NEC ECC: Option B. Contract Data , Direct Fee

NEC3 and NEC4 Contracts Compensation Events
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Could anyone please explain how we build up our Direct fee / whats to be included in this?

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Under a main Option B, the fee percentage would be applicable to Defined Cost in relation to compensation event quotations only. In practice a fee percentage would be included within the BoQ rates, although this may not be obvious from the breakdown.

The direct Fee (NEC3) includes all costs which are not included in Defined Cost (clause 52.1). This would include, for example, the following;

Non-project related overhead, including tendering costs,
Profit,
Advertising,
Recruitment,
Research and Development,
Bonds, guarantees and warranties,
Insurances,
Corporation tax,
Any costs specifically excluded from recovery under the Shorter Schedule of Cost Components.