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NEC ECC: Is there an average / typical direct fee % for Option A

0 votes
I am involved on the client side in a NEC Contract Option A where the Contract data Part 2 Direct fee % has been left blank in the signed contract.

If and when the discussion comes up that the Contractor does need a % to add to compensation events what is an average/typical figure that we should possibly negotiate around.
asked Oct 30, 2018 in General by Glen40 (140 points)  
Under a Main Option A the fee percentage would only apply to the assessment of compensation event quotations.  Consequently, review what people would likely be included in an assessment and check to see whether they would be working within the Working Areas.  If yes then they would be treated as a People cost, otherwise they would be deemed to be included in the Fee, which would influence the percentage.

2 Answers

+1 vote
Somewhere around 8% is typical, but you should never sign a contract with an entry left blank as there will always be argument over it !!!!
answered Oct 31, 2018 by Jon Broome (54,460 points)  
+1 vote
There is no standard percentage - it depends on your business, the type of work you do but the TYPICAL range would be anywhere between 6-14% but there may be reasons or type of work that may attract a higher or lower number than that.

Don't forget you are generally in a competitive tender situation at this point so you need to pick a number that will still win you the job (but not mean that you lose money).
answered Oct 31, 2018 by Glenn Hide (73,540 points)