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NEC ECS: Data for Shorter Schedule of Cost Components

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Subcontractor has applied Data for Shorter Schedule of Cost Components: as per below

•    (People) “All inclusive” daywork rates plus fee of 0%
•    List of equipment as published by CECA plus adjustment of – 25%

•    People + Equipment x Direct Fee % = Data for Shorter Schedule of Cost Components,

Contractor has replied No % addition applies to the “all inclusive” Labour Rates and that the direct fee of 10% does not apply to the labour element of a CE.?
asked Feb 18 in Compensation Events by jnnordschild (360 points)  

1 Answer

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This is something that is commonly argued after the event and should have been clarified prior to the contract being entered.

The Contractor has assumed that direct fee has been applied to the rates, although what the Subcontractor has written 'plus fee of 0%', doesn't say whether the 'people overhead' is also included.

Such differences frequently arise where terminology is used that is not recognised by NEC ('daywork', 'all inclusive'} and I think a sensible discussion is needed to confirm what the people rates include for..
answered Feb 19 by Andrew W-I (16,240 points)