We are a client using the NEC4 Engineering and Construction Contact (ECC) Option A (priced contract with activity schedule). When calculating the amount due at the assessment date in clause 50.3, which of the first two bullet points do compensation events fall under? And is retention retained by the contractor from compensation events paid to the subcontractor?
In ECC Option A, the first bullet in clause 50.3, ‘the Price for Work Done to Date’, is determined by reference to the activity schedule (clause 11.2(27)) and is part of the calculation of the amount due. When a compensation event is implemented, it is added to the activity schedule (clauses 66.2 and 63.14). So, option X16 on retention (if incorporated) means retention will be taken from compensation events once they are implemented and completed. These fall under the second bullet in clause 50.3 on ‘plus other amounts to be paid to the Contractor’