Within our subcontract data (option B subcontract) we have rates for the various types of people based on a shift rate of 12 hours. It states a shift rate (12 hours) in the Contract Data. This includes a pre-shift meeting to discuss the works and a number of breaks. We pay our operatives based on the shift rate.
We are applying the shift rate in our quotations for CES.
The client has assessed our CEs by removing the time for the pre-shift meeting and the breaks stating that the time is not spent in the Working Area as defined in the SSCC thereby reducing our shift time by two hours and our shift rate by 16%. Is this a valid reduction? Our defined cost is the shift rate albeit not for 12 hours in the working area.
Hi Paul, is it NEC3 or 4?
Clause 52.1 is clear and it states that the rates in the Contract Data must be used as Defined Cost, they are not subject to interrogation or change once in contract.
I am presuming that the rate is a lump sum which represents a 12 hour shift and therefore it sounds as if you are paid that rate whether you work one hour or 12 hours, which of course does not sound very equitable?
Where is the âpre-shift meetingâ being held?
It is NEC 4. The pre-shift meeting takes place in the site office adjacent to/on the site.
The contract data gives a shift rate, but states 12 hours - âShift Rate - 12 hoursâ The actual time working on site is 10 hours hence the client is proposing to reduce the shift rate to an hourly rate pro rated. The operatives are paid a shift rate.