NEC3: Option D; In Schedule of Cost Components (SoCC) 1.2 & 1.3, Is it a requisite that these items should be included as entitlements in the Employment Contract or HR policies? If not included or employees are not entitled to one of the item listed in 1.2 &1.3, can the employer treat the cost as not a defined cost?
The contractor buys a car for their expats. Upon checking the employment contract of the expats, they are not entitled to a car plan, but instead the salary package already includes transportation allowance. The contractor contends that the cost of the car is reimbursable as stated in Socc 1.3 (n) vehicles. The PM claims that it is not a defined cost.