When calculating Defined Cost + Fee, does the WAOH charge % form part of the Defined Cost or is it treated separately?
Just wondering as the % charge isn’t technically a cost, but is it deemed a cost for the basis of calculating the Defined Cost?
The WAO, component 44 of the SCC, is part of Defined Cost. It is deemed to cover the items list in the clause (the actual cost of which are therefore excluded from Defined Cost).
if the actual cost is excluded from defined cost, then I assume the WAO fee must be added to the defined cost. This could cause all sorts of problems where the job cost system includes everything and you have to troll through and remove every item related to WAO. Is it not easier simply to omit the WAO % and pay as defined cost.
some Employers take the approach you mention and others do not. The answer was based on what the standard form requires.