NEC4 Option C framework - Defined Cost & SCC

We are the main contractor on an NEC4 Op C Framework agreement and have been for the last 5 years. When tendering for a recent work order through the framework we were still using the original framework rates in the SCC from 5 years ago and applying a PAF with X1 chosen. When we sent our AfP we used the rates from the SCC again for this, but these are no longer accurate because they are 5 years old. How do I account for the change in cost over the last 5 years?

Can I put together evidence and update our SCC rates? Or do I only use the SCC as a guide of what I can claim and apply for actual costs incurred on our accounting system plus our fees?

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It’s difficult to answer this one as it will depend on the specific terms in your framework and the procedures it has for increasing rates in the framework as opposed to X1 which only applies to each call-off or work order as you call it.

Most frameworks would provide a mechanism for agreeing increased rates so check what this is and follow it. If it is silent then you may still be able to negotiate an increase unless the framework specifically states that the rates are fixed for the duration. In which case I would provide evidence to demonstrate how the original rates are no longer valid / up to date.

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Thanks for your response Neil, exactly what I needed to know.

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