NEC3, Option C - Schedule of Cost Components

Insurance for Employee Compensation is required to be provided by the Contractor under the law requirement (item 13(i) of Schedule of Cost Components). Should it be considered as part of Defined Cost?

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The definition of Defined Cost clause 11.2 (23) includes the cost of the components in the SCC, so if it’s recoverable under the SCC then it is Defined Cost.

You will see that in some instances the SCC is open to some interpretation e.g. 12(d) ‘special allowances’, I think if you feel comfortable categorising something under a certain heading and paying for it then do so, if not then it is treated as included within the Fee - clause 52.1.

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