The CECA Schedule of Contractors Equipment Rates (2019) states under Section B-6: The rates provide for Head Office charges and profit.
Upon pricing a compensation event, is the Contractor entitled to apply their fee percentage (from the Contract Data) to their plant items which use the CECA rates? I.e. is the fee non-applicable on the basis that head office charges and profit are already included?
For reference, the contract is NEC3 Option A.
The Contractor is entitled to Defined Cost plus fee. Defined Cost is determined using the SSCC - CECA equipment rates are used to assess Defined Cost in accordance with the SSCC, assuming listed in the contract data. In summary, the Contractor is entitled to both CECA rate (Defined Cost) and Fee.
As S Gowdy correctly states above the Contractor is entitled to Defined Cost plus Fee in the assessment of a compensation event, the Defined Cost of Equipment in your case is CECA +/- % stated in Contract Data part two.
It is the Client / Employer’s responsibility to ensure that all rates and percentages stated in Contract Data part two are market-tested as part of the tender process and also to make sure they understand how the contract operates.