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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECSC: Is there such thing as loss of profit?

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To answer your query, the Defined Cost is a defined term and defined in 11.2 (5). The definition has no heading for 'Defined Cost of loss of Profit', so this is not an allowable cost.

However, the definition does allow for "people employed by the Contractor," so under the definition, they fall within Defined Cost and, what is more, these words are replicated in clause 63.2. So the people costs in your second paragraph, unless I am missing a nuance in your question, are allowable as Defined Cost.

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