# Defined Cost - Percentages - Option A contract

**URL:** <https://reachback.builtintelligence.com/t/defined-cost-percentages-option-a-contract/6896>\
**Category:** SOCC SSOCC\
**Created:** [16 October 2020 14:45 UTC](https://reachback.builtintelligence.com/t/defined-cost-percentages-option-a-contract/6896 "2020-10-16T14:45:53Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![bb\_alabi1](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/bb_alabi1/32/388_2.png) [@bb\_alabi1](https://reachback.builtintelligence.com/u/bb_alabi1)\
**Post date:** [16 October 2020 14:45 UTC](https://reachback.builtintelligence.com/t/defined-cost-percentages-option-a-contract/6896/1 "2020-10-16T14:45:53Z")

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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:

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

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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**Author:** ![Neil\_Earnshaw](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/neil_earnshaw/32/515_2.png) [@Neil\_Earnshaw](https://reachback.builtintelligence.com/u/Neil_Earnshaw)\
**Post date:** [31 December 2020 10:44 UTC](https://reachback.builtintelligence.com/t/defined-cost-percentages-option-a-contract/6896/2 "2020-12-31T10:44:54Z")

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See my answer here:

> [@NEC3 ECC - Shorter Schedule of Cost Components Percentages](https://reachback.builtintelligence.com/t/nec3-ecc-shorter-schedule-of-cost-components-percentages/6922/2):
>
> 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…