We are using ECC option C on a project. Can you explain the mechanism for payment when a project is in a ‘pain’ situation. When do any pain payments to the contractor start for example, and a worked example would be useful?

Answer

The timescales for making this payment are set out in clauses 53.3 and 53.4. A preliminary assessment is made when completion is achieved, using estimates for the final price for work done to date and the total of the prices (i.e. ‘target’). The final assessment is made using the final figures. That is included with the final assessment, which is made 4 weeks after the supervisor issues the defects certificate (see clause 50.1). These dates are the same whether the parties (not just the contractor) are in ‘pain’ or ‘gain’.

The method of calculation is set out in clauses 53.1 and 53.2. A worked example is contained in the ECC guidance notes for those clauses where calculation c) refers to a ‘pain’ situation.