Payment under the NEC Supply Contract


Under the NEC 3 Supply Contract, clause 50.2 states, payment is made for each lump sum item in the price schedule.

2 questions please:
1 - it also states under clause 50.2 ‘plus other amounts to be paid’ what is defined as ‘other amounts’ - is it VAT and alike or do money for additional works fall under this category?
2 - The supplier has listed an amount against compensation events, which have not been accepted by the Supply Manager. However the supplier deems the CE’s to be accepted by default as the Supply Manager has not responded to the notified CE. I believe the supplier is incorrect on this. Nevertheless, the question is, if no CE has been accepted (or if it is deemed accepted by default) and the supplier has not formally submitted a quotation for the CEs but instead listed them on the application for payment and stated an amount against each CE, and included this amount within the amount applied for in the application. Is the Supply Manager within his rights to assess those values at nil due to no formal quotation being submitted and instead the assessment is based on the items from the price schedule? And thus not be in breach of contract (if any breach is applicable here - this is mentioned as the supplier thinks the Supply Manager would).


Himmet this reference is to cater for the secondary X options (X1-20). These additional clauses are discretionary but allow amounts to be add or removed from the amount due but because the core clause work independently of these discretionary clauses which may or may not be include in the contract, the wording in clause 50.2 is a bit vague.

CE process and payment are dealt with separately. The Price Schedule is generally only changed through implemented CEs (clause 63.1/63.11, so from what you appear to be saying, it has changed with an unimplemented CE. This isn’t correct. On point to bear in mind however, is that the amount due under clause 50.2 does support changes in quantities in the Price Schedule, but the items would already need to be on the Price Schedule. These changes in quantity are allowed in the application for payment