NEC3 ECC - Shorter Schedule of Cost Components Percentages

NEC3 and NEC4 Contracts SOCC SSOCC
1

I was hoping that the reachback community would be able to help me with the theory of how to apply %’s on the example I have below.

Contract is NEC ECC Option A

Direct Fee is 9.5%

Subcontracted Fee is 9.5%

Working Area is “The site”

Data for Shorter Schedule of cost components (SCoCC) is:

People overheads 16%

Equipment Adjustment n/a

Design Overheads 15%

The Contractor has submitted a quote and within this quote there are:

  • The contractors Defined cost in line with the SCoCC mainly:
    • People cost.
    • Materials cost.
  • The subcontractors defined cost in line with the SCoCC mainly:
    • People cost
    • Design costs.

My question to the community is, which percentages apply to each area of the contractor’s quotation?

I’m sure I will have follow up questions but any help on the above will be greatly appreciated.

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2

Taking each component in turn:

People

  • Amount paid by Contractor for Contractor’s people + % people overheads = sub total for Contractor’s people

  • Amount paid by Subcontractor for Subcontractor’s people + % people overheads = sub total for Subcontractor’s people

Plant and Materials

  • Payments for purchasing Plant and Materials = sub total for Plant and Materials

Design

  • (Total hours worked by Subcontractor’s employees x hourly rates in Contract Data) + % design overheads = sub total for design

The direct and subcontracted fee percentages are then applied to the relevant components to arrive at a total, in your case as the fee percentages are the same it doesn’t matter but it would be important to apply it correctly if they were different.

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Defined Cost - Percentages - Option A contract
Sub contractor equipment cost
3

Thank you for your response Neil, much appreciated.

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