Defined Cost - Percentages - Option A contract

[bb_alabi1]

I was hoping that the reachback community would be able to help me with the theory of how to apply %’s on the example I have below.

Contract is NEC ECC Option A

Direct Fee is 9.5%

Subcontracted Fee is 9.5%

Working Area is “The site”

Data for Shorter Schedule of cost components (SCoCC) is:

People overheads 16%

Equipment Adjustment n/a

Design Overheads 15%

The Contractor has submitted a quote and within this quote there are:

• The contractors Defined cost in line with the SCoCC mainly:

  • People cost.
  • Materials cost.

• The subcontractors defined cost in line with the SCoCC mainly:

  • People cost
  • Design costs.

My question to the community is, which percentages apply to each area of the contractor’s quotation?

I’m sure I will have follow up questions but any help on the above will be greatly appreciated.

[Neil_Earnshaw]

See my answer here:

NEC3 ECC - Shorter Schedule of Cost Components Percentages

Taking each component in turn: People Amount paid by Contractor for Contractor’s people + % people overheads = sub total for Contractor’s people Amount paid by Subcontractor for Subcontractor’s people + % people overheads = sub total for Subcontractor’s people Plant and Materials Payments for purchasing Plant and Materials = sub total for Plant and Materials Design (Total hours worked by Subcontractor’s employees x hourly rates in Contract Data) + % design overheads = sub total fo…