Assessing Defined Cost under NEC 4 Options C, D and E

This CPD session discusses under options C, D and E, the assessment and payment of Defined Cost is fertile area for disputes in NEC Contract This session will include: • Determining the normal place of working for people employed by the Contractor • Assessing how time is allocated for working within the Working Area and what records are required (turnstile records, timesheets etc) • How is the weekly cost of directly employed people calculated and presented and dealing with sensitive information • Dealing with bonus and incentive payments and when do such payments qualify • Are rest days for shift work payable under Defined Cost • Distinguishing between people not employed by the Contractor but paid according to time working in Working Areas and Subsubcontractors (labour only) • Assessing costs of Equipment, including Equipment owned by the Contractor or its sister or parent company • How should Subcontract payments be assessed and what level of detail should be provided • What should typically be allowed for in the Contractor’s fee percentage