Expert advice in minutes not days. Register it's free and ask your first question now.
ReachBack is our free community help desk for construction professionals. A library of high-quality questions from real users with answers delivered and curated by a panel of industry experts.

4,240 questions

4,426 answers

538 comments

34,652 users

Register its Free

Download here

NEC ECC: Option A vs. Option C Subcontract Fee %

0 votes
87 views
In most circumstances, should the subcontracted fee % be higher on an option A than option C?
 
Option A states (22) Defined Cost is the cost of the components in the Shorter Schedule of Cost Components whether work is subcontracted or not excluding the cost of preparing quotations for compensation events.

I take this to mean that the Subcontractor's Fee % under his subcontract is not included in the main contract Defined Cost. Therefore on option A, should the subcontracted fee % under the main contract include for the Subcontractor's Fee % payable under the subcontract plus the Contractor's OHP ?

Option C states (23) Defined Cost is
• the amount of payments due to Subcontractors for work which is subcontracted without taking account of amounts deducted for
• retention,
• payment to the Employer as a result of the Subcontractor failing to meet a Key Date,
• the correction of Defects after Completion,
• payments to Others and
• the supply of equipment, supplies and services included in the charge for overhead cost within the Working Areas in this contract
and
• the cost of components in the Schedule of Cost Components for other work
less Disallowed Cost.

Therefore on option C should the subcontracted fee % under the main contract only include for the Contractor's OHP, as the Subcontractor's Fee % under his subcontract is included in the defined cost?

Thanks
asked Sep 18 in NEC3 Compensation Events by anonymous  
   

1 Answer

0 votes
You are absolutely right in your analysis ... not much more I can say !
answered Sep 19 by Jon Broome (23,720 points)