NEC ECC: Can subcontractors quotations or invoices be used in quotations for compensation events?

NEC3 and NEC4 Contracts Compensation Events
1

Clause 11.2(22) is as follows:

"Defined Cost is the cost of the components in the Shorter Schedule of Cost Components whether work is subcontracted or not . . . . . . . "

Are there any circumstances under which the Project Manager would or should consider accepting a compensation event quotation where the subcontractor element comprises the actual cost paid to a subcontractor rather than Defined Cost of the subcontracted element?

2

Clause 11.2(22) basically means that rather than just pass on the subcontract cost as a lump sum plus the subcontract fee percentage, the cost needs to be broken down into people, Equipment, Plant and Materials etc. If done prospectively the Contractor carries some pricing risk on compensation event quotations i.e. the cost paid the Subcontractor may ultimately be more or less what was included in the quotation.