Frequently Asked Questions

Question
We are the contractor on an NEC3 ECC Option C. What should be included in an application for payment in terms of subcontractors? Are the costs to be included that shall be actually paid before the next assessment date, or just applied for by the subcontractors?

The answer will depend upon the terms of the subcontracts you have with your subcontractors and when you are forecast to pay them, see clause 11.2(29).

If your subcontracts require you to pay your subcontractors before the next assessment date, and if you can show you have in the past paid within that timeframe, their costs are included in your assessment. That is because the project manager can confidently forecast that they will be paid before the next assessment date, as per 11.2(29).

On the other hand, if your subcontracts require that you pay subcontractors after the next assessment date and you routinely do so, their costs will not be included in the assessment, because the project manager cannot forecast that they will be paid before the next assessment date. Note the way this principle applies to all defined cost in the assessment, including the costs for plant, materials and equipment.

Back to FAQs