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NEC ECS: Deduction for breaks?
Contract NEC 3 (Option B)
Subcontractors contract states 10 hour working shift,
For the purpose of CE the Subcontractor gets allocation sheets signed with the correct activities and the correct rates ( for the 10 hour working shift )
On the Contractors assessment of the aforementioned CE they deduct between 1 hour and 1.5 hours for "breaks",
Is the Contractor correct?
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The answer depends upon how the resources are actually paid, including whether they are on an hourly or daily rate or whether they are employees of the Subcontractor.
It looks like the CE is being assessed on a 'daywork' basis, which is fine if that is what has been agreed, but providing that method reasonably assesses the entire scope of the CE, including any ancillary tasks and consequential effects.
If the resources are employees then you will assess an annual 'cost to employ', in accordance with the SSCC then divide by the number of working days, to give a daily rate.
You could then divide this to give an hourly rate, but only where the total number of hours comes back to a whole day. For instance if you divide by 10 and by deducting a lunch break you are reimbursed a total of 9 hours for that day then it is not a true 'cost' of that person's time.
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