# Sub-Contract Fee Under Option B
**URL:** https://reachback.builtintelligence.com/t/sub-contract-fee-under-option-b/4082
**Category:** Contract Data
**Created:** [5 May 2017 09:13 UTC](https://reachback.builtintelligence.com/t/sub-contract-fee-under-option-b/4082 "2017-05-05T09:13:12Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@system](https://reachback.builtintelligence.com/u/system)
#### Post date: [5 May 2017 09:13 UTC](https://reachback.builtintelligence.com/t/sub-contract-fee-under-option-b/4082/1 "2017-05-05T09:13:12Z")
I am working for a groundworks sub-contractor we are working for a main contractor under NEC option B.
We have encountered several delays and the main contractor has requested that our works are carried out on a cost + fee basis.
I have put forward cost + 15%.
However he has stated that in sub-contract data part 2 the sub-contract fee is 0%
So therefore we should be happy with 7.5%
Is this correct could he actually enforce cost + zero fee?
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### Author:  [@Jon\_Broome](https://reachback.builtintelligence.com/u/Jon_Broome)
#### Post date: [5 May 2017 10:20 UTC](https://reachback.builtintelligence.com/t/sub-contract-fee-under-option-b/4082/2 "2017-05-05T10:20:22Z")
What matters is your ‘direct fee percentage’ as entered in your contract’s Contract Data. That is the deal which is struck under NEC option B and you have signed up for it at 0%. Consequently, for the additional work, you will receive 0% margin.
They are asking you to convert the whole of your works to an an option E contract which is a fundamentally different contract strategy. It effectively means an agreement to terminate the old contract and replace it with a new contract. That is subject to commercial negotiation.
So you have to make a commercial decision wrt your total recovery under option B - i.e. original work Works Information @ whatever margin you had priced + changed WI @ 0% margin versus all remaining work @ 7.5% margin.