Frequently Asked Questions

Question
We are the contractor on an NEC3 ECC project. The schedule of cost components item 22 states that payments for equipment which is not listed in the contract data but is, for example, owned by us is at open-market rates, multiplied by the time for which the equipment is required. Can you please confirm what an open-market rate is? For example, I could call a hire company as an individual and be quoted £115 for a piece of equipment that I could get for £100 if I called as a contractor.
The open-market rate has to reflect the market that you as a contractor are in, not you as an individual. It is after all your firm and not you individually that is carrying out the work and using the equipment. It should be the best rate you can get after shopping around. If that is £100, then that is the open-market rate.

Back to FAQs