NEC3 ECC Option C - Is the cost of Employer's Liability Premiums a Defined Cost?

With the unamended Full SCC 13(i) in mind. Payment of premiums by the Contractor for Employer’s Liability insurance relating to People Providing the Works in the Working Areas.

Are these payments within Defined Cost or are they included in the Fee?

Although used as examples only the guidance offered in Pages 125 & 128 of the Guidance Notes is at odds with itself.

Thank you in advance.

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This is asked quite often with Employer’s having different views on this. My view is that, in the UK, you have to have Employer’s liability insurance in law and the cost that an organisation pays is related to the number of people it employs.

Consequently, it is a People cost whereby the annual cost to the organisation is divided by the number of people it employs and then the number of working days in a year to give a daily figure.

The counter-argument is that ‘Employer’s liability insurance’ it is not specifically identified as a People cost. However, the counter-argument to that is that the ECC is designed for international use and, while there may be equivalent insurances in different countries -and in developing countries, may not - Employer’s liability insurance is pretty specific to the UK, so would be a redundant term in the rest of the world.