When assessing a compensation event under the NEC3 Option A Contract how do you correctly apply the relevant fees to design costs?
The contractor directly employs a designer (off-site) and has reasonably forecast defined cost for design within their CE quotation.
Within the Contract Data Part 2 there is a prescribed design overhead percentage.
In assessing the design costs in this instance do you:
- Apply only the design overhead percentage.
- The design overhead percentage then the direct fee percentage.
- The design overhead percentage then the subcontract fee percentage.
In the instance of 2 and 3 is the direct/sc percentage applied to the defined cost element only to avoid fee-on-fee?