Quantcast
Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
Viewing all articles
Browse latest Browse all 3204

NEC ECS: Option A - Add & Omit resulting Negative CE and Fee % is resulting in an overall loss

$
0
0
Can you give back something you never had in the first place?

Item 1 at £50k: Included in tender with agreed tender fee of 5%

Compensation Event:

Omit Item 1 at 50K using SSCC with Sub-subcon fee percentage of  12.5% (loss!)
Add  Item 2 of 25k using SSCC with Direct fee percentage of  8%

Tender        50000    5%        2500
Omit           -50000    12.5%    -6250 (never had this  to give back in the first place)
Add            25000    8%        2000
           
Nett            -25000    17%       -4250

Surely this isn't right or fair....

My automatic assumption is that only the tender fee is omitted and the agreed fee percentage is added back.

Any comments would be useful.

Thanks,

Viewing all articles
Browse latest Browse all 3204

Trending Articles