NEC ECC: Option A - Compensation Events - should Contractors management staff be included within the Defined costs or are these costs the direct fee percentage applied to the Defined Costs?

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Option A contracts should be used where little change is anticipated. Consequently, you should include the cost of management, whether site-based or head office in your Prices for the work in the Works Information.

Having said this, in order to get ‘margin’ recovery on compensation events, you fee percentage should include for the cost on non-Working Area management people as part of head office / regional overheads.