We are currently working on an NEC3 Engineering and Construction Contract (ECC) option C (target contract with activate schedule). Can you advise if the project manager is correct in his assessment of disallowing costs in relation to London congestion charges? The project manager views these are not being incurred in order to provide the works. Can these costs claimed for under the schedule of cost components (SCC) people item 13(a) - payment made in relation to people for travel?
'Provide the Works' is a defined term – see clause 11.2(13). It includes ‘all.. incidental actions which this contract requires’. An ‘incidental action’ the contract requires is for the people to travel to work and that will include incurring congestion charges if they travel into or through the congestion zone.
This cost will therefore fall within item SCC item 13(a). Equally it could fall within 13(i) or 13(n). Whichever it falls within, it is incurred to provide the works, as is defined in the contract.