NEC3 ECC - What items require to be considered for inclusion within the percentage fee for design overheads?

We are operating as a small M&E company and have been requested as part of a PQQ to advise of the percentage fee for design overheads. Is it to include for such matters as NI payments, Insurances Pension Professional Fees Redundancy Paper (consumables) Computer Equipment/Repairs Licences Software /Upgrades etc?

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The first thing to consider is the Option that you will be engaged under and therefore what the % will be used for. Under Options A&B the % will only be used to assess compensation events whereas under Options C&D it will be used for both payment of Defined Cost and assessment of compensation events.

I suggest that you make a list of your heads of cost (similar to those in your question) and reference them to where they will be recovered. You will need to check any Z clauses that may have be used to amend the standard coverage of the Schedule of Cost Components and SSCC.

Yes that kind of thing - anything else that you can not claim for that you will incur but is not already listed anywhere else within the schedule of cost components. It is a specific overhead for your design elements that will be applied to your design cost. The direct fee percentage is then applied to the overall total of the build up from the other elements within the schedule.

The guidance notes (brown book) are quite useful to clarify understanding generally. NEC4 will see further general changes to the schedule of cost components when they come out in June.

Essentially the SCC assumes that you can isolate your own Design Office fees (overheads) and your own Manufacture and Fabrication fees (overheads). Managing Reality Book 4 shows how the overall Contractors Fee is comprised.