I am having some difficulties in understanding how exactly a Main contractor should be preparing and pricing their quotations, specifically in regards to Subcontracted activities.
Where a main contractor is requested to submit a proposal for ECC option A – how should he build up his price of subcontracted works.
Option A Contract Data still requests Subcontractor fee percentage to be applied, therefore, should the main contractor request his quote from the subcontractor in the form of Defined Cost+subcontractor direct fee. On receipt of this, the main contractor will develop a subcontractor fee which accounts for the subcontractor direct fee and his own profit (therefore making the subcontractor fee marginally more than the direct)
Essentially my query is whether under ECC Option A we , as the Employer have the right to interrogate a the Main Contractors Subcontractors costs that they tender
The reason I ask is that during a Tender for ECC Option A- the Main contractor submitted, as part of his proposal, the lump sum quote from subcontractor and then proceeded to add subcontractor fee on top? Surely this is excessive and effectively equates to fee on fee as the subcontractor will already have included his OHP.
Your clarification would be hugely appreciated!