Disallowed Cost & Schedule of Cost Components under ECC options C, D & E
Why you should attend this workshop?
Disallowed Costs and the Schedule of Cost Components are some of the most complex and emotive areas of NEC3. Unfortunately these parts of the contract are often overlooked pre-contract. Given that the Schedule of Cost Components is the basis of payment under ECC options C, D & E, this can lead to a number of unpleasant surprises.
• The Basics: What are target and cost reimbursable contracts. How the ECC payment provisions work. Definitions of Fee and Defined Cost, including elements for subcontracting.
• Disallowed Cost: examples that are clear cut and not so clear cut for each bullet.
• The full Schedule of Cost Components: overall structure, nuances and areas of common discussion.
• Auditing: value for money vs. level of assurance.
You will learn about
At the end of the day, participants will:
• Know the background clauses, both core and specific to option C in terms of how payment is assessed.
• Achieve a common understanding of what counts as Defined Cost and Disallowed Cost.
• Know the structure of the Schedule of Cost Components (SoCC).
• Have greater insight into the common areas of discussion in the SoCC and a consensus common sense view on how they should be applied.
• Agree a common sense common approach to auditing Defined Cost.
This workshop is recommended for everyone currently involved with or about to be working under an ECC contract including project managers, contract managers, quantity surveyors, clients, consultants, planners, contractors and their supply chain. This session will be suitable for those who are relatively new to these forms of contract as well as those who are already more experienced in the contract and looking to enhance their level of knowledge and understanding.