For example we have CE which includes:
rates from the contract
Would we apply the people percentage to the sum of the above costs? Would we apply the corresponding fees to the corresponding items - if so when / if does the people fee apply?
The people fee is only applied to component 1 - people costs in the Shorter Schedule of Cost Components. You would then apply the direct fee percentage to the people, Equipment, Plant and Materials, charges, manufacture and fabrication and design costs. Any Subcontract costs would have the subcontract fee percentage applied to them.
The Fee shalll be applied to the total Defined Cost of the CE or the difference if a new item of work supersedes an existing.
Then the Working Area Percentage stated in the Contract Data shall only be applied for people related cost which are identified in the Schedule of Cost Components (SOCC).