NEC4 Option C - Gain Share - Payment

NEC3 and NEC4 Contracts Payment
1

A contractor is going to receive a gain share under a Option C contract, as the PWDD is less the total of Prices. In regards to payment and assessment of this, I’m slightly confused, as there seem to be two options (must I comply with both):

54.3 - PM makes assessment on completion regarding forecast of PWDD v Price, then gain is paid in next payment application.
54.4 - PM makes final assessment using final PWDD v Price, final payment.

Therefore must the PM do this process twice and pay them twice? Or is 54.4 just used to make sure it the correct amount was paid in 54.3 after completion?

Thanks All

2

The process of assessing the share amount is formally undertaken twice by the Project Manager at Completion (54.3) and when the final PWDD and final total of the Prices is known (54.4).

Any assessed ‘share amount’ payment is not made twice as the payment mechanism operates on the basis of ’ … the change in the amount due since the previous assessment … ’ (51.1) so it is essentially the cumulative assessment less the previous cumulative assessment.

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3

Thanks Andrew. Helpful answer.