NEC3 ECC: How is a CE assessed under Option A when only the percentage for people overhead and the Equipment % have been inserted?

There is no Schedule of Cost Component and the only figures written into the Shorter Schedule are the two percentages noted above; people overhead % and equipment adjustment %.


Under Option A, the Shorter Schedule should be used for assessing CEs.

People cost should be assessed in accordance with item 11.

If there is no Equipment listed in the Contract Data or a published list then the Equipment should be assessed at tendered rates or open market rates as set out in item 27.

Material should be at purchase cost.

I assume that the direct fee and subcontract fee are stated in the Contract Data.

Many thanks Dave.

Just to clarify a couple of things.

The Schedule of Cost Components (or the Shorter SCC in the case of Option A) is not a pricing document in itself. It makes use of various rates and percentages stated in the Contract Data to arrive at an assessment of Defined Cost but doesn’t include them directly.

All of the percentages mentioned - People overhead, adjustment on Equipment, Direct Fee and Subcontract Fee - should be entered by the Contractor into Contract Data Part Two together with the published list of Equipment plus details and prices for any Equipment that sits outside of the published list.

I would respectfully suggest that if your documents are structured differently to this then they will either have significant amendments (Z Clauses) or may be non-compliant with NEC3.