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NEC ECC: Bespoke Schedule of Cost Components used - What Fee's can I apply?
I have a query regarding an Option A contract (poorly written as it has elements of Option C within it).
CD Part II states the Direct Fee, Subcontracted Fee, People Overhead % and Working Area Overhead % which have all been populated.
Normally, an Option A would use the SSCC to calculate CE's. However, the client has used it's own "Schedule of Cost Components" which looks in comparison like the full schedule.
The Client is now querying why i've used the WAO percentage as this is not used in Option A.
Does the normal rules apply or do i just say that the contract states that Fee is to be applied to the defined cost schedule provided by the Client and in the contract, based on the percentages in the Subcontract Data?
Sep 25, 2019
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It is difficult to provide a direct answer as you say the contract has been amended although it is not clear exactly what has been amended.
The Contract Data Part 1 should state what main option is used and the definition of Defined Cost should state whether you are to use the Schedule of Cost Components (SCC) or the Shorter Schedule of Cost Components (SSCC) to assess Defined Cost.
If the SCC then you would apply the Working Areas overhead charge, if the SSCC then you would apply the percentage for people overheads.
This presumes that no changes have been made to the SCC or SSCC of course.
Oct 2, 2019
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