Option B - Compensation Event

Do compensation events raised on Option B have to be back-fitted into a bill of quants format so they may also be the subject of remeasure if further change happens later or are any changes to the CE just dealt with as further compensation events?

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I believe the clause you want to refer to is 63.13 included within NEC3 Option B which sets out how you are meant to assess Compensation Events, it also mentions here that these are ‘in the form of changes to the Bill of Quantities’.

On your point of further change, I would suggest this will be dealt with as another, and separate Compensation Event as set out in 60.1.

I’m guessing from your question you are worried the rate you include in your CE can then be used again should the quantities change ? In this instance CE 60.4 is available to you or if the Project Manager agrees you can use a lump sum to assess the event.

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Quotations for compensation events are usually lump sums and added into the BoQ in that format and not subject to remeasure. If the Project Manager and Contractor agree, rates can be agreed and the work remeasured. The remeasurement would not include further instructed change, that would be the subject of separate CE(s).

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Where CE’s are “usually” priced based on a lump sum these wont’ be remeasured, however regardless of whether you agree to use rates (clause 63.13, last para) or compile a new BoQ priced item as per clause 63.13, 2nd bullet, my understanding from guidance is that both scenarios will allow remeasurement of these items once inserted in to the BoQ (say for a change to the expected quants relating to that CE once the work is undertaken). The only scenario which is unlikely or won’t be subject to remeasurement is for ‘the work already done’, where in this instance a lump sum can be provided based on actual Defined Cost plus Fee (clause 63.13, 3rd bullet).