On an NEC3 Short Contract are there only two Fee Percentages that can be applied on a CE.
As part of the Contractor’s Offer, the contractor provides a “Percentage for overheads and profit added to the Defined Cost for people” and “Percentage for overheads and profit added to other Defined Cost”
Currently we are working on a framework contract which when tendered has a list of fee percentages, including People fee, Subcontract fee, Design fee, Direct fee and Equipment fee.
As part of the framework, we have been awarded a short contract for a small section of work, and within the contract data, included the people fee and direct fee percentages.
However on the first CE submitted, we applied the design fee to the design element, the people fee to the people, no fee to materials and then direct fee on all of the above.
This has been rejected due to the client stating that on a short contract there are only 2 percentages, and that apply percentages on top of percentages.
Inexperienced on the use of short contracts so can anyone shed any light on this?