NEC Shorter Schedule of Cost Components Build Up Help

Good Morning,

We are a sub operating under an NEC 3 ECC option A set up and are required to translate our build up to NEC headers.

The work involves designing, fabricating and installing structural steel items. Our build up has been calculated as below:

Draughtsman (internal resource)
Design (external resource)
Purchase of steel materials
Purchase of plate materials
Waste allowance for materials and offcuts
Purchase of bolts
Deliveries to our wshop
handling of items in the wshop between stations(internal resource)
fabrication and assembly of steel components (weld, tacking, assembly) (internal resource)
coatings from a subcontractor (external resource)
delivery to site
erection on site
plant equipment used on site (our equipment)
travel and subsistence for guys as site is remote

subs fee is 20%
direct fee is 20%
overheads we’ve calculated to be included in our hourly rate

I’m unsure on the people vs manufacture and fabrication and whether the people used in fabrication are listed in “people” instead. We know how we have built it up internally, it’s just ensuring things are in the correct buckets to avoid unwanted procrastination over amounts instead of debating the substance of the compensation event.

Appreciate any help.

The key here is whether the resource is in Working Areas or not as component 1 for people specifically only reimburses people who are within Working Areas whereas component 5 reimburses for manufacture and fabrication outside Working Areas. Contract Data part two states that "the working areas are the Site and … " so check your contract to see if any areas have been included or not.

Thanks for the response. The contract has been amended to state that our offices and the site are both considered the working areas. Change anything?

It depends on what is covered by “offices” and how clear this is in the contract. If for example you have an industrial unit within grounds that has a manufacturing facility and offices it could be argued that “offices” means just that and that the manufacturing facility and anywhere else within your grounds are outside Working Areas.

By the way I’d assumed this was an NEC3 ECC however you mentioned that you are “sub operating” so I don’t know if that means you’re actually on an NEC3 ECS which is the subcontract version of the ECC?

Neil, Yes, good point. I just checked the contract and it says the site and the subcontractor offices…one to note for future to include site, subcontractor offices and workshop facilities on site.

Sorry, we are a subcontractor contracted to the main contractor on an NEC 3 ECS bespoked option A set up.

Does my comments above change anything in regards to where to put these elements in a SsOC build up as I’ve seen “Form 49 NEC comp event quote” and downloaded it from your website. It’s after downloading it that I came here to ask…

Let’s look at each one in turn:

Draughtsman (internal resource) - component 1 people assuming they’re within Working Areas = amounts paid
Design (external resource) - component 6 design assuming outside Working Areas and that rates are in Contract Data part two = rate x time spent + design overhead %
Purchase of steel materials - component 3 Plant and Materials = amounts paid
Purchase of plate materials - component 3 Plant and Materials = amounts paid
Waste allowance for materials and offcuts - component 3 Plant and Materials = amounts paid
Purchase of bolts - component 3 Plant and Materials = amounts paid
Deliveries to our wshop - component 3 Plant and Materials = amounts paid
handling of items in the wshop between stations(internal resource) - component 6 manufacture and fabrication = amounts paid
fabrication and assembly of steel components (weld, tacking, assembly) (internal resource) - component 6 manufacture and fabrication = amounts paid
coatings from a subcontractor (external resource) - Subcontractor cost broken down into separate components
delivery to site - component 3 Plant and Materials = amounts paid
erection on site - component 1 people = amounts paid
plant equipment used on site (our equipment) - component 2 Equipment = rates x time spent
travel and subsistence for guys as site is remote - component 1 people = amounts paid

The above gives you the Defined Cost which you apply your 20% fee percentages to.

Hope this gives you a more detailed / useful answer.

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Bookmarked and repped. Thank for very much kind sir. :pray: