ECC Option D: What is the difference between Socc 1.3 (b) Subsistence and Lodging and Socc 2. Equipment -Accommodation?
We need to understand to understand the difference to properly classify the cost incurred by the contractor in paying the hotel accommodation of their Expat employees. Remembering that Socc 1.3 is subject to Working Areas Percentage as stated in Socc 4.4.
Subsistence and lodging for People is essentially for accommodation outside of working hours and would apply where working away from home.
Equipment Accommodation is for use in the Working Areas and would apply to; site cabins and storage units etc
One of the issues to consider is what is a reasonable cost for subsistence and lodging under People. If this applies, it may be worth adding some particular constraints around this, including Project Manager’s acceptance, or agreed rates to avoid a possible dispute between staying at the Ritz and a cheaper alternative, at a later date.