The NEC ECC Option E SoCC states that Payments made in relation to People for Pensions is a Defined Cost and as such is recoverable. My question is what payments exactly? Pension contributions directly to the employee’s pension yes. But what else? I have a Contractor that is looking to recover not only this but also Pension Guarantee Payments, Pension Protection Fund Levy, Admin costs and trustee costs. Are all or any of these also deemed Payments made in relation to people for pensions?
Hi LHQS, there is no definitive explanation of the components in the Schedule of Cost Components, the guidance notes in Volume 4 offer little further or useful expansion of the lists under 11, 12 & 13. The whole premise of the SCC is that the cost has to be incurred in order to Provide the Works and either paid to a person or made in relation to their employment contract, so where it states under 13, ‘Payment made in relation to people in accordance with their employment contract’, it must be a cost incurred in order to Provide the Works and made in relation to a persons employment contract. There is no exact definition of what is or isn’t covered by the word ‘pensions’ in 13(j). My view would be if it is not expressly excluded it can be recovered, if denied payment led to a dispute it would be down to interpretation and the lack of express constraints or exclusions would probably rule it in.
Thank you Steve. Much appreciated.