Under NEC3 ECS, the first paragraph under shorter schedule of cost components states " when options C,D or E is used, this schedule is used by agreement for assessing compensation events".
It does not mention when assessment compensation events under option B.
I am also using a percentage for people overhead in my compensation events as agreed under Data for the Shorter Schedule of Cost Components.
Firstly, the Shorter Schedule of Cost Components (SSCC) may be used under Options C, D or E by agreement instead of using the (full) Schedule of Cost Components (SCC). This is effected by an additional ‘compensation event’ clause (63.15), added with the ‘Option clauses’, which infers this right.
Under Options A and B the SSCC is used by default, in accordance with the definition of Defined Cost under these Options.
Similar in principle to the Working Areas overhead charge under the SCC, the people overhead charge under the SSCC is intended to simplify the financial administration process. (Note that this no longer applies under NEC4 and all costs are required to be presented.)
There is some debate on what this charge includes for and, conversely, doesn’t include for. The ‘hand tools not powered by compressed air’ has certainly raised some debate without there being a definite list of what is included. If it is not included in the charge, however, then it would be classed as Equipment and paid for under section 2.
A compactor or whacker plate, could fit into the above as it is not powered by compressed air and is operated by hand. Whether you would describe it as a ‘hand tool’ is another debate, although generally speaking, it would be classed as Equipment.
The items that apply to the ‘charges’ in the SCC and SSCC are for items which generally facilitate Providing the Works, rather than actually being used to Provide the Works. Although ‘lifting shackles’ could be included in this description, they are intrinsically linked to another item of Equipment, so I would also class them as Equipment, notwithstanding the fact that they are not necessarily operated by hand.