NEC3 ECC Option A: The Contractor has submitted a quotation for a CE. In determining the Defined Cost the Contractors has applied the rates for People in accordance with the rates in the SSCC, then applied the Percentage for People Overheads at 20% in accordance with the Contract Data in Part 2.
The Contractor has then summed the amounts for People, Equipment & Materials and applied the Direct Fee Percentage at 25% in accordance with the Contract Data.
The Subcontract Amounts of the CE are summed and the Subcontract Fee of 25% as per the Contract Data Part 2 are applied for those portions of the CE that are Subcontracted.
In the assessment of the CE, the Project Manager contends that only the Percentage for People Overheads is applicable and the Direct Fee must be removed from the summed value of the People.