Under NEC4 ECC Option A, compensation events are assessed as the change in Defined Cost plus the resulting Fee (clause 63.1). Defined Cost is not a lump sum or a daywork rate — it's the actual cost of doing the changed work, broken down into the Schedule of Cost Components: people, equipment, plant and materials, subcontractors, and charges. The Fee percentage (agreed in the Contract Data) is then applied to the Defined Cost to arrive at the total assessed value.
On this contract, the Fee percentage is 11.5% (Contract Data Part 2). Every valuation built by The Count follows the same structure: Defined Cost broken into components, each component sourced from evidence in The File, Fee applied at the end.
The full Defined Cost build-up for CE-009, structured per the Schedule of Cost Components. Every line traces to an evidence item in The File. The Fee (11.5%) is applied to the total Defined Cost.
| Cat | Description | Evidence | Defined Cost |
|---|---|---|---|
| 1 · PLANT & MATERIALS — Equipment differential | |||
| 1.1 | 33kV switchgear panel (Schneider MCSET)Supply only. Delivered to site. Replaces 11kV RM6. | EV-009-04 | £48,200 |
| 1.2 | Less: 11kV ring-main unit (Schneider RM6) — original priceDeducted — this was included in the original activity schedule. | Act. Sched. | −£29,800 |
| Plant & Materials sub-total | £18,400 | ||
| 2 · SUBCONTRACTOR — Civil works | |||
| 2.1 | Extended civil base — 2.4m × 1.8m × 300mm reinforced concreteExcavation, formwork, rebar, concrete, backfill. Labour + materials. | EV-009-05 | £5,400 |
| 2.2 | Cable trench modification — route diversion around larger baseAdditional 3.6m trench, duct, backfill, reinstatement. | EV-009-05 | £2,800 |
| Subcontractor sub-total | £8,200 | ||
| 3 · PEOPLE — Skilled labour for cable terminations | |||
| 3.1 | HV jointer — 33kV dry-type stress-cone terminationsSpecialist termination. 3 days × £680/day (HV jointer rate per SCC). | Timesheet | £2,040 |
| 3.2 | Electrician attendance — cable preparation and support2 days × £420/day. | Timesheet | £840 |
| 3.3 | Supervision — site engineer attendance during termination3 days × £520/day (pro-rata). | Timesheet | £1,560 |
| 3.4 | Less: 11kV termination labour — deducted (would have been incurred) | Act. Sched. | −£1,640 |
| People sub-total (net additional) | £2,800 | ||
| 4 · EQUIPMENT — Testing & commissioning | |||
| 4.1 | 33kV primary injection test set — hire2 days hire inc. calibration certificates. Not required for 11kV. | Hire quote | £1,800 |
| 4.2 | DNO witness test fee — 33kV (differential)33kV witness fee £3,200 vs 11kV fee £600. Net additional £2,600. | DNO schedule | £2,600 |
| Equipment sub-total | £4,400 | ||
| 5 · CHARGES — Prelims extension | |||
| 5.1 | Site prelims — 1.5-week extension to planned CompletionWeekly prelims rate £3,200/wk × 1.5 weeks. Driven by DNO witness testing lead time extension (4 wks vs 2 wks). | Programme | £4,800 |
| Charges sub-total | £4,800 | ||
| TOTAL DEFINED COST | £38,600 | ||
| FEE | Fee percentage applied to Defined Cost11.5% per Contract Data Part 2 | £4,439 | |
| TOTAL CE-009 QUOTATION | £43,039 | ||
Quotation submitted as £43,039. The detailed build-up above supports the submitted figure. Every line references evidence in The File. The deductions (original 11kV costs that would have been incurred anyway) demonstrate the "change in Defined Cost" approach — not gross cost, but the net additional cost caused by the compensation event.
The Count maintains the live variation pipeline showing every CE with its valued position. This feeds directly into the Margin Cockpit (Pack 05) for monthly margin tracking.
| CE | Description | Valued | Status |
|---|---|---|---|
| CE-001 | Additional fire-rated cable penetration seals | £8,200 | Agreed |
| CE-002 | Revised BMS point schedule — 34 additional points | £14,600 | Agreed |
| CE-003 | Late access to HV substation — 3-week delay | £41,800 | Agreed |
| CE-004 | Unmapped gas main in cable trench zone | £22,400 | Agreed |
| CE-005 | PM stop instruction — archaeological find | £16,800 | Agreed |
| CE-006 | EV charging specification upgrade — 22kW to 50kW DC | £38,200 | Agreed |
| CE-007 | Late issue of revised ventilation design | £18,400 | Agreed |
| CE-008 | Additional external lighting columns | £25,800 | Agreed |
| CE-009 | HV switchgear design change | £43,039 | Submitted |
| CE-010 | Concealed asbestos in riser duct | £12,400 | Submitted |
| CE-011 | Late power-on date from DNO | £18,200 | Submitted |
| CE-012 | Additional emergency lighting to mezzanine | £7,800 | Submitted |
| CE-013 | Fire alarm panel relocation | £12,200 | Valuing |
| CE-014 | Late landlord BMS integration spec | £20,600 | Valuing |
| Total Pipeline | £300,439 | Agreed: £186,200 | |
Before a CE moves to The Drop (Stage 06), The Count confirms: the Defined Cost is built from source evidence (not estimated), deductions for work that would have been done anyway are included, the Fee is correctly applied, and the total reconciles to the submitted quotation figure.
Handover note to Stage 06 — The Drop™: CE-009 valuation complete at £43,039 (£38,600 Defined Cost + £4,439 Fee). Narrative, evidence and valuation are all aligned. Compile the submission pack: cover letter, entitlement narrative, evidence index, Defined Cost build-up, assessed programme. Format per Alder's submission template.