We have received a quotation from a Contractor for some additional work. They have applied people rates correctly however, should these rates be scrutinised with substantiation requested as they should be the rate they actually pay their employee and not contain any profit?
Thanks
Hi, the people rates are treated as Defined Cost under clause 52.1. Both this clause and the Schedule of Cost Components states that the rates in the Contract Data are used and they do not require evidence of actual cost. Both Options A and B impose a pricing risk on to the Contractor at tender stage to set a fixed rate per category of person, they may actually pay more or less than the people rates.