NEC3 PSC Option A - Can a Consultant include a Fee for Subcontract Costs within a CE Quotation

I am currently in discussion with our Employer about the addition of a Fee to Subcontract Costs to cover an Overhead recovery and Back of Office functions such as Procurement and Finance. Our Listed Rates within CD Pt1 cover in house Time Charges only. The subject matter of the Subcontractor Costs is for On Site Surveys. Copy’s of Quotations have been provided as part of the Quotation.The Employers position is that the Net Subcontract Quotation is all that is allowed under the NEC3 Option A PSC.


Clause 63.10 allows you to propose a rate in your quotation for work that is not covered by the already agreed staff rates in CD Part 2.

I would therefore suggest that you built-up a rate (or rates) for the functions you mentioned (back-office, procurement etc), as the NEC3 PSC has no provision for “fee”. You would then quote for the change to the Prices in accordance with cl. 63.1 (actual/forecast Time Charge etc.).

I hope this helps.