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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECS: Price fluctuations

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X1 is specifically about "inflation" rather than any price fluctuations. But not withstanding that, any compensation event that you are assessing you are basing it on prices/risk that you now know about. Therefore if the price for a particularly item is now more expensive than you priced for at tender stage, whilst for the contract works that would be your risk but any CE you can now price at the rate you know it would be - as per definition of Defined Cost.

You only use activity schedule rates under option A by agreement to assess a CE, and even then on a case by case basis. The activity schedule rate is largely irrelevant at that stage (unless you both agree otherwise).

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