Frequently Asked Questions

We are a subcontractor under an NEC4 Engineering and Construction Short Subcontract (ECSS) with an itemised price list, which is separated into supply and lay. Our client has changed the scope on a small area of a section which will reduce the quantity of material needed to complete this. Do we have to reduce the supply element of the price list?
The change in scope is a compensation event in accordance with clause 60.1(1). If the compensation event only affects the quantities in the price list, then the rates and quantities are used to assess this compensation event, see clause 63.1. However, if there are no quantities or rates in the price list, the compensation event will be calculated based upon the effect they have upon defined cost plus your fee, see clause 63.2. So, the answer to your question is that this change of scope can result in a reduction of the total of the prices.

Defined cost is calculated in accordance with clause 11.2(6). Your people will be costed using the people rates in the subcontract data and the cost of equipment will be based upon the rates in the published list of equipment, again set out in the subcontract data. The fee is defined in clause 11.2(8) and again refers to the fee percentage in the subcontract data.

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