We are working on a NEC4 Option A contract on a project overseas.
We have submitted numerous CE’s relating to additional works & delays which have been agreed and implemented.
The project has been on hold for 12 months and recently we have submitted further quotes and included costs for labour and associated accommodation and subsistence which is now being challenged as being non recoverable.
In the contract under the SSoCC we have provided our day rate for labour and expressly excluded the costs for travel, accommodation and subs from the rate as they can vary.
We have then based these other associated costs based on actual costs plus our fee.
Is this correct?
Unlike in the full SoCC, there is no seperate item for travel, accomodation and subsistence. Accordingly, it is deemed to be included in the People Rate and not seperately recoverable. You note that these costs have been expressly excluded in your day rate, but you’d need consider whether your exclusion is sufficient to amend the contract