NEC3
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1. One very well known London practice of cost consultants raises its fees substantially on NEC projects to cover additional resources needed to administer the cost aspects of the system
2. The large number of companies involved on a large building project and the length of supply chains means that capturing cost information in regard to compensation events takes a long time. More often than not the project manager has to decide whether or not to proceed with a variation on cost estimates from the cost consultant which in due course get replaced by the actual cost. This practicality defeats the NEC rationale in respect of cost control and decision making.
3. Compensation events due to changes that are not caused by the contractor are reimbursed at cost and not related to tender pricing. This means the only basis of challenge is unreasonableness. For instance the factory overhead being claimed for additional work is impossible to police particularly in regard to say overtime, additional supervision and breakdown when other goods are being produced for other projects.
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