NEC 4 Option C, Direct Fee % on CEs

The PM has asked us to remove our direct fee percentage on our CEs. Is this correct?

Assuming that you have Direct Costs within your CE and the contract has not been amended to omit the application of the Direct Fee to Direct Cost of work, then the the Fee is included in the valuation of the CE. Refer to CL 63.1

Cl 63.1 The changes to the Prices are assessed as the effect of the compensation event upon
• the actual Defined Cost of the work already done,
• the forecast Defined Cost of the work not yet done and
the resulting Fee.

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