NEC ECC: Option C Schedule of Cost Components - People under NEC3

What is a contractor’s criteria for receiving payments for SoCC 1.13(o)?

Would this be all safety training? Regardless of specificity to the works? Including training which only benefitting the contractor?

Also, what does term ‘payment’ mean in this context? Would it be the full value of the training or a proportional payment depending on scheme duration/value?


Item 13 defines the NEC components of cost which are included in the calculation of an appropriate daily or hourly rate for a particular person under the S0CC and are not necessarily project specific.

A person’s specific role may require safety certification, such as a Sentinel Card for working on the railways or a BESC and PERSON certification for the power transmission industry. Such costs will be incurred on a periodic basis (say every 2 or 3 years) although are a necessary part of their role. There may also be training relating to CDM, RIDDOR, COSHH etc and company specific H&S schemes The costs of such training are included as a component of that person’s ‘charge out’ rate calculation under SoCC.

In direct answer to your question I would suggest that the ‘cost’ of 13 (o) would relate to payments made for training (external trainer, place on a course etc) and cost of licence(s). It may not specifically relate to the actual project but would be relevant to the person’s role, so for instance they may require a Sentinal Card but the project in question may not actually be working on a railway.

Remember that not all cost components are incurred in order to Provide the Works for a specific project but are related to the ‘cost to employ’. Note that NEC4 adds the words ‘in accordance with their employment contract’ under item 13, which emphasises this.

Once you have calculated a yearly cost in accordance with item 13, any cost incurred in relation to employment which falls outside of the calculation should be included in the calculation of the direct fee percentage. You then divide by (say) 225 days to obtain a daily rate, which is then paid according to the time worked within the Working Areas.

Thanks to for your response Andrew.

Could you clarify the last paragraph?

Are you saying anything extra over should be paid as a prorata payment of time within the working area or would be included in the direct fee percentage?

Many thanks.

What I was trying to say is that any cost related to a person’s ‘cost to employ’ which is not specifically covered by an item under s13 would not form part of their calculated rate under the SoCC so would, by default, need to be included in the direct fee percentage to ensure recovery.

The total yearly cost is divided by (say) 225 days to account for sick leave and annual leave, otherwise a company would pay the employee but not get paid under NEC where someone takes a day off (not working in the working areas). Alternatively you would need to include such amounts in the direct fee percentage, but I have not personally come across a situation where that has actually occured.