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.

5,008 questions

5,336 answers


Register its Free

Download here

NEC ECC: Option B. Contract Data , Direct Fee

+1 vote
Could anyone please explain how we build up our Direct fee / whats to be included in this?
asked Jul 4, 2018 in Compensation Events by J (280 points)  

1 Answer

+2 votes
Best answer
Under a main Option B, the fee percentage would be applicable to Defined Cost in relation to compensation event quotations only.  In practice a fee percentage would be included within the BoQ rates, although this may not be obvious from the breakdown.

The direct Fee (NEC3) includes all costs which are not included in Defined Cost (clause 52.1).  This would include, for example, the following;

Non-project related overhead, including tendering costs,
Research and Development,
Bonds, guarantees and warranties,
Corporation tax,
Any costs specifically excluded from recovery under the Shorter Schedule of Cost Components.
answered Jul 4, 2018 by Andrew W-I (17,880 points)  
selected Jul 4, 2018 by Neil Earnshaw