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

Do you want to update your skills in NEC3, NEC4, JCT, Procurement, CDM or Project management?

Sign up for one of our free online courses.

4,671 questions

4,954 answers

861 comments

Register its Free

Download here

NEC ECC: Direct fee and subcontract fee on NEC3 ECC option E contract

+1 vote
544 views
If the direct fee and subcontract fee are applicable on the defined cost. What is the equipment over head, design overhead and people overhead used for - would this not fall part of the direct fee?
asked Nov 24, 2017 in NEC3 Contract Data by anonymous (1,880 points)  

1 Answer

+1 vote
 
Best answer
No, these three make up Defined Cost and are intended to avoid the need for the calculation of minutae when compensation events occur, so

- the percentage adjustment for listed Equipment is normally a negative percentage adjustment from a standard list, thus avoiding the need to justify (argue over) the costs of Contractor owned Equipment as well as produce an invoice for hired in  Equipment;

- the percentage for People overheads is to avoid the need for calculating the on-Site minutae of the costs listed in People 41 of the Shorter Schedule of Cost Components;

- the percentages for  design overheads is to avoid the hassle / complexity of calculating design office overheads on top of what is paid for an individual designer working outside the Working Areas.
answered Nov 24, 2017 by Jon Broome (48,090 points)