We are a small M&E company and as such rarely have a site establishment on our projects. Consequently most of the specific project management is performed within our office. Is it the case that all such costs require to be considered within the direct fee percentage or may part of our office be defined as part of the Working Area?
In consideration of our size would it be preferable for us to be considered as a lump sum subcontract cost to the main contractor as the Working Area and recoverable of costs arising therefrom are clearly inappropriate?
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The Option for you to be engaged under, A, B, C or D, should be made on the maturity of the Works Information. If it is well defined with minimal chance of change then a lump sum Option A should be considered.
The choice of Option will effectively dictate how you are to be paid eg against rates or based on the Schedule of Cost Components against a target.
The choice should not be made your ability to demonstrate cost otherwise you may end up in a mess!!
Just a point of note we believe NEC4 will make more allowance for people that are not working within the working area as they have recognised that this is a common problem/occurrence. hopefully this will make it clearer and fairer, but obviously only a help when you are working under these new conditions.