NEC ECC: Health and safety equipment charges under Option B

A quotation was requested by the client and subsequently returned by the Contractor for works outside of the BoQ (option B being used) and Works Information.

The works mainly involved the provision of labour for ad hoc tasks and did not interrupt the programme or any other works.

The quotation returned by the Contractor included for staff as the agreed hours and materials provided, all with the relevant percentages for overheads and profits applied.

The Contractor’s quotation also included for what is generally categorised as PPE (gloves/ Hi Vis the list goes on). Should this:
a) be included as the works on the CE are outside of the Works Information.
b) be considered as part of the overheads and profits percentage
c) be disregarded as it falls under the Contractor’s obligations as part of H&S legislation.

Any help would be appreciated

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PPE would be considered as ‘protective clothing’ which is an item listed in the FULL Schedule of Cost Cost Components as being directly reimbursable. However, as you are under the option B, the SHORTER Schedule of Cost Components apply which just says for People “11. Amounts paid by the Contractor including those for meeting the requirements of the law”. At least some of the PPE would count as this.

In addition, the Guidance Notes say something like - from memory - that of you get stuck, use the full Schedule as a guide.

So the answer is a strong “probably Yes.”

I have never considered employee welfare as an optional extra. If people costs are to include all requirements for meeting applicable legislation, which we have to approach holistically and not limit to costs for NI payments, then this would indicate that the costs would cover PPE or at the very least would be a Contractor overhead.