New People Rates for CEs
If, when assessing a compensation event, the People Rates do not include a rate for a category of person required, the PM and Contractor may agree a new rate. If they do not agree, the PM assesses the rate based on the People Rates. The agreed or assessed rate becomes the People Rate for that category.
Under Options A and B, if CE work requires a category of person not in the Contract Data People Rates, a new rate is established. The Contractor proposes a rate for agreement with the PM. Failing agreement, the PM determines it.
The PM's assessed rate may be lower than the Contractor's actual cost for that resource. The Contractor should agree rates upfront rather than leaving assessment to the PM.
📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.
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