SSOCC Relating to an Option A contract
Some of the contractor’s site based staff are working away from home and are staying in a hotel. Some of the operatives are staying in temporary mobile accommodation located in the site compound. All of these staff receive a daily subsistence payment.
In assessing compensation events, where these staff are delayed the contractor is claiming these hotel and subsistence costs as part of the on-costs related to the delay.
Should these costs be covered by the percentage for people overheads or included as an additional cost in the calculation of people costs? These staff have generally been working on the project for long periods not just doing works relating to compensation events.