In my scenario the Contractor has a plant hire agreement for the provision of plant (equipment) clearly different fees accrue for direct cost and subcontracted cost, so we are trying to determine the correct fee percentage to apply. I consider the plant hire agreement is a Subcontract under 11.2 (17) bullet 2. Service in the terms of ECC is not a defined term and the hire of Equipment to Provide the works could be argued to fall under this category. I would welcome your view on this
The section of the Schedule of Cost Components that applies is governed by how items are procured. Since these items are procured under a plant hire agreement they fall under the Equipment component of the Schedule of Cost Components.
If the plant hire agreement is on the basis of hourly, daily or weekly rates and the provider is not carrying any risk of performance then the hire is not a subcontract. In which case the plant is Equipment and the direct fee percentage would apply.