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NEC ECC: Option A - People Overheads

+1 vote
We have had a quotation for people and it includes their cars used to travel to site.
Would this normally be built in to the People Overheads?
I've looked through the green and brown book and this seems to be a bit ambiguous to me.

Many thanks
asked Nov 22, 2018 in SOCC SSOCC by brianmacdonald (140 points)  

1 Answer

+2 votes
The calculation of People Cost in the Short(er) Schedule of Cost Components is less distinct than the 'full' schedule, which provides reasonable definition of what is an 'allowable' cost component.

I don't see any reason why you would not calculate the People cost any differently under the SSCC, however, so a vehicle would be included as part of the rate calculation, where provided by the Contractor.

You would effectively 'liquidate' the cost and proportion this into a daily or hourly rate.

The 'people overhead' is to cover the items listed in the 'Charges' section, which typically includes for 'general Site running costs', so would exclude cars.

As a side issue, you could even review this cost specifically for each project, depending upon the distance travelled and the conditions encountered, to calculate a more accurate 'wear and tear' and 'maintenance' cost' by project, rather than applying an overall 'average'.  Not sure Finance / Accounts people will appreciate my comments though !!
answered Nov 23, 2018 by Andrew W-I Panel Member (27,560 points)  
edited Nov 23, 2018 by Neil Earnshaw