Defined Cost - Percentages - Option A contract

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.

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See my answer here: