NEC3 ECC Option D - Data for Schedule of Cost Components

In the Contract Data Part 2, there is a section for Data for Schedule of Cost Components, and in particular an area for rates to be agreed for those carrying out design / manufacture & fabrication outside the working area.

Can I just seek clarification that these rates are only to be used where the person is directly employed by the Contractor? And that if work is being carried out by a Labour only supplier then the Employer should pay defined cost plus fee?

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Yes that is the intention, Subcontractor’s are dealt with outside the SoCC in the first bullet point under clause 11.2(23). Component 6 (design) and component 5 (manufacture and fabrication) both mention the word employee but do not draw the distinction directly / not directly employed that is stated in component 1 (people) therefore I think it is broad enough to cover cover labour only and agency resource. They can’t be recovered as people as they are not within Working Areas and they do not fall within the definition of the term Subcontractor either, so it would be perculiar if the Contractor could not be paid for them under the components for manufacture and fabrication and design. For example two welders working side by side manufacturing something to be included in the works, one a direct employee and the other is self-employed but the Contractor only gets paid for one of them? Definitely not the intention.