Does the Working Area Overhead percentage get applied to People that are paid using Agreed Subcontract Rates?
The reason I ask is that when making an assessment the SOCC is not used when assessing labour which are done using the Agreed Subcontract Rates. Part 44 of the SOCC states "applying the percentage for Working Areas overheads stated in the Subcontract Data to the total of people items 11, 12, 13 and 14.
The confusion is that 11, 12, 13 and 14 of the SOCC does not apply as I am using the Agreed Subcontract Rates. However with some items such as PPE, this is based on defined cost (Excluded from the rates) this would fall within the SOCC.
I understand that people may point out the first items in the SOCC that states that People related to “people who are directly employed by the Subcontract and whose normal place of working is within the working areas”
Would be great to see what different people think as it’s one that had me scratching my head.