Frequently Asked Questions

We are the employer on an NEC3 Engineering and Construction Contract (ECC) Option C (target contract with activity schedule). The contractor has repeatedly prepared and sent quotations that have not been instructed by the project manager. All were notified events under clause 61.3 and the project manager decided all of them were, ‘not one of the compensation events stated in this contract’, in line with clause 61.4. Could the staff time to prepare such quotations be treated as a disallowed cost?
The simple answer is no and that is because such costs are not included in the definition of disallowed cost in the contract, see clause 11.2(25).

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