Can we procure any goods through NEC4 PSC?
The background is that we have offered NEC4 PSC Option E for an Early Engagement Phase, but the programme requires that they procure some long lead time goods during this phase. The strategy is to switch to NEC4 ECC Option A or C once we are ready to start the Works phase.
From my understanding NEC4 PSC seems much better set up than NEC3 for the procurement of goods, NEC4 being based on Defined Cost rather than the Time Charge. It has item 21 in the Schedule of Cost Components for ‘Payments to Subcontractors for work which is subcontracted.’ Therefore if we were to procure goods, they would just add the amount they have paid to the subcontractor to the Application as Defined Cost and apply the appropriate Fee, but not the overheads associated with the People components.
The background is that we have offered NEC4 PSC Option E for an Early Engagement Phase, but the programme requires that they procure some long lead time goods during this phase. The strategy is to switch to NEC4 ECC Option A or C once we are ready to start the Works phase.
From my understanding NEC4 PSC seems much better set up than NEC3 for the procurement of goods, NEC4 being based on Defined Cost rather than the Time Charge. It has item 21 in the Schedule of Cost Components for ‘Payments to Subcontractors for work which is subcontracted.’ Therefore if we were to procure goods, they would just add the amount they have paid to the subcontractor to the Application as Defined Cost and apply the appropriate Fee, but not the overheads associated with the People components.