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NEC ECS: Option A Subcontractor refusing to breakdown hourly rates

+1 vote
We have a Subcontractor under an NEC3 Option A Subcontract. We have received a quotation for a CE and they have applied hourly rates for people and correctly applied the people overheads % and direct fee %.

I have asked for a breakdown of their hourly rates as we require the defined cost. They state that they are their rates and will not break them out.

What would be the best way to deal with this situation? Are they obliged to provide a breakdown of their rates?
asked Mar 7, 2019 in Compensation Events by trauts80 (440 points)  

1 Answer

+2 votes
If they are not willing to break these rates down then you could assess it yourself using what you consider to be open market rates (or threaten to do this and see if it gets a different reaction to being more willing to show evidence).

They are obliged to break the quote down in sufficient detail to allow you to decide whether it is the right cost, otherwise you have the right to assess it yourself if you don't think it has been assessed correctly (in accordance with the contract).
answered Mar 7, 2019 by Glenn Hide Panel Member (84,440 points)