Adding Working Areas overhead percentage to defined costs within an Option C Application

When demonstrating defined cost within an Option C Application, where are you entitled to add the percentage for Working Areas (i.e. Site Supervision, Labour, Plant & Materials) & does that whole sum then attract the Direct Fee percentage.

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You apply the percentage for Working Area overheads to the people costs listed in section 1 of the Schedule of Cost Components. People 11, 12 & 13 are cost headings for people directly employed by the Contractor and People 14 is effectively for labour only subcontractors (not Subcontractors as defined in 11.2 (11(17))) or agency staff. So Subcontractor (big ā€˜Sā€™) people costs do not have the percentage applied.

The whole sum then attracts the direct fee percentage.