We are operating an NEC3 ECC Option E Contract.
In section 43 of the SCC item (b) it states that payments for buying and leasing land is defined cost.
We have a main Contractor that has used a part of their office space to have an integrated team with the Employer. They are claiming that they are entitled to charge a hire rate for this space and are highlighting the aforementioned item in the SCC.
so the question is does the hire or purchase of land include the office space that covers it? or is it purely for the land itself and a charge for the accommodation is not included?
As I see it the wording in the NEC is quite clear and the term land would come to mean just the land and not the accommodation in terms of SCC 43 (a). the accommodation would not be able to fall under the term Equipment as it can not be removed from the working area (permanent structure) and therefore, these hire charges should be deemed part of the Fee as it is not a defined cost under the contract.