As Principle contractor we applied the subcontractor fee to a quote from a subcontractor for a compensation event. The sub-contractor had broken down their quote which included travel and accommodation. We have been instructed by the PM that the sub-contractors costs for accommodation and travel will not be paid by the client and must be met by the principle contractor from the sub-contractor fee percentage.
Can someone confirm this is correct.
What would have happened if we had submitted a lump sum plus fee percentage. would we be asked to breakdown and extract travel and accommodation from rates?