In an SME environment, a Commercial Director has allocated some of his costs under an Option C contract as Defined Cost - People. The company only have three commercial personnel and the Employers view is that director costs should be included in the Fee. However, the Contractor states that the job title of director title is unfortunate as the person needs to be hands on in the delivery of projects and actively undertakes the job of contract manager in delivery of the works. Should the Employer accept this cost or demand that this should have been covered by the Fee.
I would agree that this should be payable under element 11 of SCC (wages paid by the Contractor for people paid according to the time worked whilst they are inside the Working Areas) assuming they were on site whilst carrying out that role. You obviously need to prove that they are doing the role of the contract manager. It is not in the Contractors interest to have someone too expensive doing that role as it will eat into “gain share”.