NEC ECSC: Subcontractor fee and Contractor fee applied to a compensation event?

NEC3 and NEC4 Contracts Time
1

Under NEC3 Short Contract when valuing a CE the Contractor has a contract fee of 10% on labour costs but he has subcontracted a specialist who has a contract fee of 15%.

When the Contractor values a CE using in part the subcontractor am I correct in assessing the CE at a Defined Cost of the Subcontractor at his labour cost plus his fee which should then become the Contractors Defined Cost and then add the Contractors Fee?

2

Not quite.

You are right in adding the 15% contract fee of the specialist onto his costs.You then need to apply the Contractor’s “percentage for overheads and profit added to other Defined Costs” rather than the "“percentage for overhead and profit added to the defined Cost of people”