Every pound counted, every rate sourced
Defined Cost built from evidence, not estimates - the valuation that stands up because every number traces to a document in The File.
- Project
- Crestfield Distribution Centre, Warrington
- Contract
- NEC4 ECC Option A · £3,814,200
- Period
- Month 7 of 12 · May 2026
- Reference
- CREST-VBU-CE009
- Prepared by
- BuiltAI Intelligence Ltd
- Fee
- 11.5% per Contract Data Part 2
Illustrative example: fictional project and parties.
Defined Cost plus Fee - not daywork, not guesswork
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 the actual cost of the changed work, broken into the Schedule of Cost Components - people, equipment, plant and materials, subcontractors and charges. The Fee (11.5% here, per Contract Data Part 2) is then applied. Every valuation follows the same structure: Defined Cost by component, each sourced from evidence in The File, the Fee applied at the end.
CE-009 - the Defined Cost build-up in detail
Structured per the Schedule of Cost Components; every line traces to an evidence item in The File. Deductions are taken for the 11kV work already in the Activity Schedule - the net additional cost, not the gross.
| Cat | Description | Evidence | Defined Cost |
|---|---|---|---|
| 1.1 | 33kV MCSET switchgear panel, supply only, delivered | EV-009-04 | £48,200 |
| 1.2 | Less: 11kV RM6 ring-main unit, in the original Activity Schedule | Act. Sched. | −£29,800 |
| Plant & materials sub-total | £18,400 | ||
| 2.1 | Extended civil base - 2.4m × 1.8m × 300mm reinforced concrete | EV-009-05 | £5,400 |
| 2.2 | Cable-trench diversion around the larger base - 3.6m | EV-009-05 | £2,800 |
| Subcontractor sub-total | £8,200 | ||
| 3.1 | HV jointer, 33kV dry-type stress-cone terminations - 3 days | Timesheet | £2,040 |
| 3.2 | Electrician attendance - 2 days | Timesheet | £840 |
| 3.3 | Site engineer supervision - 3 days (pro-rata) | Timesheet | £1,560 |
| 3.4 | Less: 11kV termination labour that would have been incurred | Act. Sched. | −£1,640 |
| People sub-total (net additional) | £2,800 | ||
| 4.1 | 33kV primary injection test set - 2-day hire, with calibration | Hire quote | £1,800 |
| 4.2 | DNO witness-test fee differential - £3,200 at 33kV against £600 | DNO schedule | £2,600 |
| Equipment sub-total | £4,400 | ||
| 5.1 | Site preliminaries - 1.5-week extension at £3,200/wk | EV-009-07 | £4,800 |
| Charges sub-total | £4,800 | ||
| Total Defined Cost | £38,600 | ||
| Fee at 11.5% (Contract Data Part 2) | £4,439 | ||
| Total CE-009 quotation | £43,039 | ||
The quotation was submitted at £43,039 - the Defined Cost of £38,600 plus the Fee (£4,439) - and the build-up above supports it. The deductions for the original 11kV costs show the "change in Defined Cost" approach: net additional cost, not gross.
£300,439 Valued - the full pipeline
The live variation pipeline, every CE with its valued position. This feeds 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 | £14,600 | Agreed |
| CE-003 | Late access to HV substation | £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 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 | |
Stage 05 gate - every pound sourced, every rate evidenced
- Defined Cost built per the Schedule of Cost Components.
- Every cost line traces to evidence in The File.
- Deductions included for costs already in the Activity Schedule.
- Fee percentage correctly applied (11.5%).
- Programme impact valued separately (the prelims extension).
- Total reconciles to the submitted quotation figure.
Hand-off to The Drop™: the CE-009 valuation is complete - Defined Cost £38,600 plus the Fee £4,439. Narrative, evidence and valuation are aligned. Compile the submission pack - cover letter, entitlement narrative, evidence index, Defined Cost build-up and assessed programme - to Alder's template.