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NEC ECC: Data for Both Schedules of Cost Components Option C

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If you include rates in CDP2 for both schedules of cost components under:

Category of employee and hourly rate.

Can these rates be used to calculate the Defined Cost when assessing a compensation event for labour only subcontractors under 1.14 if for example you have a rate for an operative or do you use the actual cost?

The term states employee - would this mean labour only subcontractors would not fall under this category?

Note - the parties have not agreed to use the SSoCC.
asked Jun 11, 2019 in Compensation Events by Joseph Keenan (330 points)  

1 Answer

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If the rate in Contract Data Part 2 specifically refers to 'category of employee' then it would be a directly employed resource, with the rate reflecting this status and inclusive of the components in 11, 12 and 13 of the SCC..

A 'labour only' resource may have the same categorisation, for example 'sub agent', although their cost would be included under component 14 of the SCC.

You may end up with a similar hourly rate but an 'employee' and 'labour only 'supplied resource represent different components of cost and should be treated as such under the SCC.
answered Jun 17, 2019 by Andrew W-I Panel Member (27,560 points)