Price for Work Done to Date

PWDD in NEC stands for Price for Work Done to Date, the main figure in each assessment of the amount due. On Options A and B it measures completed work at the Prices. On Options C, D and E it's forecast Defined Cost plus the Fee, so it tells you what's been spent rather than what's been built.

That split matters because the same abbreviation answers different questions depending on the contract. Definitions sit in clause 11.2 of each main Option, and the full guide to the PWDD gives the numbers by Option and edition. This page is part of the NEC definitions glossary.

What "done" means

Option	What earns the money	What holds it back
A	Each completed activity or group of activities	An unfinished activity earns nothing, and a Defect that would hold up or be covered by the next work stops it counting as complete
B	Completed quantities at the rates, plus the completed share of lump sums	Unmeasured work; a similar test applies to Defects
C, D, E	The Project Manager's forecast of Defined Cost paid out by the next assessment date, plus the Fee	Disallowed Cost is left out of Defined Cost, and the Contractor's share on C and D is worked out separately

A worked example

A fictional culvert, with illustrative figures, at the third month's assessment. The Project Manager expects £160,000 of Defined Cost to have been paid by the next assessment date.

	Option A	Option C
Basis	Activities 1 to 4 complete at £35,000 each; activity 5 is 90% done	Forecast Defined Cost of £160,000, with a Fee of 8% (£12,800)
PWDD	£140,000 (activity 5 earns nothing yet)	£172,800
What the figure says	Four activities are complete	That's the money expected to go out, not progress

A high PWDD on Option C can even be bad news. It may show the job is burning through money faster than planned, so you'd compare it with the target and the programme before feeling good about it.

From PWDD to the payment

PWDD isn't what's paid. It goes into the amount due with other items:

1. Start with the PWDD.
2. Add other amounts the contract says are to be paid to the Contractor.
3. Deduct amounts to be paid or retained from the Contractor, such as retention under Option X16.
4. Compare with what's already been certified, because the assessment is cumulative.

Until a compliant first programme is submitted, where the Contract Data doesn't identify one, a quarter of the PWDD is held back (50.5 in NEC4, 50.3 in NEC3). See the payment timeline for how this runs across a month.

Why it causes problems

• Option A: arguing about 90% complete. The rule is simple and sometimes harsh. Activities that are too large create long gaps between payments, so split them sensibly at tender.
• Option A: cash flow from a thin schedule. A Contractor with six giant activities can be well into the job with little earned. See the Activity Schedule guide.
• Options C to E: treating the PWDD as actual cost. It's a forecast, so it needs checking against the records as they arrive. A consistently optimistic forecast overpays the Contractor early.
• Applying the wrong edition's wording. In NEC4 ECC C, D and E, the definition is at 11.2(31), against 11.2(29) in NEC3, so a number copied from an old letter may point to something else.
• Confusing it with Defined Cost. PWDD on cost-based Options includes the Fee, so don't quote it as cost in a share calculation.
• Thinking it's the Contractor's figure. The Contractor may apply for payment, but the Project Manager makes the assessment.

Related guides

• NEC Definitions: A Glossary of Key Terms
• Risk Register
• Scope
• Site
• Plant and Materials
• Prices

This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.