NEC3 ECC: Is the direct fee relating to items that are off-site on an option C Target Cost Contract?

The Contractor believes the direct fee is not part of site costs.

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In main Option C the Defined Cost is amount of payments due to Subcontractors for work which is subcontracted and the cost of components in the Schedule of Cost Components for other work - this other work is work carried out by the Contractor.

The SCC has cost components 1 to 7 and includes cost component 5 Manufacture and Fabrication outside of the Working Areas and 6 Design outside of the Working Areas.

Clause 11.2(8) states that the Fee is the sum of amounts calculated by applying the subcontracted fee percentage to the Defined Cost of subcontracted work and the direct fee percentage to the Defined Cost of other work.