We have a received a Compensation Event from a Contractor under an NEC4 Term Service contract. The quotation is made up of people costs and crane hire. The fee percentage has been correctly applied to the whole of the quotation. However, they have also applied the same fee percentage to the Subcontractor costs for the crane. Is this incorrect as they are applying fee on fee?
@MylesScrancher Is this something that you would able to advise on?
@trauts80 You need to check which Option you are under and look at Contract Data as this may be correct. If on an option A for example and the Equipment being charged by the Contractor is in the “published list” sometimes CD Part 2 has a mark up on the Equipment called the “percentage for adjustment for Equipment”
So the Defined Cost in such an instance is the Equipment rate in the “published list” + “percentage for adjustment for Equipment” + Fee.
If it is a straight Subcontractor cost it should only be the amount paid to that subcontractor (by the Contractor) + Fee
As i say check the Option and Contract Data first.
I hope this helps