NEC3 ECC: Sub Contract Fee Percenatge

NEC3 and NEC4 Contracts General
1

Can somebody clarify the amounts to be included within defined cost where works are subcontracted. Would this include the subcontractors fee percentage from the ECS (subcontract form) or is this fee deemed to be included within subcontract fee percentage within the NEC Form?

Example scenario - what would the amount due be assuming the below:

  • £10,000 defined cost of sub contracted work established from using the schedule of cost components
  • Main form NEC subcontract fee percentage of 5%
  • ECS direct fee percentage of 10%

I have had various conflicting responses to this question and am seeking final clarification. Also would this scenario change between the various main options and the SSCC.

2

What level of fee is added will depend upon what Option you are using and hence the definition of Defined Cost - 11.2(22) or 11.2(23).

If using Option A or B the 10% would not be added. The 5% would be added to the subcontractor cost determined from the Shorter Schedule of Cost Components.

If using Option C or D then the 10% would be included since it forms part of the amount due to the subcontractor and then the 5% would added.