I am currently pricing a main contract under NEC4 engineering and construction contract Option B. The contract data part 2 issued with the tender documents does not have a section to price people rates. It has a fee % plus a subcontract fee %. In the Bill of Quantities there are quantities of hours for labour and staff to be priced - the documents do not state if these are to include the fee % or not.
(1) Should contract data part 2 not include a section for pricing people rates?
(2) Should there only be a fee % in contract data part 2 and not a fee % and a subcontract fee %?
(3) If I do not include the fee % on the labour and staff rates priced in the Bill of Quantities can I then add the fee % to these as I will have included a fee % in the contract data part 2?
In answer to your questions :
(1) Should contract data part 2 not include a section for pricing people rates?
Yes, or at the very least a reference to a schedule where they are contained. You could reference those in the BoQ.
(2) Should there only be a fee % in contract data part 2 and not a fee % and a subcontract fee %?
Yes. NEC4 ECC only has one fee percentage.
(3) If I do not include the fee % on the labour and staff rates priced in the Bill of Quantities can I then add the fee % to these as I will have included a fee % in the contract data part 2?
Yes, especially if you reference them from CD Part 2. This fee percentage would only be applied when a compensation event occurs, but when else would you use labour rates ?
Having said all of this, I would check the Z clauses to see if the Client or their advisors have done something ‘clever’ or not (as is most likely).
OK Jon, thank you very much for the analysis and advice.