News

QuantumCLS is providing commercial guidance and support to sub-contractors tendering under NEC contracts and specifically assisting each organisation in the establishment of the Fee percentage and the various percentages and data required within Contract Data Part 2 of ECC contracts which are as follows:

• The direct fee percentage*
• The subcontracted fee percentage*
• The working areas
• Key people
• The Works Information for the Contractor’s design
• The programme
• The completion date (if dictated by the respondent)
• The Activity Schedule
• The Tendered Total of the Prices*
• Type and cost of Equipment
• Working Area overhead percentage*
• Hourly rates for employees within the Working Area*
• Manufacture and Fabrication overhead percentage*
• Hourly rates for design employees outside of the Working Area*
• Travel expenses and which design employees can claim*
• People Overhead percentage*
• Identification of published Equipment lists and Markup/adjustment to published lists*
• Rates for other equipment not identified on selected published list*

All of those marked with an asterisk in the above list have a financial effect on the value of monies recovered within a Target Cost Contract through the application of the payment mechanism within the contract. Some have a lesser or greater degree of influence than others, depending upon the proportions of the buildup of the cost within the Target.

The various percentages and data required to be provided by those tendering under NEC3 ECC contracts are commonly misunderstood and in recognition of this, QuantumCLS has developed processes, procedures and templates to assist those tendering under NEC3 ECC contracts to establish appropriate percentages that are required to be included in Contract Data Part 2 of NEC3 ECC contracts such as:

• The direct fee percentage*
• The subcontracted fee percentage*
• The working areas
• Key people
• The Works Information for the Contractor’s design
• The programme
• The completion date (if dictated by the respondent)
• The Activity Schedule
• The Tendered Total of the Prices*
• Type and cost of Equipment
• Working Area overhead percentage*
• Hourly rates for employees within the Working Area*
• Manufacture and Fabrication overhead percentage*
• Hourly rates for design employees outside of the Working Area*
• Travel expenses and which design employees can claim*
• People Overhead percentage*
• Identification of published Equipment lists and Markup/adjustment to published lists*
• Rates for other equipment not identified on selected published list*

All of those marked with an asterix in the above list have a financial effect on the value of monies recovered within a Target Cost Contract through the application of the payment mechanism within the contract. Some have a lesser or greater degree of influence than others, depending upon the proportions of the buildup of the cost within the Target.

Alongside these processes, procedures and templates, QuantumCLS has developed a Target Cost Model that will analyse any Target Cost estimate and forecast the commercial performance of the scheme and simulate the Profit and Margin performance, which can then be used by the tendering organisation in adjusting the various percentages to achieve the desired Profit and Margin expectations.

QuantumCLS has been commissioned to provide commercial guidance and support to a well-established subcontractor to recover monies due after alleged incorrect termination, late issue of payless notice, late payment and incorrect valuation of sums due.

After initial findings QuantumCLS will be supporting the subcontractor in recovery of all sums due and costs incurred through to formal dispute resolution.

QuantumCLS has been commissioned to provide quantum expert advice in support of a counter claim to establish the cost of the work undertaken at a pre-determined point on a residential scheme in Twickenham on behalf of the developer.

The report will be used by the adjudicator in the determination of their decision and award.

QuantumCLS has been commissioned to provide quantum expert advice in support of a counter claim to establish the cost of the remedial work required to correct defects identified by the developers architectural and structural advisors following termination of the main contractors employment on a residential scheme in Cardiff on behalf of the developer.

The report will be used by the adjudicator in the determination of their decision and award.

Following the outbreak of a fire on a property in Gold Tops, Newport, QuantumCLS has been commissioned to provide quantum expert advice in support of an insurance claim to establish the likely cost of remediation and replacement of the fire damaged elements of the building and potentially negotiation of the claim with the loss adjusters appointed by the insurers.