Frequently Asked Questions

We are a client using the NEC3 Professional Services Contract (PSC) but do not understand how to administer secondary option X1 price adjustment for inflation. Two scenarios exist in determining staff rates: fixed and variable. Where or how is it determined if the rates are indeed fixed or variable?

The answer lies in the way that the consultant defines its staff rates in the contract data part two. The PSC allows a flexible approach as to how the staff rates are to be defined by consultant. This can be done in separate ways, such as by name, by job title or by the salary range they are paid. The first two ways are fixed, because they are not dependent upon the salary the person is paid. However, the third way allows the rate to change in line with a person’s salary changes.

Therefore, you will need to look at the entry your consultant put in its contract data for the way to describe its staff rates. If it is by reference to the salaries paid, it will be variable. If it is in another way, such as by name or job title, it will be fixed.

Back to FAQs