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NEC TSC: Are direct and indirect fees added to all works or only CE?
We have a NEC3 TSC option A priced contract with price list. There is an agreed SOR that is applied to each order. Our agreed price list includes as an example for supply and fit small, medium and large kitchen with all associated builder works. Thus if the contractor installs a medium kitchen he would get the predefined amount which includes for all other associated works such as electrics, plumbing and tiling etc.
Questions are as follows:
1) Can indirect and direct fees be applied to this agreed price or is fees only for CE?
2) Our main Contractor purchases the kitchen from our framework supplier. The main contractor then sub-contracts the installation of the kitchen. Can the QS apply say 43% at 1.5% due to main contractor purchasing the materials and 57% at 0.5% for the sub-contract element of fitting the kitchen?
3) Can the 1.5% direct fee be applied to prelims too or is the fee only for "works"
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In answer to your questions :
1) Neither of what you say. As the price is in the Price List, you get paid what is in the Price List - see TSC option A clause 11.2 (17) and (19) with no addition of Fee.
2) I have no idea where you get these percentages from but regardless my answer is the same as in 1.
3) The fee is for compensation events where there is no existing rate - see clauses 63.1 and 63.2.
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