Contractor will know how they categorise their workforce, but this would make it difficult to make to do like for like tender comparisons, which is presumably why they have specified the categories (which they can legally do). An argument down the line will be matching your internal categories to those in the contract.

In answer to 2. you are right and this illustrates the dangers of what the Client is doing: you can put ridiculously low rates, making you competitive at tender, knowing that they will never be used.

3

Thank you Jon. My thinking on it is:
(a) Not to rate the resources that the drafter has listed in contract data part 2, section 6 that are not applicable to our company; and;
(b) not to rate the resources listed that will be provided by bona fide subcontractors.