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NEC ECC: When pricing a CE when would the people fee percentage apply? Is it applied to every CE?

0 votes
For example we have CE which includes:

rates from the contract
Subsubcontract works

Would we apply the people percentage to the sum of the above costs? Would we apply the corresponding fees to the corresponding items - if so when / if does the people fee apply?
asked Oct 31, 2017 in Compensation Events by Nico (240 points)  
The Fee shalll be applied to the total Defined Cost of the CE or the difference if a new item of work supersedes an existing.

Then the Working Area Percentage stated in the Contract Data shall only be applied for people related cost which are identified in the Schedule of Cost Components (SOCC).

1 Answer

+2 votes
Best answer
The people fee is only applied to component 1 - people costs in the Shorter Schedule of Cost Components. You would then apply the direct fee percentage to the people, Equipment, Plant and Materials, charges, manufacture and fabrication and design costs. Any Subcontract costs would have the subcontract fee percentage applied to them.
answered Nov 1, 2017 by Neil Earnshaw Panel Members (21,690 points)