NEC4 ECC (Short) Schedule of Cost Components

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Note

21/3/2024: Moved out from Demarcation between Costs and Fee.

4/3/2024: NEC Schedules changed to table form.

29/1/2024: Created under "Demarcation between Costs and Fee".

Tabulated

Schedule of Cost Components

This schedule is part of these conditions of contract only when Option C, D or E is used. An amount is included

•       only in one cost component and

•       only if it is incurred in order to Provide the Works.

Short Schedule of Cost Components

This schedule is part of these conditions of contract only when Option A or B is used. An amount is included

•     only in one cost component and

•     only if it is incurred in order to Provide the Works.

People

1     The following components of the cost of

•     people who are employed by the Contractor and whose normal place of working is within the Working Areas,

•     people who are employed by the Contractor and whose normal place of working is not within the Working Areas but who are working in the Working Areas, proportionate to the time they spend working in the Working Areas and

•     the people listed in Contract Data who are employed by the Contractor, whose normal place of working is not within the Working Areas and who are working outside of the Working Areas other than on manufacture and fabrication and design.

If the Project Manager agrees, additional people may be assessed as if they were listed in the Contract Data.

People

1     The following components of the cost of

•     people who are directly employed by the Contractor and whose normal place of working is within the Working Areas,

•     people who are directly employed by the Contractor and whose normal place of working is not within the Working Areas but who are working in the Working Areas, proportionate to the time they spend working in the Working Areas and

•     people who are not directly employed by the Contractor but are paid for by it according to the time worked while they are within the Working Areas.

11     For people who are directly employed by the Contractor, wages, salaries and amounts paid by the Contractor for people paid according to the time worked on the contract.

11     Amounts paid by the Contractor including those for meeting the requirements of the law but excluding the Contractor’s mandatory contribution

•     under the Mandatory Provident Fund Schemes Ordinance (Cap. 485) and 

•     under the Occupational Retirement Schemes Ordinance (Cap. 426). 

12     For people who are directly employed by the Contractor, payments related to work on the contract and made to people for

(a)     bonuses and incentives

(b)     overtime

(c)     working in special circumstances

(d)     special allowances

(e)     absence due to sickness and holidays

(f)     severance.

 

13     For people who are directly employed by the Contractor, payments made in relation to people in accordance with their employment contract for

(a)     travel

(b)     subsistence and lodging

(c)     relocation

(d)     medical examinations

(e)     passports and visas

(f)     travel insurance

(g)     items (a) to (f) for dependants

(h)     protective clothing

(i)     contributions, levies or taxes imposed by law but excluding the Contractor's mandatory contribution under the Mandatory Provident Fund Schemes Ordinance (Cap. 485) and contribution under the Occupational Retirement Schemes Ordinance (Cap. 426)

(j)     life assurance

(k)     death benefit

(l)     occupational accident benefits

(m)     medical aid and health insurance

(n)     a vehicle

(o)     safety training.

 

14     For people who are not directly employed by the Contractor but are paid for by the Contractor according to the time they work, the amounts paid by the Contractor.

 

Equipment

2     The following components of the cost of Equipment which is used within the Working Areas.

Equipment

2     The following components of the cost of Equipment which is used within the Working Areas.

21     Payments for the hire or rent of Equipment not owned by

•     the Contractor,

•     the Contractor's ultimate holding company or

•     a company with the same ultimate holding company

at the hire or rental rate multiplied by the time for which the Equipment is required.

21     Amounts for Equipment at competitively tendered or open market rates, multiplied by the time for which the Equipment is required. 

 

 

 

22     Payments for Equipment which is not listed in the Contract Data but is

•     owned by the Contractor,

•     purchased by the Contractor under a hire purchase or lease agreement or

•     hired by the Contractor from the Contractor's ultimate holding company or from a company with the same ultimate holding company

at open market rates, multiplied by the time for which the Equipment is required.

 

23     Payments for Equipment purchased for work included in the contract listed with a time-related on cost charge, in the Contract Data, of

•     the change in value over the period for which the Equipment is required and

•     the time-related on cost charge stated in the Contract Data for the period for which the Equipment is required.

The change in value is the difference between the purchase price and either the sale price or the open market sale price at the end of the period for which the Equipment is required. Interim payments of the change in value are made at each assessment date. A final payment is made in the next assessment after the change in value has been determined.

If the Project Manager agrees, an additional item of Equipment may be assessed as if it had been listed in the Contract Data.

 

24     Payments for the purchase price of Equipment which is consumed.

 

25     Unless included in the hire or rental rates, payments for

•     transporting Equipment to and from the Working Areas other than for repair and maintenance,

•     erecting and dismantling Equipment and

•     constructing, fabricating or modifying Equipment.

22     Unless included in the competitively tendered or open market rates under item 21, payments for

•     transporting Equipment to and from the Working Areas other than for repair and maintenance,

•     erecting and dismantling Equipment,

•     constructing, fabricating or modifying Equipment, 

•     the purchase price of Equipment which is consumed. 

26     Payments for purchase of materials used to construct or fabricate Equipment.

 

27     Unless included in the hire rates, the cost of operatives is included in the cost of people.

23     Unless included in the competitively tendered or open market rates under item 21, the cost of operatives is included in the cost of people.

