Within an NEC4 Opt C, is the SoCC people and equipment rates used to assess the Contractors PWDD and CE value? i.e these rates are pre-agreed rates and used by the Contractor within the monthly AFP, or are these rates not considered defined cost and only used in the instance of assessing a Compensation Events?
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@BenM in NEC4 ECC people cost is assessed based on amounts paid by the Contractor for people, not based on rates. Equipment is different in that the SoCC provides for these costs to be assessed differently depending on the type of Equipment. Generally if the Equipment is hired from an external plant hire company the Contractor should be paid based on the invoiced cost. Internal plant is different so I recommend you check the details of this element of the SoCC against your contract.
Howver, when it comes to CEs the contract does allow the PM and Contractor can agree to use rates and prices instead of Defined Cost (but this doesn’t apply to assessments of the amount due) which might be easier in some scenarios. However if there’s no agreement it reverts to Defined Cost i.e. amounts paid.
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