NEC4 Option B & Option D

NEC3 and NEC4 Contracts General
1

Dear All,

I have a project using NEC4 option B (BOQ was prepared by the Client) – I am unsure if my reading of the relevant clauses relating to errors in the BOQ are correct, can someone clarify if I am correct?

Clause 60.4 – a difference in quantity when the work is completed is only a compensation events if the three bullets’ points are meet – does the PM prove there has been a change in the defined cost i.e. reduced or alternatively the contractor has to prove the defined cost per unit has increased. So, a change in QTY alone is not a CE?

60.5 – A difference between quantities that cause a delay in completion – e.g. a quantity increases leads to a delay in completion – this is paid as a CE.

60.6 – Any departure from the agreed method of measurement or ambiguity or inconsistency – this is paid as a CE

How are undermeasures or over measures dealt with – is it under 60.6 as an ambiguity or inconsistency with the scope/drawings/project information. Clause 11.2(30) says PWDD is “the measure of the work which the contractor has completed for each item in the bill of quantities multiplied by the rate – am I correct in saying outside of the above clauses the contractor gets paid for the work done e.g. 100/m2 of tiles are in the tendered BOQ but 120/m2 was actually done – the contractor applies for the 120/m2 and the revised quantity multiplied by the tendered rate is the PWDD? -SO, outside of the terms of the above clauses it is not a CE but a remeasure? Or is it dealt with under 60.6?

I assume a reduction in quantities is also a remeasure and treated the same way?

1 Like
2

The short answer is yes.
Under an Option B the quantity risk sits with the Employer, the BoQ is re-measurable based on the initial WI/Scope but various additional CEs are available to cover errors on the BoQ.

3

Thank you for your responce - how are differences in quantities dealt with that do not fall under the above listed clauses - is there an additional clause that deals with “straghtforward” remeasures - e.g. 100/m2 of tiles not 120/m2 tiles? - is this included in the PWDD

4

The PWDD under an Option B, for BoQ items, is the total of the qty of work completed for each BoQ item multiplied by the rate (See NEC3 clause 11.2(28))