NEC 3 - Option E - Contractor currently applies a day rate to each individual when working within the Working Area (Providing the Works). We are conducting a people costs audit to ensure day rates are in line with the Schedule of Cost Components.

This would be by calculating the days spent on the project. 365 days (less weekends 104, less bank holidays 8) which would give a total of 253 days. We calculate the total cost of employment as per the SCC 11, 12, 13 and then divide by the 253 days to get a day rate. (Should we be including an allowance for Annual Leave / Sickness within this calculation?)

(1) The question is how is Sickness and Annual leave calculated and should these days be included within any calculations. Under the NEC (SCC) these are paid for when “Providing the Works” - Surely when off sick you / A/Leave you are not providing the works?

(2) Also if staff are part time how is sickness / annual leave calculated (is this just a % against time spent on the project)

(3) And finally, would we pick up the costs of university students if they are based on project ( (a)The cost of university course and also (b) the hours spent in university)