Cost assurance and audits on infrastructure projects and contracts Part 2: Guidance on actual/defined cost in cost-based contracts

摘要

THE following is general guidance relating to cost issues and identifies best practice in avoiding potential disputes before they occur. Problems occur when assessing whether people who are engaged in a project but are not site-based should be charged to the project. On New Engineering Contract (NEC) projects, this is dealt with by defining the working area which may expand to areas other than a contained project site. Careful consideration of where people will be working must be given from the outset and clearly defined in the contract, because the default is that they are included within the fee and so will not form part of the actual/defined cost. Where it is uncertain from the outset, ensure there is a mechanism whereby the project manager agrees to extend the working area prior to incurring any cost.