NEC ECC: What is WAO applied to

Under an ECC3 option C Defined Cost is the cost of the components of the SCC with SCC 13 (a) & (b) allowing the contractor to be entitled to claim for T&S if they are required to provide the works. Furthermore, 52.1 states that the Defined Cost only includes rates and percentages stated in the contract data.

With this in mind am I correct in concluding that T&S claims, i.e. mileage and hotel costs, are subject to overhead and fee percentages as is the case with other costs in the SCC? or am I missing something else in the contract that says otherwise?

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Under NEC3 ECC Option C, Defined Cost is defined at clause 11.2 (23) and essentially includes;

  • amounts due to Subcontractors,
  • cost of the components in the Schedule of Cost Components.

Clause 52.1 then states ’ … amounts calculated using rates and percentages stated in the Contract Data and other amounts at open market (rates) … '.

This does not limit what can be claimed, rather it provides an order of priority for costs. You first apply the ‘tendered’ or ‘contract’ rates and percentages, where applicable, before going down the route of open market rates. It doesn’t mean that a cost cannot be included where a ‘rate and percentage’ is not stated in Contract Data.

In your case travel and subsistence amounts would be calculated as a People Cost and then you would apply the Working Areas overhead charge then the direct fee percentage.