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NEC ECC: Option B, Contract Data part 2 fee percentages

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I am using ECC Option B contract and there is a few different viewpoints on how we apply the percentages listed within contract data part 2. If i have a compensation event with the following breakdown:

£2,000 - staff
£2,000 - Labour
£2,000 - materials
£2,000 - plant

Direct fee, subcontract fee,people overhead and equipment are all 15%.

Would you apply 15% to each sub total in accordance with each category. eg 15% against staff or would you apply 15% to each category and then 15% direct fee against the total of the above again effectively applying 15% twice?
asked Aug 9 in NEC3 and NEC4 Contracts by allybumaye (120 points)  
   

1 Answer

+1 vote
By :
- 'plant' I assume you mean 'Equipment' in NEC speak
- 'materials' = Plant and Materials.
and staff and about are both counted as People

The calculation would be :
Staff + labour = £4,000 x 1.15 (15% percentage for People O/H) = £4,600.
Plant & Materials = £2,000 (there is no percentage)
Equipment = £2,000 x 1.15 (15% percentage for adjustment for listed Equipment) = £2,300
Sub-total = £8,900
Total = £8,900 x 1.15 (15% direct fee percentage) = £9,245
answered Aug 9 by Jon Broome (21,320 points)