# NEC ECC: Option B, Contract Data part 2 fee percentages

**URL:** https://reachback.builtintelligence.com/t/nec-ecc-option-b-contract-data-part-2-fee-percentages/4232
**Category:** NEC3 and NEC4 Contracts
**Created:** [9 August 2017 17:30 UTC](https://reachback.builtintelligence.com/t/nec-ecc-option-b-contract-data-part-2-fee-percentages/4232 "2017-08-09T17:30:54Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![allybumaye](https://avatars.discourse-cdn.com/v4/letter/a/b5a626/32.png) [@allybumaye](https://reachback.builtintelligence.com/u/allybumaye)
#### Post date: [9 August 2017 17:30 UTC](https://reachback.builtintelligence.com/t/nec-ecc-option-b-contract-data-part-2-fee-percentages/4232/1 "2017-08-09T17:30:54Z")

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I am using ECC Option B contract and there is a few different viewpoints on how we apply the percentages listed within contract data part 2. If i have a compensation event with the following breakdown:

£2,000 - staff  
£2,000 - Labour  
£2,000 - materials  
£2,000 - plant

Direct fee, subcontract fee,people overhead and equipment are all 15%.

Would you apply 15% to each sub total in accordance with each category. eg 15% against staff or would you apply 15% to each category and then 15% direct fee against the total of the above again effectively applying 15% twice?

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### Author: ![Jon\_Broome](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/jon_broome/32/192_2.png) [@Jon\_Broome](https://reachback.builtintelligence.com/u/Jon_Broome)
#### Post date: [9 August 2017 17:47 UTC](https://reachback.builtintelligence.com/t/nec-ecc-option-b-contract-data-part-2-fee-percentages/4232/2 "2017-08-09T17:47:53Z")

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By :

- ‘plant’ I assume you mean ‘Equipment’ in NEC speak
- ‘materials’ = Plant and Materials.  
and staff and about are both counted as People

The calculation would be :  
Staff + labour = £4,000 x 1.15 (15% percentage for People O/H) = £4,600.  
Plant & Materials = £2,000 (there is no percentage)  
Equipment = £2,000 x 1.15 (15% percentage for adjustment for listed Equipment) = £2,300  
Sub-total = £8,900  
Total = £8,900 x 1.15 (15% direct fee percentage) = £9,245
