When reviewing the NEC4 SCC/SSCC it is clear that most items previously associated with the NEC3 overhead percentages can be re-attributed elsewhere within the schedules. However, NEC4 seems to have removed reference to the likes or computing, specialist services and ‘supplies and services’.
Items that spring to mind are consumables (tea/coffee/soap/loo roll etc. which arguably may not all be ‘equipment consumed’), specialist services which are possibly not deemed as subcontracted (e.g. Fast Draft), computing which cannot be attributable as equipment (e.g. software subscriptions) and services to the job such as welfare servicing (which would be a mix of people and equipment from a supplier, but otherwise seen as a charge (but now not listed as one)).
Is there now an expectation that some items are now deemed to be included in the fee, or is the intention of NEC to attribute all previous overhead components within the NEC4 SCC/SSCC?
Confirmation, feedback or experiences/examples much appreciated.
Hi Matthew, clause 52.1 has not changed so yes, if it is not included in Defined Cost, i.e. there is nowhere to allocate the item under the SCC or SSCC, then it is treated as included within the Fee.
Equipment in both schedules is determined by referring to the definition under 11.2(9), in the SCC items 21 and 22 which both refer to hire rates, so if the item is hired or there is an open market hire rate for it, then it can be paid as Defined Cost otherwise it is treated as included within the Fee.
The SSCC refers to a list inserted in CD2 by the Contractor, so if the item is in the published list it is an item of Defined Cost.
SCC Items 23 and 24 apply to items that are identified within the Contract Data part 2.
Item 25 in both schedules covers consumables such as fuel, etc.
Food, drink, soap, etc, are not covered in either schedules unless perhaps it can be demonstrated to fall under 53(h).
Basically what you state is correct about the removal of the overhead percentages, and there will be a certain amount of reliance upon the PMs judgement as to whether an item of cost is included within Defined Cost or not, so dialogue between the Contractor and the PM is crucial but always remember that the PM’s decision is binding.
The SCC and SSCC are not meant to be akin to a published list such as CECA, they are purely descriptive and open to a little interpretation and perhaps flexibility.