NEC Few Minutes | Pain Gain Share Mechanism | Concisely Explained | Not that difficult | Gordon Kwok

[@bornforbanning]

Gordon may you please advise as to when there is no programme in contract data and contractor does not submit a first programme in the time it is supposed to, the PM is entitled to withhold a quarter of the PWDD from the assessment. Is the contractor still entitled to the PWDD less this quarter plus the fee? Or is the fee also impacted?

[@bornforbanning]

Think I understood from your Payments video that under Option C PWDD Includes the Fee, so in this case I believe we simply deduct 25%.

[@NECFewMinutes]

Have a look at the definition of PWDD in Option C. That is the ground when we say PWDD includes the fee. 11.2(31) in NEC4 ECC.

[@luyaopeng6468]

May I ask a question that is that possible to apply two pain gain share in the same contract, e.g., for EPC contract, use two pain gain share in E & P and C cause E & P has higher certainty and C has higher uncertainty. is this feasible and any potential risks?

[@NECFewMinutes]

It is possible as long as such mechanisms can be clearly specified in the contract data. It is not conventional, but it is possible. In fact, there have been some very innovative pain/gain sharing mechanisms around in the industry. The risk of course depends on how you make that happen. Clarity and certainty is key.

[@jerrymidling1520]

有d 印度人feel 🤣

[@NECFewMinutes]

😎 Let me try harder.