A Contractor has been engaged under option C target cost contract. They have stated a direct fee percentage and a subcontract fee percentage in their ECC contract data part 2.
Let’s say there are two subcontracts (subby X and subby Y), one the Contractor has chosen to let under option A, one under option C.
Change to the Prices for options A and C are Defined Cost plus fee.
For subby X engaged under an ECS option A contract, for their CE they build up their Defined Cost in line with their Shorter Schedule of Cost Components and then apply their subcontractor direct fee percentage to create a lump sum price. Price for Work Done to Date (PWDD) is then completed items on the activity schedule, and once the CE is agreed i.e. implemented it gets added to the activity schedule.
For subby Y engaged under an ECS option C contract, for their CE they build up their costs in line with the (full) Schedule of Cost Components, and would then apply their fee to create the change to the Prices. They are then paid on an actual cost basis.
Does this work fine? I have confused myself as to whether it works that one single subcontract fee percentage in the Contractors ECC contract data works in both situations if they have different forms of contract down the line under ECS?