If the contractor procures materials/equipment should this attract the Subcontractor fee or the Direct Fee %?

Please confirm that materials/equipment purchased by the Contractor at site to undertake the works are not considered a Subcontract supply or should all “third party” supply be treated as subcontract and therefore attract the subcontract fee as opposed to the direct fee %. My understanding is that for costs to be considered as “subcontract” costs they must fall within the definition of a Subcontractor 11.2 (17) otherwise would fall within one of the cost components in the SCC under Equipment 2 or Plant and Materials 3.

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Your understanding is correct : for costs to be considered as “subcontract” costs they must fall within the definition of a Subcontractor under clause 11.2 (17). Otherwise they fall within one of the cost components in the SCC under Equipment 2 or Plant and Materials 3.