Plant and Materials

3     The following components of the cost of Plant and Materials.`

Plant and Materials

3     The following components of the cost of Plant and Materials.

31     Payments for

•     purchasing Plant and Materials,

•     delivery to and removal from the Working Areas,

•     providing and removing packaging and

•     samples and tests.

31     Payments for

•     purchasing Plant and Materials,

•     delivery to and removal from the Working Areas,

•     providing and removing packaging and

•     samples and tests.

32     Cost is credited with payments received for disposal of Plant and Materials unless the cost is disallowed.

32     Cost is credited with payments received for disposal of Plant and Materials unless the cost is disallowed.

Subcontractors

4     The following components of the cost of Subcontractors.

Subcontractors

4     The following components of the cost of Subcontractors.

41     Payments to Subcontractors for work which is subcontracted without taking into account any amounts paid to or retained from the Subcontractor by the Contractor, which would result in the Client paying or retaining the amount twice.

41     Payments to Subcontractors for work which is subcontracted.

Charges

5     The following components of the cost of

•     charges paid or received by the Contractor and

•     providing accommodation and transport for the Project Manager and Supervisor

Charges

5     The following components of the cost of

•     charges paid or received by the Contractor and 

•     providing accommodation and transport for the Project Manager and Supervisor

51     Payments for the provision and use in the Working Areas of

•     water,

•     gas,

•     electricity,

•     telephone and

•     internet.

51     Payments for the provision and use in the Working Areas of

•     water,

•     gas,

•     electricity,

•     telephone and

•     internet.

52     Payments to public authorities and other properly constituted authorities of charges which they are authorised to make in respect of the works, but excluding the Contractor's payment of levies to 

•     the Pneumoconiosis Compensation Fund Board under the Pneumoconiosis and Mesothelioma (Compensation) Ordinance (Cap. 360) and

•     the Construction Industry Council under the Construction Workers Registration Ordinance (Cap. 583) and Construction Industry Council Ordinance (Cap. 587). 

52     Payments to public authorities and other properly constituted authorities of charges which they are authorised to make in respect of the works, but excluding the Contractor’s payment of levies to 

•     the Pneumoconiosis Compensation Fund Board under the Pneumoconiosis and Mesothelioma (Compensation) Ordinance (Cap. 360) and 

•     the Construction Industry Council under the Construction Workers Registration Ordinance (Cap. 583) and Construction Industry Council Ordinance (Cap. 587).

53     Payments for

(a)     cancellation charges arising from a compensation event

(b)     buying or leasing land or buildings within the Working Areas

(c)     compensation for loss of crops or buildings

(d)     royalties

(e)     inspection certificates

(f)     charges for access to the Working Areas

(g)     facilities for visits to the Working Areas by Others

(h)     consumables and equipment provided by the Contractor for the Project Manager’s and Supervisor’s offices

53     Payments for

(a)     cancellation charges arising from a compensation event

(b)     buying or leasing land or buildings within the Working Areas

(c)     compensation for loss of crops or buildings

(d)     royalties

(e)     inspection certificates

(f)     charges for access to the Working Areas

(g)     facilities for visits to the Working Areas by Others

(h)     consumables and equipment provided by the Contractor for the Project Manager’s and Supervisors offices

54     Payments made and received by the Contractor for the removal from Site and disposal or sale of materials from excavation and demolition.

54     Payments made and received by the Contractor for the removal from Site and disposal or sale of materials from excavation and demolition.

55     Amounts paid by the Contractor in providing accommodation and transport for the Project Manager and the Supervisor.

55     Amounts paid by the Contractor in providing accommodation and transport for the Project Manager and the Supervisor.

Manufacture and fabrication

6     The following components of the cost of manufacture and fabrication of Plant and Materials by the Contractor which are

•     wholly or partly designed specifically for the works and

•     manufactured or fabricated outside the Working Areas.

Manufacture and fabrication

6     The following components of the cost of manufacture and fabrication of Plant and Materials by the Contractor which are

•     wholly or partly designed specifically for the works and

•     manufactured or fabricated outside the Working Areas.

61     Amounts paid by the Contractor for the manufacture and fabrication of Plant and Materials outside the Working Areas.

61     Amounts paid by the Contractor for the manufacture and fabrication of Plant and Materials outside the Working Areas.

Design

7     The following components of the cost of design of the works and Equipment done outside the Working Areas.

Design

7     The following components of the cost of design of the works and Equipment done outside the Working Areas.

71     Amounts paid by the Contractor for design of the works and Equipment outside the Working Areas.

71     Amounts paid by the Contractor for design of the works and Equipment outside the Working Areas.

72     The cost of travel to and from the Working Areas for the categories of design people listed in the Contract Data.

72     The cost of travel to and from the Working Areas for the categories of design people listed in the Contract Data.

Insurance

8     The following are deducted from cost

•     the cost of events for which the contract requires the Contractor to insure and

•     other costs paid to the Contractor by insurers.

Insurance

8     The following are deducted from cost

•     the cost of events for which the contract requires the Contractor to insure and

•     other costs paid to the Contractor by insurers.

Insurance premium

9      The following components of the cost of insurance.

Insurance premium

9     The following components of the cost of insurance. 

91      The amounts paid for each insurance stated in the insurance table.

91     The amount paid for each insurance stated in the insurance table.

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