In the Guidance Documents Appendix 4 a Model Tender Assessment is provided however it states this is to be used for Option A or B only. Why is this? Also at point 6; where the direct fee percentage is applied there is a line of values below the main line which appears to be redundant. Any ideas what is going on here?
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The reason is because there are some differences in how / what the percentages are applied between the options I.e. :
- Under options A & B, you use the Shorter Schedule of Cost Components for assessing compensation events only and it applies whether the work is subcontracted or not, whereas …
- under C, D and E you use the full SCC, not just for assessing CE’s, but reimbursing all the Contractor’s direct cost, but it only applies to direct costs with subcontracts being paid at cost in accordance with those subcontracts.
As a result, under options C, D and E you have the Contractor’s subcontract fee percentage applied on top of any Subcontractor’s quotation, whereas under A & B, it is assumed to cover any Subcontractor’s margin.
The last big change is that the Shorter SCC has the percentage for People overheads, where as the full SCC has the percentage for Working Area overheads which have different coverage.
In terms of referencing the Model Tender Assessment in the GN’s, I do remember when I looked at it, that it does NOT actually match how the Shorter SCC builds up costs ! One which does is in NEC3 A User’s Guide (precisely because of the issues with the GN’s)