We are administering an NEC 3 Option C Contract. Application has been made for a site insurance fee of £350k as Defined Cost. This is a lump sum payment to cover all-risk exposure and the basis of the application is that there is a specific section nr 7 in the Schedule of Cost Components for insurance.
There are no Z Clauses which would affect or amend the Schedule of Cost Components.
Our question is whether the cost of this insurance is recoverable as Defined Cost or if it is included in the Contractor’s fee percentage.