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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 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 by Andrew W-I Panel Members (21,010 points)