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Section 6Compensation Events

Clause 63.3

Assessing CE — Cost

Purpose

Cost assessment method depends on Main Option. Option A/B: rates from Activity Schedule/BoQ. Option C/D: Defined Cost plus Fee.

Practical Application

Contract Profile selection is critical. The assessment method changes completely between Options. Tools on this site adjust accordingly.

Common Pitfalls

Under Option C/D, the Contractor must demonstrate actual Defined Cost with records. Under Option A/B, the rate in the schedule applies.

Related Clauses

⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.